Basic concepts in programmatic advertising

Basic concepts in programmatic advertising

Photo: ChatGPT

What every publisher who wants to make money efficiently should know

Programmatic advertising brings huge potential to increase online content revenue. But it also comes with its own vocabulary, which can be confusing at first. In this article, we'll explain the most important terms you're sure to encounter as a publisher - clearly, concisely, and without unnecessary technical sauce.

1. Programmatic Advertising

An automated way to buy and sell online advertising through platforms that decide in real time what ads will be shown to whom.

2. RTB (Real-Time Bidding)

An auction model that runs in milliseconds every time the page loads. Advertisers compete with each other to serve ads to a specific user. The highest (and most effective) bidder wins.

3. DSP (Demand Side Platform)

A platform used by advertisers to buy advertising space. It allows them to target, set budgets and optimize campaigns.

4. SSP (Supply Side Platform)

A tool used by publishers to manage and sell their advertising space. It helps them maximize revenue by offering their inventory (ad space) in multiple markets simultaneously.

5. Ad Exchange

A digital exchange where DSPs and SSPs meet. It enables the linking of demand (advertisers) with supply (publishers) and facilitates RTB auctions.

6. Header Bidding

A technique that allows publishers to offer their ad space to multiple SSPs/DSPs at the same time before the standard auction starts. The result? Higher prices and fairer competition among advertisers.

7. CPM (Cost Per Mile)

Price per thousand ad impressions. A basic metric that shows you as a publisher how much you earn per impression.

8. Fill Rate

Percentage of advertising space that was actually sold. Higher fill rate = less empty spaces = higher profit.

9. Viewability

An indicator of whether the ad was actually visible to the user (e.g., at least 50 % ads displayed for 1 second). Important for advertisers - and increasingly influencing CPM levels.

10. First-Party vs. Third-Party Data

  • First-party data - Data that the publisher collects itself (e.g. from traffic, registrations, user behaviour).
  • Third-party data - Data from external providers to help better target advertising.

Conclusion: overview = advantage

Knowing these basic concepts will allow you as a publisher to better understand how selling your ad space works. Plus, it will help you communicate more effectively with partners and optimize your revenue.

If you're looking for a reliable partner to help you harness the power of programmatic advertising, we're here for you. We'll take care of the technical management, optimization and maximization of your content.

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We are located in the beautiful historical building Pradiareň 1900 on Svätoplukova Street in Bratislava.