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Ad Term of the Day: Spot Market

August 24, 2012

Originally an investment term, Spot Market is sometimes used to describe the publisher inventory selling process in online advertising, particularly in the RTB space.

Definition of ‘Spot Market’ from Investorpedia:
1. A commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective.

2. A futures transaction for which commodities can be reasonably expected to be delivered in one month or less. Though these goods may be bought and sold at spot prices, the goods in question are traded on a forward physical market.

Investopedia explains ‘Spot Market’
1. The spot market is also called the “cash market” or “physical market”, because prices are settled in cash on the spot at current market prices, as opposed to forward prices.

2. Crude oil is an example of a future that is sold at spot prices but its physical delivery occurs in one month or less.

~ Zorilla City

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