Programmatic Advertising Glossary

Programmatic advertising can be difficult to understand if you’re unfamiliar with the process. To help make sense of it, we have provided a list of key terms and actors in the programmatic digital media supply chain. 

Ad Exchange – the space in the Programmatic Advertising system where brands/agencies and publishers buy and sell inventory

Buyer – brands and agencies who purchase inventory (ad space) from publishers 

Cost Per Thousand (CPM) – the value of an impression proposed by buyers and set by publishers; the highest CPM bid by the buyer wins the impression 

Click-Through Rate (CTR) – a measurement for marketers to determine how many times a link was clicked 

Data Management Platform (DMP) – platforms used by marketers to collect, organize, and utilize data to market to their target audience in programmatic advertising campaigns 

Data Suppliers (also known as Data Providers) – provide brands and agencies with third-party data to use alongside their first-party data 

Demand-Side Platform (DSP) – a place for buyers to store creatives or ads and learn about available inventory from publishers

Deterministic Data data that consists of unique identifiers (like usernames, email addresses, and phone numbers) that determine who individuals are; often provided by consumers themselves 

First-Party Data – data that a brand has collected from its owned properties – like on their website or at point of sale  

Inventory – also known as ad space or impressions, which publishers sell to buyers 

Private Marketplace (PMP) – a variation of RTB (Real-Time Bidding) where only a select number of advertisers bid for ad space 

Probabilistic Data – data that is used to segment consumers based on their characteristics and behaviors online 

Programmatic Advertising – an automated system designed for marketers and publishers to buy and sell ad space 

Programmatic Direct – a process in which inventory is not being auctioned off by publishers. There is only one buyer purchasing inventory at a fixed, negotiated CPM 

Public (Open) Auction – utilized by publishers in the RTB process to make their inventory available to all buyers in the Ad Exchange  

Publisher – sells ad space to brands and agencies through SSPs (Supply Side Platform) to monetize their websites; determines CPM of ad space 

Real-Time Bidding (RTB) – the process in which digital advertising is bought and sold via auction instantaneously 

Supply-Side Platform (SSP) – where publishers sell their inventory 

Third-Party Data – audience information that is provided by Data Suppliers to brands and agencies to augment their first-party data and expand reach; Tip: Many data suppliers lack high-quality data. Make sure yours can provide data that is multi-sourced and validated.  

Read our Introduction to Programmatic Advertising blog to learn how programmatic works and how it can extend your audience reach.

Make sure to bookmark this page, so you can reference key terms as we dive deeper into Programmatic Advertising. 

Learn more about Redi-Data Digital – our new solution to reaching Healthcare Providers (HCPs) online in the programmatic space.