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The Hipster's Guide to Speaking Programmatic

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Those cutting-edge, early adopting programmatic cats have developed some pretty confusing lingo for buying and selling ads automatically. Have no fear: we’ve decoded the jive talk so it’s easy to make smart, strategic decisions about programmatic.

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The Hipster's Guide to Speaking Programmatic

  1. 1. T H E speaking Programmatic G U I D E T O Those cutting-edge, early adopting programmatic cats have developed some pretty confusing lingo for buying and selling ads automatically. Have no fear: we’ve decoded the jive talk so it’s easy to make smart, strategic decisions about programmatic. Programmatic 60% 30 billion Impression Buying digital advertising space automatically, with computers using data to decide which ads to buy and how much to pay for them, often in real-time. UK digital display ads bought programmatically in 20151 Private auction An invitation-only auction for programmatic ad space, also known as a private marketplace (PMP). Auctions for programmatic ads take place in fractions of a second as the page is being loaded. The occasion when a user loads a web page and sees an ad. Programmatic buying is a way of deciding which ad each visitor will see. Estimated number of impressions served by Google alone during a single day2 NEW! Open auction Real-time bidding When advertisers pay for fake impressions generated by bots or other non-human traffic. Ad Fraud Describes the ad spaces that are available to buy (whether programmatically or manually). The currency in which advertisers usually bid for programmatic ads. Inventory CPM SECOND-price auction The DSP that bids highest buys an ad – but they only pay as much as the second-highest price plus one cent. The process by which different DSPs bid for an impression on behalf of their clients. In an open auction, any DSP can bid for any impression. 2 The IAB defines an ad as “viewable” if at least half of it appears on the screen for more than one second. Viewability Amount of programmatic spend through open auctions in 20146 The technology used by programmatic buyers to decide which impressions to buy and how much to pay for them. Demand Side Platform DSP It pulls together things like behavioural and demographic data to help buyers understand which users to target. Data Management Platform DMP It’s the technology used by publishers to sell advertising space programmatically. Supply Side Platform SSP 15 Luma Partners lists 15 DSPs for display advertising alone3 8 Luma Partners lists 8 SSPs for display advertising4 25 Luma Partners lists 25 DMPs for display advertising5 70% Amount of programmatic spend predicted to go through private auctions by 2021 80% 0.36 seconds Typical duration of a real-time bidding auction, including serving the winning ad7 Proportion of LinkedIn standard display ad inventory now available to programmatic 100% Forrester predicts average CPMs will have risen by this amount between 2012 and 20178 76% Proportion of programmatic buyers who believe ad fraud is undercutting their performance. 69% Proportion of programmatic buyers who worry that their ads aren’t viewable. 63% 0.01 cents The amount by which the cost of an ad exceeds the second place bid on LinkedIn Cost per Thousand impressions 2C00145K001 2C00145K001 l000IMPRESSIONS l000IMPRESSIONS 1CPM 1CPM 1 https://www.iabuk.net/about/press/archive/digital-adspend-grows-at-fastest-rate-for-seven-years 2 http://venturebeat.com/2012/10/25/30-billion-times-a-day-google-runs-an-ad-13-million-times-it-works/ 3 http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/ 4 http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/ 5 http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/ 6 http://adage.com/article/digital/programmatic-half-total-display-ad-revenues/299440/ 7 https://www.exchangewire.com/wp-content/uploads/2013/11/Life-of-an-Ad_A4-1.jpg 8 http://adage.com/article/digital/forrester-reduces-forecast-online-ad-spending/237647/

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