IS3150 Programmatic Advertising Quiz

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Questions and Answers

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?

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?

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?

A small percentage of gamers make purchases (C) Signup and view all the answers

Which option describes retargeting primarily?

Engaging users who have shown interest in previous ads (C) Signup and view all the answers

What is the role of ad networks in programmatic advertising?

Facilitate transactions between advertisers and publishers (B) Signup and view all the answers

Why is it important for visitors to distinguish between editorial content and advertisements?

To enhance user experience and trust (D) Signup and view all the answers

Which of the following describes a way that publishers can earn revenue?

By embedding a software development kit (SDK) for ads (B) Signup and view all the answers

What is the main purpose of a second-price auction in real-time bidding?

The buyer pays $0.01 more than the second highest bid. (B) Signup and view all the answers

Which term describes the minimum price a publisher will accept for an ad impression?

Price Floor (D) Signup and view all the answers

What does header bidding allow for in the advertising process?

A more efficient bidding process. (D) Signup and view all the answers

What is a significant consequence of the Chrome cookie policy change mentioned?

Decrease in visitor demographics data. (B) Signup and view all the answers

What is the primary way advertisers typically place advertising banners?

Via display advertising networks like Google or Criteo (A) Signup and view all the answers

What does the ad vetting process ensure in display advertising networks?

Ads displayed are relevant to the site's content (C) Signup and view all the answers

In programmatic advertising, which type of data is essential for targeting potential customers?

Detailed demographic and interest data. (B) Signup and view all the answers

How has the digital advertising landscape evolved by 2017?

It moved from direct buying and selling to data-driven marketing (A) Signup and view all the answers

Which of the following describes the clearing price in programmatic advertising?

The final price paid for an ad impression. (C) Signup and view all the answers

What is a key characteristic of programmatic advertising?

It uses real-time bidding to target specific viewers (A) Signup and view all the answers

What role does data play in determining an advertiser's bid in programmatic advertising?

It helps tailor the bid based on target profiles. (A) Signup and view all the answers

In display advertising, what factor influences the targeting options provided to advertisers?

The ad network's classification of the site (C) Signup and view all the answers

Which of the following is NOT a characteristic of real-time bidding?

Fixed rate for every impression sold. (B) Signup and view all the answers

What major trend has influenced the placement of display ads in recent years?

The rise of programmatic buying and real-time bidding (C) Signup and view all the answers

What role does site classification play in display advertising networks?

It influences which advertisers can display ads on the site (A) Signup and view all the answers

What is the primary outcome of using real-time bidding (RTB) in advertising?

Enhanced efficiency in ad purchasing and targeting (C) Signup and view all the answers

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.

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.