The Programmatic Path to Profit for Publishers

The Programmatic Path to Profit for Publishers

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The Programmatic Path to Profit for Publishers

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  • Appendix: A Glossary of Programmatic Advertising Terminology

    Ad exchange: technology platform that enables the buying and selling of advertising.

    Ad server: technology solution that delivers ads to website users.

    Brand marketing: the building of the reputation of a brand, often using advertising, in order to drive engagement and sales in the future.

    Contextual advertisements: ads that are displayed to users according to the content of the website on which they are displayed (for example, on the sports page of a newspaper site).

    CPM (cost per mille): cost of 1,000 impressions of a certain type (or, from a publisher’s perspective, the price it realizes per 1,000 impressions).

    Demand-side platform (DSP): technology platform that allows advertisers and agencies to manage their purchases of advertising space on exchanges.

    Demand sources: technology platforms or exchanges that connect publishers with buyers wanting to purchase ad inventory. Demand sources can refer to supply-side platforms (SSPs), which provide both access to demand and the tools to manage it, and to individual buyer solutions.

    Direct-response marketing: the use of advertising to influence users to take an immediate action, such as clicking on an ad or purchasing a product.

    Direct sales (also known as traditional sales): buying and selling of digital advertising based on one-time agreements for a set volume of inventory and involving a mostly manual workflow of agreements and trafficking into the ad server.

    Discrepancies: ad impressions that are lost, owing to technical issues, as they are passed between different technology platforms.

    First look: sales model that gives a chosen buyer first refusal on the purchase of selected inventory before it is offered to other buyers.

    First-party data: data derived by a publisher about its users, for example, log-in data or the history of viewing a particular section of its website.

    Floor price: the minimum price that a publisher will accept for a certain piece of inventory.

    Go-to-market strategy: how a business delivers its product to its target customers, including packaging, pricing, and channels.

    Guaranteed sales: sales model in which the buyer and seller agree in advance on the volume and type of inventory purchased. (See also “direct sales” and “programmatic guaranteed.”)

    Invitation-only auction (also known as private auction): sales model that allows select buyers to compete with one another in an auction for certain inventory.

    Invitation-only deals (also known as private marketplaces [PMPs] or private deals): sales model that gives select buyers access to certain inventory or certain terms of purchase, such as price. Includes both “unreserved fixed-rate” and “invitation-only” auctions.

    Native content: advertising that is integrated with the content and style of a particular website.

    Nonguaranteed sales: sales model in which the buyer and seller do not agree in advance on the volume of inventory purchased; the buyer usually makes purchasing decisions on an impression-by-impression basis using real-time bidding.

    Open auction (also known as open exchange or open market): sales model that allows all buyers to bid on ad impressions via an ad exchange.

    Programmatic buying/trading/selling: the automated buying and selling of digital advertising.

    Programmatic guaranteed (also known as automated guaranteed or programmatic direct): sales model in which the buyer and seller agree in advance on the volume and type of inventory purchased, with automated technology making the RFP and trafficking processes more efficient.

    Remnant inventory: ad inventory that the publisher has not been able to sell through its premium channels.

    Sell-side platform (SSP): technology platform that provides access to demand (via an exchange, for example) and enables publishers to manage the sale of their advertising space on ad exchanges. The publisher can establish sales parameters such as which inventory is available for which type of purchase, set floor prices, and block certain advertisers or creative content.

    Targeting: displaying ads to certain users based on their characteristics.

    Technology stack: the software that enables programmatic-advertising sales activities.

    Unique demand: buyers (or budget from buyers) available only in a single demand source.

    Unreserved fixed rate (also known as preferred): sales model in which the buyer and seller agree in advance on the price of certain inventory, but the buyer is under no obligation to purchase impressions and can decide on an impression-by-impression basis. This model often gives a buyer (or group of buyers) preferential access to inventory. (See also “first look.”)

    Yield management (or yield optimization): techniques that publishers use to increase revenue from their advertising inventory, such as by adjusting floor prices with the objective of maximizing revenue through higher CPMs or a higher volume of sales.