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Programmatic advertising is a method of buying and selling ad realestate in real time using a software solution such as a programmatic ad network. The website or video player puts an ad impression up for auction using a supply-side platform (SSP). the highest offer) is awarded the ad impression.
RPM is a metric used to determine the total ad revenue a publisher is set to earn for 1000 ad impressions. CPM, on the other hand, is the amount an advertiser will pay for 1000 ad impressions. By the end of the guide, you’ll be able to speak confidently about these metrics and impress your team!
While advertising offers a fairly consistent source of revenue, publishers using this model face many challenges, such as achieving high fillrates, ad fraud, ad blockers and privacy settings, and properly collecting user data, segmenting it and making their audiences available to advertisers.
With the right ad provider by your side, you won’t have to worry about low ad fillrates or CPMs. When a publisher joins a supply-side platform , this platform collects data on the publisher’s ad realestate. Every time a user visits the publisher’s website or plays a video, this realestate is offered on an ad exchange.
When a user opens the publisher’s app, a piece of ad realestate is generated. This realestate needs an advertisement to be monetized. Although it may not bring as much ad revenue as direct deals, it is the best option for selling any leftover ad realestate to advertisers. .
These key programmatic advertising components have allowed publishers to move from manually selling ad impressions to advertisers to real-time auctions. Publishers: Publishers provide the digital realestate where ads will appear. billion in 2012 to an estimated $147.1 billion in 2021.
Because of these numbers, pre-rolls are the undisputably most valuable digital ad realestate of the three instream ad types. Second, because of high demand, pre-rolls have a higher ad fillrate. This will convert into higher impressionrates and, by extension, higher ad revenue. This means two things.
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