TRADE DESK EDGE QUESTIONS AND
ANSWERS
The economic concept of liquidity is important in digital
advertising because:
Digital advertising is a marketplace
Liquidity measures how quickly an asset can be converted to
cash
Healthy marketplaces require liquidity
All answers apply - CORRECT ANSWER-All answers apply
Real-time bidding (RTB):
-Cuts out the buyer
-Prices online inventory via an auction
-Requires a background in stock trading
-Favors relationships over efficiency - CORRECT ANSWER-
Prices online inventory via an auction
"Dynamic Creative Optimization" creates a personalized ad for
each user by using cookies. (T/F) - CORRECT ANSWER-True
A demand-side platform (DSP) sells inventory on behalf of
publishers across the internet. (T/F) - CORRECT ANSWER-
False
A data management platform (DMP) helps you evaluate
audience data by:
Conducting lookalike modeling
, Forecasting available impressions
Segmenting users
All answers apply - CORRECT ANSWER-All answers apply
A DSP activates the data stored in a DMP.
-True
-False - CORRECT ANSWER-True
Cost per mille (CPM) measures:
The price an advertiser pays per 1,000 impressions
The price an advertiser pays per 1,000,000 impressions
The price a publisher pays per 1,000 impressions
The price a publisher pays per 1,000,000 impressions -
CORRECT ANSWER-The price an advertiser pays per 1,000
impressions
DSPs optimize to:
High CPMs
Low CPMs
High sell-through rates
Low sell-through rates - CORRECT ANSWER-Low CPMs
CPM measures the cost per user action.
True
False - CORRECT ANSWER-false
In programmatic advertising, buying at a CPM rate means that
you are only buying impressions by the thousand and not
individually.
True
False - CORRECT ANSWER-false
Supply-side platforms (SSPs) and exchanges will most likely
separate in the future to create an objective and efficient
market.
(T/F) - CORRECT ANSWER-True
ANSWERS
The economic concept of liquidity is important in digital
advertising because:
Digital advertising is a marketplace
Liquidity measures how quickly an asset can be converted to
cash
Healthy marketplaces require liquidity
All answers apply - CORRECT ANSWER-All answers apply
Real-time bidding (RTB):
-Cuts out the buyer
-Prices online inventory via an auction
-Requires a background in stock trading
-Favors relationships over efficiency - CORRECT ANSWER-
Prices online inventory via an auction
"Dynamic Creative Optimization" creates a personalized ad for
each user by using cookies. (T/F) - CORRECT ANSWER-True
A demand-side platform (DSP) sells inventory on behalf of
publishers across the internet. (T/F) - CORRECT ANSWER-
False
A data management platform (DMP) helps you evaluate
audience data by:
Conducting lookalike modeling
, Forecasting available impressions
Segmenting users
All answers apply - CORRECT ANSWER-All answers apply
A DSP activates the data stored in a DMP.
-True
-False - CORRECT ANSWER-True
Cost per mille (CPM) measures:
The price an advertiser pays per 1,000 impressions
The price an advertiser pays per 1,000,000 impressions
The price a publisher pays per 1,000 impressions
The price a publisher pays per 1,000,000 impressions -
CORRECT ANSWER-The price an advertiser pays per 1,000
impressions
DSPs optimize to:
High CPMs
Low CPMs
High sell-through rates
Low sell-through rates - CORRECT ANSWER-Low CPMs
CPM measures the cost per user action.
True
False - CORRECT ANSWER-false
In programmatic advertising, buying at a CPM rate means that
you are only buying impressions by the thousand and not
individually.
True
False - CORRECT ANSWER-false
Supply-side platforms (SSPs) and exchanges will most likely
separate in the future to create an objective and efficient
market.
(T/F) - CORRECT ANSWER-True
