The 30 magic words of programmatic buying

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Article updated 8 months ago by NewsMDirector

Do you know the essential programmatic buying terms? There are countless concepts to define various aspects of the digital marketing environment. From something as basic as the target of an online marketing campaign to terms like CLV that not everyone can decipher.

This could create a huge dictionary of programmatic buying terms and other azerbaijan whatsapp phone numbers areas of digital advertising that, if you master them, will help you increase sales.

Need some guidance? Here's a little cheat sheet to refresh your memory. It's 30 programmatic buying terms used in the IAB Spain White Paper on Programmatic Buying that will make you an expert in this form of online marketing.

TABLE OF CONTENTS
1.- RTB
2.- Banner
3.- CPM
4.- Bid
5.- Ad Exchange
6.- Inventory
7.- CPA
8.- Target
9.- Display
10.- Open exchange (Open auction)
11.- 1st Party date
12.- 2nd Party data
13.- 3rd Party data
14.- Trading desk
15.- Private marketplace
16.- Impressions
17.- CPC
18.- DSP Platform
19.- CLV – Customer lifetime value
20.- CRM
21.- Ad Server
22.- SSP Platform
23.- DMP Platform
24.- Big Data
25.- Digital support
26.- Retargeting
27.- Cookie
28.- CTR
29. Preferential access
30. Data providers
1.- RTB
Programmatic Buying Terms: RTB

Real Time Bidding (RTB) is a real-time bidding system for each of the impressions of an advertisement in each of the available advertising spaces on a website. The RTB system, which is one of the pillars on which programmatic buying is based , goes beyond the traditional way of managing digital display advertising, based on the CPM model (cost per thousand impressions).

2.- Banner
Banners are a space provided on websites and social networks to display advertising. Banners can be of various sizes and usually include sounds, animations and even video. IAB has made a classification of the different banner formats. Clicking on them usually takes you to the website or landing page of the company that is advertising.

3.- CPM
Cost per thousand impressions. This is the advertising pricing model based on payment for every thousand impressions generated by an advertisement.

4.- Bid
Bidding is a process in which several advertisers want to occupy the same advertising space on a website. The space will be assigned to the advertiser who generates the highest profitability within the website.

5.- Ad Exchange
Infographic explaining what programmatic buying is

This is one of the essential terms of programmatic buying. It is the place where supply and demand come together to carry out commercial transactions. The ad exchange is an online platform that connects advertisers and publishers. The publishers offer and manage their advertising spaces and the advertisers create and manage their campaigns.

6.- Inventory
A company's inventory consists of its raw materials, its work in progress, the supplies it uses in its operations, and its finished products. Advertising inventory, as one of the terms of programmatic buying, however, is the total number of impressions that a publisher can market on any of the sections of its page or on its website as a whole.

7.- CPA
Acronym for cost per acquisition. It is a purchasing model that goes beyond the click, as it requires a certain action on the part of the user at the moment they reach the advertiser's landing page. This action can be summarized as a subscription, a download or a purchase of a product, among other possible actions. In this way, the advertiser only pays when said action is executed.

8.- Target
This is the target audience. For a company or a brand, it is very important because it will indicate who the product or service offered is aimed at. This is the target audience that will be the future consumer of your brand. Hence the importance of identifying it properly.

9.- Display
Traditional advertising works by contracting certain spaces in different media for a specific period of time. In the digital environment, technology allows this process to be automatic and measurable.

To do this, you have two types of online advertising: search engine ads (SEM) and display advertising, a format based on showing ads, generally in the form of banners, in different areas of a web page. In display advertising, impressions are contracted and the usual measurement system is CPM, another of the programmatic purchasing terms analyzed in this post.

10.- Open exchange (Open auction)
Programmatic buying terms: open exchange

It is an ad exchange that allows advertisers and buyers to participate without any restrictions. The auction is open to anyone who wants to participate.

11.- 1st Party date
This is data collected from the advertiser's own sources. These include data collected from channels such as their own website (navigation, page views), their display actions (clicks, impressions, etc.), social networks (likes, fans), mobile, emailing, or CRM.

12.- 2nd Party data
This involves the collection of first-party data from one company by a completely different company. This second-hand data or information is usually traded with another partner with whom the company is related. This is how the first-party data is supplemented.

13.- 3rd Party data
Unlike first-party data, this data comes from sources external to advertisers. In fact, it is usually provided by data providers. It can be various data on age, gender, interest, location, etc.

14.- Trading desk
Refers to the connection between agencies and direct advertisers with multiple online advertising Ad Exchanges. It is the technical team made up of people who optimize the programmatic purchase of their different advertisers by connecting with multiple DSPs. They can be part of a media agency or be independent companies.

15.- Private marketplace
Programmatic Buying Terms: Transactions

These are ad exchanges that are restricted or limited to a few media and advertisers. This way, there is stricter control over supply and demand.

16.- Impressions
The number of times or frequency that an advertisement is displayed on a search engine or website. Ads that are paid for by impressions use the CPM system, cost per thousand impressions.

17.- CPC
Cost per click. The rate that specifies how much you pay for each click you get on an ad. It is an advertising buying technique in which you pay based on the number of clicks. It does not actually count the views or impressions of the ad.

18.- DSP Platform
Acronym for Demand Side Platform. It is a bidding technology that allows advertisers and/or media agencies to buy inventory on different ad exchanges. Bids are made based on audience data, in this case, impression by impression.

19.- CLV – Customer lifetime value
Customer lifetime value is a piece of data that allows companies to know how much they can spend on marketing to acquire a new customer. It is the estimated value that a customer can have for a brand throughout the entire contact between the two.

20.- CRM
Acronym for Customer relationship management. It consists of a strategy and software for organizing and synchronizing sales, as well as marketing processes, customer service and technical support. In this way, CRM encompasses customer support, marketing campaign management and sales team management.

21.- Ad Server
Programmatic Buying Terms: Adserver

Among the essential terms of programmatic buying is the Ad Server. It is a platform whose objective is to send the ads to thousands of advertising spaces.

22.- SSP Platform
Acronym for Supply Side Platform. This is a technological platform that allows media and advertising networks to optimize the performance of their inventory automatically, helping them to access multiple sources or demand aggregators that exist (ad exchanges, DSPs, agency trading desks, etc.) in an automated manner.

23.- DMP Platform
Also known as Data Management Platform, these platforms collect, integrate and manage large amounts of data of all kinds, which can be both structured and unstructured. In fact, they have the ability to collect audience data from any source.

24.- Big Data
Programmatic buying terms: big data

Among the terms used in programmatic buying, Big Data is the one that defines the enormous and growing amount of data that the digital world generates and processes to turn it into knowledge. Thanks to this data, many brands extract analytics that help with decision-making in real time.

25.- Digital support
Digital media is an online communication channel. The digital ecosystem has allowed the emergence of numerous channels and media in which to launch campaigns. These can be, among many others, email marketing , SMS marketing , landing pages, retargeting, social networks or blogs.

In terms of programmatic buying, it refers to the different web pages on which ads can be served.

26.- Retargeting
Retargeting is an online advertising model that shows people who have shown interest in a certain e-commerce site, product or service via the Internet information about those products while they browse other digital spaces. On a technical level, to create a retargeting campaign , websites need to place a code that allows them to be tracked.

27.- Cookie
Programmatic buying terms: cookies

A cookie is a small text file containing information stored in the user's browser for the purpose of identifying the user's behavior during their activity and between visits or sessions. It is essential for retargeting campaigns.

28.- CTR
The Click-Through Rate (CTR) shows how often users who see an online marketing action end up clicking on the links that appear. To obtain the click-through rate, the number of users who clicked on the links must be divided by the number of impressions of the ad, banner or email.

29. Preferential access
Programmatic Buying Terms: Preferred Access

It is similar to the private auction because it is located in the private ad exchange environment, but with the exception that there is no auction but rather the relationship is established between the support and the buyer.

In this way, a price is pre-negotiated and everything happens in a more transparent manner. It is a practice similar to direct sales but without inventory reservation and which occurs within the ad exchange environment. The buyer may or may not buy all the inventory that the platform makes available to them.

30. Data providers
They are data collectors, aggregators and processors with the ability to direct this information to brands so they can carry out their branding and performance media actions.

By knowing these 30 programmatic buying terms, you will be able to improve your programmatic campaigns. However, it is always important to put them into practice. At MDirector we have a self-service tool that allows you to integrate your email marketing, real-time bidding on display and SMS campaigns.

With CRM Retargeting you can add a cookie to each user in your database to communicate with them while they browse different digital spaces. Do you want to know how CRM Display Retargeting works ?