T H E
speaking ProgrammaticG 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
ImpressionBuying 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 auctionAn 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-timebidding
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 SidePlatform
SSP
15Luma Partners lists 15 DSPs for display advertising alone3
8Luma Partners lists 8 SSPs for display advertising4
25Luma Partners lists 25 DMPs for display advertising5
70%Amount of programmatic spend predicted to go through private
auctions by 2021
80%
0.36 secondsTypical 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 centsThe amount by which the cost of an ad exceeds the second place bid on LinkedIn
Cost per Thousand impressions
2C00145K001
2C00145K001
l000IMPRESSIONS
l000IMPRESSIONS
1 CPM
1 CPM
1 https://www.iabuk.net/about/press/archive/digital-adspend-grows-at-fastest-rate-for-seven-years2 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/