PAC PAC Programmatic Supply Chain and Inventory 3

Question 1

What is 'bid shading' in programmatic advertising?

Accepted Answer

A technique used in first-price auctions to reduce bid prices toward the expected clearing price

Answer

Bid shading algorithms predict the minimum price needed to win a first-price auction, preventing overbidding and improving efficiency.

Question 2

What does the 'sellers.json' file help buyers verify?

Accepted Answer

The identity and legitimacy of all entities in the programmatic supply chain authorized to sell inventory

Answer

Sellers.json, hosted by SSPs and exchanges, discloses all authorized sellers in their supply path so buyers can audit transparency.

Question 3

What is 'supply path optimization' (SPO) for DSPs?

Accepted Answer

The process of selecting the most efficient and transparent paths to reach publisher inventory

Answer

SPO helps buyers identify and prefer direct, low-fee supply paths, reducing intermediary costs and improving auction transparency.

Question 4

What is 'domain spoofing' in programmatic ad fraud?

Accepted Answer

Fraudsters misrepresenting low-quality inventory as premium publisher domains to deceive buyers

Answer

Domain spoofing tricks advertisers into paying premium CPMs for inventory falsely labeled as a reputable publisher's domain.

Question 5

What is the purpose of a 'deal ID' in programmatic advertising?

Accepted Answer

A unique identifier that links a specific negotiated deal between a buyer and publisher within the RTB auction

Answer

Deal IDs allow DSPs to identify and target specific PMP or PG deals within a bid request, applying special pricing or access rules.

PAC - Programmatic Advertising Certification Practice Test