PAC PAC Programmatic Supply Chain and Inventory 2 — Questions and Answers
Question 1: What is a Private Marketplace (PMP) deal in programmatic advertising?
- An open auction with no price floor
- An invitation-only auction where select buyers bid on premium publisher inventory (Correct answer)
- A direct deal with guaranteed impressions
- A marketplace for buying remnant inventory
Correct answer: An invitation-only auction where select buyers bid on premium publisher inventory
PMPs are closed, invitation-only RTB auctions that give select advertisers access to premium inventory at agreed deal IDs.
Question 2: What does 'eCPM' stand for and what does it measure?
- Effective Cost Per Mille; the revenue earned per 1,000 ad impressions (Correct answer)
- Expected Cost Per Mille; the projected cost of future campaigns
- Enhanced CPM; premium-priced inventory metric
- Estimated Cost Per Month; a budget planning figure
Correct answer: Effective Cost Per Mille; the revenue earned per 1,000 ad impressions
eCPM normalizes revenue across different buying models so publishers can compare the effective value of every 1,000 impressions.
Question 3: What is ad stacking fraud in programmatic advertising?
- Placing multiple ads on top of each other so only the top ad is visible but all register impressions (Correct answer)
- Stacking bids to manipulate auction prices
- Running the same creative across multiple channels
- Layering audience segments in targeting
Correct answer: Placing multiple ads on top of each other so only the top ad is visible but all register impressions
Ad stacking involves placing multiple ads in a single placement so hidden ads generate fraudulent impressions without being seen.
Question 4: Which organization provides the ads.txt standard to combat inventory fraud?
- IAB Tech Lab (Correct answer)
- MRC (Media Rating Council)
- TAG (Trustworthy Accountability Group)
- NAI (Network Advertising Initiative)
Correct answer: IAB Tech Lab
The IAB Tech Lab introduced ads.txt (Authorized Digital Sellers) to allow publishers to publicly declare authorized sellers of their inventory.
Question 5: In a first-price auction model, how is the winning bid price determined?
- The winner pays the second-highest bid plus $0.01
- The winner pays their full submitted bid amount (Correct answer)
- The winner pays a flat CPM floor set by the publisher
- The winner pays the average of all bids submitted
Correct answer: The winner pays their full submitted bid amount
In a first-price auction, the highest bidder pays exactly what they bid, which increases bid shading strategies among DSPs.
Question 6: What is 'latency' and why does it matter in RTB supply chains?
- The time delay in the bid response process, which can cause lost bids if it exceeds timeout thresholds (Correct answer)
- The amount of time an ad remains visible on screen
- The delay between ad click and landing page load
- The lag between campaign launch and first impression delivery
Correct answer: The time delay in the bid response process, which can cause lost bids if it exceeds timeout thresholds
RTB auctions complete in milliseconds, so high latency in DSP bid responses means bids arrive too late and are disqualified.
PAC PAC Programmatic Supply Chain and Inventory 2
What is a Private Marketplace (PMP) deal in programmatic advertising?