2. CONTENTS
01 |What is Digital Advertising & Programmatic?
02 |The Programmatic Ecosystem
04 | Basic Formulas forOnline
Advertising
03 | Definition ofTerms
06 | IAB Ad Formats
05 | How does Programmatic work?
07 | Interesting articles &Videos about Programmatic
3. 01 |What is Digital Advertising & Programmatic?
DIGITAL ADVERTISING
is the use of Internet technologies to deliver advertisements to consumers. It includes
advertisements and messages delivered through email, social media websites, search engines
and banner ads on mobile or desktop.
PROGRAMMATIC
is the use of software to automate the buying, placement, and optimization of advertising.
4. 02 |The Programmatic Ecosystem
Brands/ad
units buyer
Trading Desks
Where buy and sell of
ad units happen
Ad units
seller
Represents advertiser / buyer’s
side
Represents seller / publisher’s
Connects
advertisers to
web sites that
want to host
advertisement
s
5. 03 | Definition ofTerms
REAL TIME
BIDDING
RTB is the buying and selling of ad impressions which is done in an auction that occurs in the time it takes your webpage to
load.
PRIVATE MARKET PLACES
PMP is an invite only marketplace where the inventory of premium publishers is offered to a selected group of advertisers.
DEMAND-SIDE
PLATFORM
DSP is the platform that powers programmatic advertising from the advertiser’s side. It enables advertisers to purchase
display ad inventory via RTB exchanges.
SUPPLY-SIDE PLATFORM
SSP is the platform that publishers use to organize, manage and control their digital ad inventory and maximize revenue from
digital media.
6. 03 | Definition ofTerms
DATA MANAGEMENT PLATFORM
A platform for collecting, organizing, and managing data, which enables the creation of custom audiences based on first- and
third-party data. DMPs are used to target campaigns to these audiences, deliver reporting, and gain insight about the
audiences of specific websites/creative/email/media.
AD
SERVER
A software that stores data about advertising content and delivers ads to websites and applications. In addition to this, an ad
server may also track ad views and clicks and target ads based on pre-defined criteria.
MEDIA
AGENCY
Advises companies on how and where to advertise, and on how to present a positive picture of themselves to the public.
Primary services include advertising, public relations and other forms of media management.
TRADING
DESKS
Are centralized management platforms used by ad agencies that specialize in programmatic media and audience buying.
They are typically layered on top of a DSP or other audience buying technologies.
7. 04 | Basic Formula of Advertising
CTR is the ratio of clicks an ad receives to the number of times it has been displayed. It is
calculated by dividing the number of clicks by the number of impressions of a particular ad and
multiplying the result with 100.
Formula: CTR = (Number of clicks / Number of impressions)X 100
Example: In a campaign, your ad was displayed 2000 times and received 50 clicks to the landing
page. The CTR is (50 / 2000) X 100 = 2.5% which is very good. The higher the CTR, the more
successful is the campaign.
CLICK
THROUGH RATE
8. 04 | Basic Formula of Advertising
CPM - Cost per Mille or Cost perThousand Impressions
CPM is the cost for every thousand impressions the ad has been displayed.
Formula: (Cost to an Advertiser / Impressions ) X 1000
Example: The advertiser is spending US$30.00 on the campaign of 3500 impressions. The cost for
a thousand impressions would be (30 / 3500) X 1000 = US$ 8.57.
COST PER MILLE
9. 04 | Basic Formula of Advertising
CPC refers to the price for each click in CPC campaigns. The advertiser has to pay for each click
instead of impression, meaning that no matter how many times an ad is viewed by its audience,
the advertiser will have to pay only when the user clicked on the ad.
Formula: CPC = total cost to an advertiser / total number of clicks
Example: Let's say the ad gets two clicks, one costing $0.20 and one costing $0.40, for a total cost
is $0.60. You'd divide $0.60 (your total cost) by 2 (your total number of clicks) to get an average
CPC of $0.30.
COST PER CLICK
10. 04 | Basic Formula of Advertising
CR is the ratio of conversions created by an ad on to the number of clicks the ad generated.
Formula: CR = ( Number of Conversions / Number of Clicks ) X 100
Example: Let’s assume that ABC company sells shoes through an e-shop. It ran an ad campaign
and the ad received 250 clicks. The advertising was happy seeing the CTR. But much to his
surprise, the number of conversion on the website was only 1 meaning that only 1 product was
sold throughout the time the ad was live.The conversion rate is (10 / 250) X 100 = 0.4%.
CONVERSION
RATE
11. 04 | Basic Formula of Advertising
CPA (Cost Per Action or Acquisition) is calculated by dividing the cost to an advertiser by the
number of actions taken. Another way to calculate CPA is dividing the cost to an advertiser by the
number of impressions, then dividing the result by the click through rate and finally dividing the
result by the conversion rate.
Formula:
CPA = Cost to an Advertiser / Number of Conversion
CPA = Cost to an Advertiser / (Number of impressionX CTR X CR)
COST PER
ACQUISITION
12. 04 | Basic Formula of Advertising
CPL is very similar to CPA with the exception of the goal of the campaign. In fact CPL is one type
of CPA as conversion of a visitor into a lead is one kind of action being taken on the website.
Formula: CPL = Cost to the Advertiser / Number of Leads generated from the ad
COST PER
LEAD
13. 04 | Basic Formula of Advertising
Viewability is an online advertising metric that aims to track only impressions that have actually
been seen by users. If an ad is loaded at the bottom of a webpage but a user doesn’t scroll down
to see it, that impression would not be deemed viewable.
Requirement for an impression to be considered asViewable Impression:
Pixel Requirement: Minimum 50% pixels of the ad must be visible in viewable space of the
browser.
Time Requirement: the ad must be visible in the browser for a minimum time on one continuous
second, post ad render.
Formula: Viewability Rate = (total viewable ad impressions/total ad impressions) x 100
VIEWABILIT
Y
14. 05 | How does Programmatic work?
• A user visits a web page that has available ad space (inventory).
• The browser sends information about the ad space and the user to SSP.
• The SSP sends this information to the ad exchange (bid request).
• At the ad exchange these bid requests are compared against the information sent by DSPs looking for ads with particular criteria.
• Once there is a match between a bid request sent by SSP and the ad information provided by DSP, a bid response is sent from
the ad exchange.
• The winning bidder then serves an ad in the user’s browser.
• All of this happens within 100ms, before you can even blink.
15. 06 | IAB Formats
IAB is an organization that develops advertising
industry standards, conducts research, and
provides legal support for online advertising
industry.
INTERNATIONAL ADVERTISING
BUREAU
16. 06 | Most Commonly Used Ad Units - Desktop
Wide
Skyscraper
160 x 600
Large
Leaderboard
970 x 90
17. 06 | Most Commonly Used Ad Units - Desktop
Medium
Rectangle
300 x 250
18. 06 | Most Commonly Used Ad Units - Desktop
Half Page
300 x 600
19. 06 | Most Commonly Used Ad Units - Desktop
Leaderboard
728 x 900
20. 06 | Most Commonly Used Ad Units - Desktop
Billboard
970 x 250
21. 06 | Most Commonly Used Ad Units - Mobile
Interstitial
320 x 480
22. 06 | Most Commonly Used Ad Units - Mobile
Rectangle
300 x 100
23. 06 | Most Commonly Used Ad Units - Mobile
Middle Page
Unit
300 x 250
24. 06 | Most Commonly Used Ad Units - Mobile
Mobile Banner 1
320 x 50
28. 07 | Interesting Articles andVideos about Programmatic
Understanding Programmatic DigitalAdvertising - IAB Digital Simplified
How an Ad is Served with RealTime Bidding (RTB) - IAB Digital Simplified
ARTICLE
S
VIDEOS
10ThingsYou need to Know about Programmatic
Define it.What is Programmatic Buying?
Programmatic Advertising and Media Buying
What is Programmatic Marketing, Buying and Advertising?
WTF is a data management platform?
The difference between first, second, and third party data and how to use them
47. MOBILE SPECIAL FEATURES
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When the user rotates the mobile phone,
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48. THANK YOU
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