Programmatic advertising is on pace to be a $65 billion a year industry by 2020. But there's still a lot of confusion over what that term actually means. Hi, my name is Ben and I've been teaching digital advertising course 2015. Throughout this introduction to programmatic, I'm going to walk you through what programmatic actually is. What are the terms? What are the players?

What does the technology actually do? And how does it help advertisers execute buys in a more efficient platform. By the end of this, you'll have a baseline understanding of what programmatic advertising actually is, and the players involved. So lean in, get ready. Thanks for joining. You see the banner 320 by 50.

That's important. Now we know what size it is. So we know our retirees who are looking to fill it, they can only fill it if they have the size add. Further down, we see bundle ID and category. So we know it's weatherbug. And we know it is categorized as IV category through weather news.

So now we know the content that we're running on. We also now know the OS of the operating system. In this situation, it's apple. That can be important to know because if we're driving to download an Android app, we don't want to serve that on an Apple device. If I'm publisher, I may have a million impressions available. And I set a floor of $1.

Turns out my bill rate is 10%. And my eCPM is $1. Keep it up $1. For easy math, that will deliver me a revenue of $100. So for every one million impressions I have at this floor, I'm getting about $100 in revenue. Now let's say I'm on the ad ops team, I said, well, that fill rate is pretty low, I want to try to increase it.

Well, one way to increase your fill rate is to drop your floor. That means more advertisers will have the opportunity to bid on your inventory. Same situation, again, a million impressions. This time I've dropped my floor all the way to 10 cents. My fill rate has jumped up to 50%, but my eCPM has decreased as well. so in this situation, even though my fill rate has gone up, I'm only generating $50 per 1 million impressions.

So this is not working for me.