The Programmatic Glossary
A practical glossary designed to help marketers, advertisers and ad-tech professionals understand the terminology that powers programmatic advertising
Programmatic
Open Auction
A public, real-time advertising auction that any qualified buyer can participate in. No special access, no pre-arranged prices. The highest bidder above the floor price wins. It is the most common and accessible form of programmatic buying.
HOW IT WORKS
Publishers make their inventory available to any DSP (Demand-Side Platform) connected to their SSP (Supply-Side Platform) or exchange. Bid requests are broadcast broadly, all interested buyers submit bids and the highest bid above the floor wins. There is no negotiation; it is purely price-based competition.
EXAMPLE
A news publisher puts their run-of-site display inventory into an open auction. Hundreds of advertisers compete simultaneously for every impression. A local estate agent might win an impression in Manchester; a global bank might win the next one. The publisher maximises competition and earns the market rate for each slot.
RELATED TERMS
Private Marketplace (PMP) | Preferred Deal | First-Price Auction | Ad Exchange | Bid Floor
★ LIMELIGHT INSIGHT: Limelight's platform supports open auction trading as part of a full deal-type mix, enabling publishers to balance open market revenue with premium private deal arrangements.
