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Quizzes > Quizzes for Business > Marketing

Take the Digital Advertising Procurement Quiz

Assess Your Sourcing and Buying Strategy Skills

Difficulty: Moderate
Questions: 20
Learning OutcomesStudy Material
Colorful paper art symbolizing a quiz on Digital Advertising Procurement

Ready to sharpen your procurement skills with this digital advertising procurement quiz? This practice quiz covers key topics from supplier selection to cost optimization in media buying. Ideal for marketing professionals or procurement specialists looking for a targeted test. You can also explore our Digital Advertising Product Knowledge Quiz or challenge yourself with the Procurement Sourcing Procedure Quiz for broader insights. All questions are fully editable in our quizzes editor, so you can adapt them to your learning needs.

Which of the following is a primary criterion when selecting a digital advertising supplier?
Company founding year
Audience reach and targeting capabilities
Number of full-time employees
Office location proximity
Audience reach and targeting capabilities determine how effectively a supplier can connect ads with the intended audience. Other factors like employee count or location are less directly tied to campaign performance.
What does CTR measure in digital advertising?
Percentage of impressions that result in clicks
Rate of ad conversions
Cost spent per thousand impressions
Viewable ad placements
CTR, or click-through rate, is calculated by dividing the number of clicks by the number of impressions. It directly measures the effectiveness of an ad in generating clicks.
Which programmatic procurement method involves real-time auctions for ad impressions?
Preferred deals
Real-time bidding (RTB)
Programmatic direct guaranteed
Fixed insertion orders
Real-time bidding (RTB) is the process of buying and selling ad impressions in real time through auction-based marketplaces. Other methods like preferred deals and programmatic direct guaranteed use pre-negotiated terms rather than open auctions.
In digital advertising cost models, what does CPC stand for?
Cost per conversion
Cost per campaign
Cost per click
Cost per customer
CPC stands for cost per click and refers to the amount an advertiser pays each time a user clicks on an ad. It is one of the most common pricing models in digital advertising.
Which legal framework governs personal data protection for digital ads in the European Union?
Digital Millennium Copyright Act (DMCA)
ePrivacy Directive
General Data Protection Regulation (GDPR)
California Consumer Privacy Act (CCPA)
The General Data Protection Regulation (GDPR) sets strict rules on personal data collection and usage across the EU. Other laws like CCPA apply in different jurisdictions or cover narrower topics.
Which negotiation tactic involves setting a minimum acceptable bid price in a programmatic deal?
Volume discount
Dynamic creative optimization
Floor price
Bid shading
A floor price is the minimum price a publisher will accept for an ad impression in a programmatic auction. Bid shading and other tactics serve different optimization purposes.
Which metric standardizes performance by converting results to a cost per thousand impressions basis?
ROI
CTR
CPA
eCPM
eCPM, or effective cost per mille, translates various performance outcomes to a standardized cost per thousand-impression metric. This enables comparison across different channels and pricing models.
What is header bidding used for in digital media buying?
Optimizing creative formats dynamically
Encrypting user data for compliance
Measuring viewability rates
Allowing multiple demand sources to bid simultaneously before the ad server call
Header bidding enables publishers to call multiple demand sources in parallel before making an ad server request. This maximizes revenue by ensuring competitive bids rather than sequential waterfall auctions.
Which metric represents the average number of times an ad is shown to each unique user?
Clicks
Unique reach
Frequency
Impressions
Frequency measures how often a unique user sees an ad on average during a campaign. Unique reach counts the distinct users exposed, not the repeat exposures.
In a second-price auction, the winner pays:
The publisher's reserve price
The second-highest bid plus a small increment
Their own maximum bid
The average of the top two bids
In a second-price auction, the winning bidder pays just above the second-highest bid rather than their full bid amount. This encourages honest bidding and fair market pricing.
What defines a private marketplace (PMP) in programmatic deals?
A programmatic direct guaranteed deal
An invitation-only auction with select buyers
A blind aggregate auction
A fully open marketplace to all advertisers
A private marketplace is an invitation-only programmatic auction where publishers grant access to selected buyers. This offers more control than open auctions while retaining auction dynamics.
Brand safety measures in ad procurement aim to prevent placements next to:
Competitor ad placements
High-traffic news websites
User-generated social posts
Offensive, harmful, or nonbrand content
Brand safety focuses on avoiding environments that could damage a brand's reputation, such as harmful or offensive content. It does not block all user-generated or competitor contexts by default.
Which document outlines advertiser requirements and invites proposals from potential suppliers?
Invoice
Request for Proposal (RFP)
Statement of Work (SOW)
Creative brief
An RFP details campaign objectives, budgeting, targeting, and evaluation criteria to solicit structured proposals. Other documents have different roles in project management or billing.
Viewability rate measures the percentage of served ads that:
Load without errors
Receive at least one click
Meet the criteria for being in view on a user's screen
Convert to a sale
Viewability rate tracks how many ads were actually viewable by users, per standards like the IAB's 50% for one second rule. Clicks, conversions, and load success are separate metrics.
Dynamic creative optimization (DCO) is best described as:
Manual swapping of ad images each week
Real-time assembly of ad elements based on audience data
Static ad templates for all users
Outsourcing creative to third-party agencies
DCO uses data signals to customize and assemble ad components in real time for each user. Manual or static methods lack this automated personalization ability.
Which technique uses algorithms to recommend bid prices just below the expected second-highest bid?
Bid throttling
Bid shading
Frequency capping
Header bidding
Bid shading algorithms analyze auction dynamics to suggest optimal bids slightly below the expected second-highest bid, reducing costs while winning impressions. Other tactics serve different optimization goals.
When managing ad procurement across multiple jurisdictions, which mechanism addresses lawful cross-border data transfers from the EU?
Digital Services Act
Standard contractual clauses
UK Data Protection Act only
CCPA compliance
Standard contractual clauses are legal agreements sanctioned by the EU to permit personal data transfers outside EU borders. Other regulations address different regions or purposes.
In strategic sourcing, what defines a reverse auction?
A single supplier is invited to quote
Pricing is negotiated after the contract is signed
Buyers increase bids to secure inventory
Suppliers compete by lowering their prices dynamically
A reverse auction reverses the traditional auction process, allowing suppliers to undercut each other's prices in real time. Buyers benefit from downward price pressure.
Machine learning - based ad fraud detection primarily analyzes which of the following?
User demographic surveys
Publisher financial reports
Creative asset quality
Anomalous traffic and interaction patterns
ML-based fraud detection systems identify patterns in traffic, clicks, or conversions that deviate from expected norms. This helps to isolate bot activity or invalid traffic sources.
Portfolio-based media buying allocates budget across channels based on:
Performance correlations and risk diversification
Equal spend on every channel
The vendor with the highest reach only
Historical cost-per-click alone
Portfolio-based buying draws on principles of diversification, allocating funds where performance and risk profiles complement each other. Simple equal allocation or single-metric focus ignores broader optimization.
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Learning Outcomes

  1. Analyse supplier selection criteria for digital advertising
  2. Evaluate bid negotiation tactics in programmatic procurement
  3. Identify key performance metrics in ad procurement contracts
  4. Apply cost optimization techniques in media buying
  5. Demonstrate understanding of legal and compliance frameworks
  6. Master strategic sourcing processes for digital campaigns

Cheat Sheet

  1. Understand Programmatic Media Buying - Say goodbye to manual ad buys and hello to automated auctions! Programmatic media buying uses smart algorithms to snag the perfect digital slots in real time, boosting efficiency and precision. Learn more on Perion
  2. Master Key Technologies in Programmatic Advertising - Dive into the world of DSPs, SSPs, Ad Exchanges, and DMPs to orchestrate seamless ad delivery. Knowing how these platforms talk to each other is like having the ultimate backstage pass. Explore key concepts on Perion
  3. Evaluate Supplier Selection Criteria - Choose your digital advertising partners like you'd pick a winning team: check reputation, cost, cultural fit, and proposal strength. A solid scorecard keeps your campaigns in championship form. Read the guide on Art of Procurement
  4. Implement Effective Bid Negotiation Tactics - Become a savvy negotiator by balancing cost, quality, and delivery timelines. A clever negotiation strategy turns every ad dollar into maximum impact. Get tips from Procure4Marketing
  5. Identify Key Performance Metrics - Keep your eyes on impressions, clicks, conversions, ROAS, and reach to gauge success. Tracking these will help you tweak and turbocharge your ad campaigns. See metrics advice on Perion
  6. Apply Cost Optimization Techniques - Use data-driven insights and trend analysis to stretch your ad budget without skimping on results. Smart optimization means more bang for every buck. Discover techniques on Procure4Marketing
  7. Ensure Legal and Compliance Adherence - Stay on the right side of advertising laws and industry standards to keep your campaigns crash-and-claim-free. Compliance protects your brand and your budget. Learn compliance basics on Procure4Marketing
  8. Master Strategic Sourcing Processes - From needs assessment to contract management, a solid sourcing plan lays the groundwork for campaign success. Think of it as your digital campaign road map. Explore strategic sourcing on Procure4Marketing
  9. Recognize the Importance of Data-Driven Decision Making - Harness consumer insights and market trends to shape your ad strategies. Data is your secret ingredient for campaigns that truly resonate. Uncover best practices on Procure4Marketing
  10. Stay Adaptable to Innovation - Embrace emerging platforms and cutting-edge tools to keep your campaigns fresh and competitive. The ad world moves fast - so should you! Stay updated with Procure4Marketing
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