Podcast
Questions and Answers
Which option qualifies as a publisher in a display advertising network?
Which option qualifies as a publisher in a display advertising network?
- A fitness app displaying ads from its own sales team
- An e-Commerce site showing its own sales items
- A financial app showing video ads as a third-party partner (correct)
- A personal finance site displaying ads from Criteo (correct)
What is one primary benefit for advertisers using programmatic advertising?
What is one primary benefit for advertisers using programmatic advertising?
- Ability to market to a vast audience efficiently (correct)
- Dependence on manual ad placements
- Increased cost of advertisement reach
- Reduced need for data analytics
What is a characteristic of the margin for publishers in programmatic advertising?
What is a characteristic of the margin for publishers in programmatic advertising?
- Often higher than 60%
- Typically around 5%
- Usually less than 20%
- Generally around 40% (correct)
What is one reason small developers in the gaming industry rely on ads?
What is one reason small developers in the gaming industry rely on ads?
Which option describes retargeting primarily?
Which option describes retargeting primarily?
What is the role of ad networks in programmatic advertising?
What is the role of ad networks in programmatic advertising?
Why is it important for visitors to distinguish between editorial content and advertisements?
Why is it important for visitors to distinguish between editorial content and advertisements?
Which of the following describes a way that publishers can earn revenue?
Which of the following describes a way that publishers can earn revenue?
What is the main purpose of a second-price auction in real-time bidding?
What is the main purpose of a second-price auction in real-time bidding?
Which term describes the minimum price a publisher will accept for an ad impression?
Which term describes the minimum price a publisher will accept for an ad impression?
What does header bidding allow for in the advertising process?
What does header bidding allow for in the advertising process?
What is a significant consequence of the Chrome cookie policy change mentioned?
What is a significant consequence of the Chrome cookie policy change mentioned?
What is the primary way advertisers typically place advertising banners?
What is the primary way advertisers typically place advertising banners?
What does the ad vetting process ensure in display advertising networks?
What does the ad vetting process ensure in display advertising networks?
In programmatic advertising, which type of data is essential for targeting potential customers?
In programmatic advertising, which type of data is essential for targeting potential customers?
How has the digital advertising landscape evolved by 2017?
How has the digital advertising landscape evolved by 2017?
Which of the following describes the clearing price in programmatic advertising?
Which of the following describes the clearing price in programmatic advertising?
What is a key characteristic of programmatic advertising?
What is a key characteristic of programmatic advertising?
What role does data play in determining an advertiser's bid in programmatic advertising?
What role does data play in determining an advertiser's bid in programmatic advertising?
In display advertising, what factor influences the targeting options provided to advertisers?
In display advertising, what factor influences the targeting options provided to advertisers?
Which of the following is NOT a characteristic of real-time bidding?
Which of the following is NOT a characteristic of real-time bidding?
What major trend has influenced the placement of display ads in recent years?
What major trend has influenced the placement of display ads in recent years?
What role does site classification play in display advertising networks?
What role does site classification play in display advertising networks?
What is the primary outcome of using real-time bidding (RTB) in advertising?
What is the primary outcome of using real-time bidding (RTB) in advertising?
Flashcards
Programmatic Advertising
Programmatic Advertising
Using software to automate the buying and selling of online advertising.
Ad Network
Ad Network
A platform connecting advertisers with publishers (websites, apps).
Publisher
Publisher
A website or app that displays ads.
Real Time Bidding (RTB)
Real Time Bidding (RTB)
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Aggregation (Ad Networks)
Aggregation (Ad Networks)
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Advertisers' benefit (Ad Networks)
Advertisers' benefit (Ad Networks)
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Publishers' benefit (Ad Networks)
Publishers' benefit (Ad Networks)
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Importance of distinguishing Editorial from Ads
Importance of distinguishing Editorial from Ads
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Ad Vetting
Ad Vetting
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Site Classification
Site Classification
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Targeting Options
Targeting Options
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Why Programmatic?
Why Programmatic?
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Inventory vs. Viewer
Inventory vs. Viewer
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Evolution of Display Advertising
Evolution of Display Advertising
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Second-Price Auction
Second-Price Auction
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Price Floor
Price Floor
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Clearing Price
Clearing Price
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Header Bidding (vs. Waterfall)
Header Bidding (vs. Waterfall)
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What data influences ad bids?
What data influences ad bids?
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Re-targeting
Re-targeting
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What determines the clearing price?
What determines the clearing price?
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How does Chrome cookie policy affect bidding?
How does Chrome cookie policy affect bidding?
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Study Notes
Programmatic Advertising
- Course: IS3150
- Semester: AY 24/25, Sem 1
- Professor: Lai Kok Fung
Learning Outcomes
- Pricing models of digital advertising
- Programmatic & Real Time Bidding (RTB)
- Related issues
Recap: Display & Retargeting
- Interactive digital experiences with users
- Targeting based on digital interactions
- Displaying ads & retargeting users
- Example display: car ad
Ad Network
- Publishers in a display advertising network can include:
- Websites from personal finance sites like Criteo
- Fitness apps displaying full-screen animated videos by the publisher's own ad sales team, but not third party
- Financial apps displaying full-screen animations from social media advertising platforms
- Game apps embedding a software development kit (SDK) without direct dealing with another game developer are not.
- E-commerce sites displaying their own sales items are.
Ad Networks & Aggregators
- Aggregation = Scaled advertising
- Advertisers - efficiently market to a large audience pool
- Publishers - gain earnings from otherwise inaccessible advertising revenue
- Specialized aggregators:
- Unity: Platform for small game developers
- Criteo: Mostly re-targeting and e-commerce
Quiz (2023): Display Advertising - Overview
- Distinguishing editorial content from advertisements is crucial for demonstrating media company independence.
- Advertisers often place banners through ad networks like Google and Criteo, or directly with publishers for large placements.
- Ad networks ensure ad accuracy & relevance, site content matching, classification, and targeting options.
Bid Types
- CPM (Cost-Per-Mille): ads based on visibility
- CPC (Cost-Per-Click): ads based on customer response
- CPA (Cost-Per-Action): ads based on conversions.
- More Advertiser Burden in CPM & CPC
- More Publisher Burden in CPA
Evolution of Display Advertising
- 2012: A simpler display advertising ecosystem
- 2017: Advanced, complex data-driven ecosystem with real-time bidding; targeting ad viewer profiles
Majority of Display Ads placed via Programmatic
- Programmatic digital display ad spending is increasing each year, steadily growing over 2019-2023
Real Time Bidding (RTB): Basics
- Real-time bidding (RTB) is an automated bidding process to show ads in real-time
- YouTube videos explain RTB
RTB: Step by Step
- Diagram illustrates the steps in RTB ad serving from publisher to brand advertiser
Google Ad Platform: Behind the Scene
- Diagram illustrates the steps in an ad campaign from a user website visit through to ad showing.
More on Programmatic Advertising
- Second-price auctions: Paying an ad amount slightly higher than the next lowest bid.
- Price Floor: Minimum price a publisher accepts.
- Clearing Price: Final agreed price for an ad impression
- Header Bidding is a technology for more effective bidding management
Advertiser Bids High for Data
- Advertiser bids high for valuable customer data
- Target specific customer profile for ads
Types of Data
- 1st party data: data about users you own (e.g., website visitors)
- 2nd party data: data about users shared with others (e.g., data about users shared by website with another party
- 3rd party data: data bought from another source (e.g., data from a data broker or compiled by Google & Facebook)
- Quality is rated on a scale
- Reach is rated on a scale
Second Party Data Example on Facebook
- Sharing ad audiences with other ad accounts on Facebook
- Facebook platform allows sharing of ad audiences
Programmatic Advertising: Complex Landscape
- Programmatic ad technology landscape diagram of various components in a programmatic advertising ecosystem
- Numerous various parties involved in the process
Consolidation
- Google & Facebook Ad platforms consolidate the ad processes
- Limited opportunity for smaller ad companies
Opaque Bidding
- Programmatic ad technology is fully automated by system algorithms
- Issues are beginning to surface with big monetization
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Description
Test your understanding of programmatic advertising principles and pricing models in this IS3150 quiz. Explore critical concepts such as real-time bidding, ad networks, and digital display strategies. This quiz will challenge your knowledge and recall of key topics covered in the course.
