Programmatic Advertising Flashcards

What is header bidding in programmatic advertising?

Answer: A technique where multiple demand sources bid simultaneously before the ad server makes a call

Header bidding allows publishers to offer inventory to multiple ad exchanges simultaneously before making calls to their ad servers, increasing competition and revenue.

What does 'floor price' mean in a programmatic auction?

Answer: The minimum CPM a publisher will accept for their inventory

A floor price is the minimum CPM a publisher sets, below which they will not sell their inventory, protecting against undervaluation.

What is the difference between first-price and second-price auctions in programmatic?

Answer: First-price: winner pays their bid; Second-price: winner pays one cent above the second-highest bid

In a first-price auction, the winner pays exactly what they bid, while in a second-price (Vickrey) auction, the winner pays one cent above the second-highest bid.

What is audience segmentation in programmatic advertising?

Answer: Dividing audiences into groups based on shared characteristics for targeted advertising

Audience segmentation divides users into groups based on demographics, behaviors, or interests so advertisers can target specific segments with relevant messages.

What is lookalike modeling in programmatic targeting?

Answer: Finding new users who share characteristics with your existing high-value customers

Lookalike modeling uses data science to identify new potential customers who have similar attributes to an advertiser's best existing customers.

What is frequency capping in programmatic advertising?

Answer: Limiting how many times a single user sees the same ad within a given period

Frequency capping controls how many times an individual user is exposed to the same ad during a defined time period, preventing ad fatigue.