Okay, as we get into the introduction to programmatic advertising, let's review the agenda for today. First, we're going to define digital advertising, talk about ad sizes and Sanders and common pricing models, just to get a baseline understanding of where we are and what we're talking about. Then we're gonna get into how it works, talking about the ad tech companies that are involved, publisher integrations, then start to get into the actual programmatic process. Then we're gonna talk about using data to inform buys, talking about programmatic versus RTB, two terms you may be familiar with, but I'll talk about how they're different. Talking about integration types, auction types, reporting. Finally, a quick recap at the end.
So, getting into it, defining digital advertising. Well, to start, we're talking about any paid advertising and placement running on a digital platform, which includes desktop and laptop computers. mobile phones, tablets, smart TVs, Ott boxes, game consoles, or any IoT device which accepts advertising acronyms here, Ott over the top boxes that is something like your Roku. IoT is Internet of Things. So talking about digital ad sizes, these are the standard ad sizes that are involved in programmatic programmatic really doesn't handle any custom execution that is still very much handled by a direct IO order or a direct contract. So on the left, you see your common sizes 300 by 257 28 by 9300 by 600.
These sizes are presented in pixels. So if you've ever seen that before, and didn't know where those numbers came from, it'll be 300 pixels wide by 250 pixels tall, etc, etc. On the right, we see a screenshot of CNN. And as we look through it, we can start to identify some ad units. So, highlighted in red, we see a couple of boxes a 300 by 250, and a 728 by 90. If we look a little bit further, we see another one.
That doesn't seem to be a standard unit. This one is promoting a CNN property. So we can imagine that this is a custom unit that cnn puts on their site, not part of their programmatic process. Also, if we continue looking, we see paid content down at the bottom. This would be native advertising. Native can be done programmatically, it may or may not be done programmatically in this situation.
But when you see something like that, that is meant to look and feel like the site content itself, that is referred to as native advertising. Now let's talk about some common pricing models. Again, these are all standard regardless of whether you're doing programmatic but these are ones that are going to be important for us later on. The first is CPM cost per thousand. That is how the majority of digital impressions are bought and sold on a cost per 1000 basis, the M in Latin 4000 that is why it is CPM not CPT. Also important to know the effective CPM.
The effective CPM comes into play because when you're buying programmatically, you may buy $1 one place $2 another 50 cents another so it's important to get an average and say across the board over all the impressions. I bought all the impressions that were served, what was my effective CPM I can also look at things like cost per click and cost per action CPC and CPA usually In programmatic, these are not used to buy and sell or price the medium. But they are metrics that an advertiser may look for. They may buy on a CPM and then go back and look at their results and say, What was my effective cost per click? What was my effective cost per action? An action could be an app download, it could be buying a product, it could be filling out a form, it could be taking an action on a site, there are a lot of different things that could constitute an action.
And advertisers may look to effectively find out what they're paying to get each one of those actions