A

Ad Mediation – A platform for publishers that allows for the automatic or manual allocation of inventory across multiple ad networks and DSPs in order to maximize fill rates and effective revenue.

 

Ad Network – An ad network is a company which aggregates advertising inventories from a large number of publishers’ websites. The advertising network is a commercial and technical intermediary between advertisers and publishers.

 

Ad Server – An ad server is a web based tool used by publishers, networks and advertisers to help with ad management, campaign management and ad trafficking. An ad server also provides reporting on ads served on the website. Finally, an ad server serves the creative side: this means that the ad server or ad serving company also delivers the ad to each user’s browser.

 

API  – Application Programming Interface. A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. APIs are implemented by writing function calls in the program, which provide the linkage to the required subroutine for execution.

 

APP – App is an abbreviated form of the word “application.” An application is a software program that is designed to perform a specific function directly for the user or, in some cases, for another application program.

 

ARPU – Average revenue per user or average revenue per unit (ARPU) is an expression of the income generated by a typical subscriber or device per unit time in a telecommunications network.

 

Audience Based Targeting –Audience targeting is sometimes used to refer to the practice of targeting users according to first or third party data related to these users. Audience targeting data is often opposed to contextual or brand targeting where it is globally the advertising vehicle or website which is chosen.

B

Behavioural Context – In this type of targeting advertisers target specific users based on their previous online behaviour, such as browsing history or search history. This data is usually 1st party data – where advertisers collect data about users on online properties that they control (such as their own site or microsite), or 3rd party data – where the user data is aggregated by data companies and data exchanges and sold to advertisers.

C

Campaign Management – Campaign management applications help organizations segment, target and manage multichannel marketing messages. Elements of functionality include data mining, customer segmentation, customer-event triggering, next-best-action recommendation engines and campaign optimization.

 

CPC – Cost per click. A pricing model in which advertisers pay per actual clicks.

 

CPE – CPE is usually not related to an action taken on the ad itself – it is about engagement beyond the actual view of an ad, clicking it or even installing the app afterward. CPE is usually an event which happens after the ad was viewed, clicked, and installed. It can be a registration event, subscription, product tour, survey/poll or anything else that the advertiser wishes to achieve beyond the immediate metrics of impression (CPM), click (CPC) or install (CPI).

 

CPM – Cost per thousand impressions refers to the rate that an advertiser has agreed to pay per 1,000 views of a particular advertisement. A website that serves ads based on CPI doesn’t need the user to click on the ad – each appearance of the ad in front of a user counts as one impression. The advertiser agrees to pay the website a certain price for every 1,000 impressions the ad receives.

 

CPI – In a cost per install payment structure, clients pay only when the app is installed (at times even extending to regular post-install use).

 

CTR – Click Through Rate. The number of clicks divided by total impressions served, measured in percentage points. CTR = (Clicks / Impressions) * 100. For example, a CTR of 1% indicates that 1000 impressions will produce 10 clicks.

D

Data – Technically, raw facts and figures, such as orders and payments, which are processed into information, such as balance due and quantity on hand. Data may refer to any electronic file no matter what the format: database data, text, images, audio and video. Everything read and written by the computer can be considered data except for instructions in a program that are executed (software). May refer only to data stored in a database in contrast with text in a word processing document.

 

Data Sets – A collection of interrelated data. Originating in the mainframe community, the term is used today as a generic description of a database, which may include multiple tables. It may also refer to some other data structure and sometimes to a single file or collection of files.

 

Discrepancy – The difference between numbers reported by a publisher and a third party ad server, There will always be some degree of discrepancy between the publisher and the 3rd party ad server because of the differences in technology and the different points at which they count.

 

DMP – Data Management Platform. In simple terms, a data management platform is a data warehouse. It is a piece of software that sucks up, sorts and houses information, and spits it out in a way that’s useful for marketers, publishers and other businesses.

 

DSP – A demand-side platform is a piece of software used to purchase advertising in an automated fashion. DSPs are most often used by advertisers and agencies to help them buy display, video, mobile and search ads.

E

eCPM – The actual cost per thousand impressions, calculated after advertisers run a campaign. eCPM = (Cost / Impressions) * 1000. eCPM is different from CPM bid because when advertisers bid for inventory, very often they pay below their bid price. eCPM also allows one to compare the value/effectiveness of given inventory against others.

F

Fraud – Click fraud (sometimes called pay-per-click fraud) is the practice of artificially inflating traffic statistics to defraud advertisers or websites that provide venues for advertisers. By using automated clicking programs (called hitbots) or employing low-cost workers to click the links, the perpetrators create the illusion that a large number of potential customers are clicking the advertiser’s links, when in fact there is no likelihood that any of the clicks will lead to profit for the advertiser.

 

G

Geo Targeting – A method of detecting a website visitor’s location to serve location-based content or advertisements. Every visitor’s computer (mobile device) is tied up with an IP address that indicates its specific location. The first three digits of an IP address corresponds to a country code, while the succeeding digits often refer to specific areas within that domain. This geographical information, when used for marketing purposes, is called geo-targeting

I

Impression – The act of displaying an ad placement (or simply an ad) in an app. Every page load = impression for one ad placement.

 

Incentivized – Incentivized ads reward a user in exchange for completing an action – whether the action is an app download, a full video view, or referring a friend to register for a car service and take their first ride. In the case of mobile app advertisements, the reward is typically virtual currency, an upgrade within a game, or a discount on a product or service.

L

Look alike – A lookalike audience is an algorithmically-assembled group of social network members who resemble, in some way, another group of members.

 

LTV – CLV (Customer Lifetime Value) is a prediction of all the value a business will derive from their entire relationship with a customer.

M

M-Commerce – The use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Mobile commerce transactions continue to grow in number, and the term includes the purchase and sale of a wide range of goods and services, online banking, bill payment, information delivery and so on. Also known as m-commerce.

 

Mediation – See ‘Ad Mediation’

 

Monetization – To monetize is to convert an asset into or establish something as money or legal tender. When used in relating to a website or app, monetization simply refers to the act of making money from your website or other property.

 

Multichannel Marketing – Multichannel marketing refers to the practice of interacting with customers using a combination of indirect and direct communication channels – websites, retail stores, mail order catalogs, direct mail, email, mobile, etc. – and enabling customers to take action in response – preferably to buy your product or service – using the channel of their choice. In the most simplistic terms, multichannel marketing is all about choice.

N

Native Ads – A form of media that’s built into the actual visual design and where the ads are part of the content. It’s a method of advertising which seeks to provide content in the context of the user’s experience.

P

Profile – A description of a customer or set of customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history.

 

Profiling – Customer profiling is a way to create a portrait of your customers to help you make design decisions concerning your service. Your customers are broken down into groups of customers sharing similar goals and characteristics and each group is given a representative with a photo, a name, and a description. A small group of customer profiles or ‘personas’ are then used to make key design decisions with, e.g. “which of these features will help Mary achieve her goals most easily?”

 

Programmatic – Programmatic is the buying and selling of digital advertising using data collected by user behaviour and using that to be able to hit your target through smart learning of technology.

R

Retargeting – A sub-set of Behavioural Targeting. Re-targeting is the type of targeting when users are shown ads if they completed a certain action in the past (visited the advertiser’s site, clicked on the ad, etc.). Re-targeting is achieved by placing a simple text file (called a “cookie”) on the user’s browser after a special code fires (called a “pixel”), indicating a specific action. For example, the user visits the page, where the re-targeting pixel is pre-installed. This pixel then fires and places a cookie in the user’s browser. This user is added to the “cookie pool” of users. Advertisers then are able to target this “cookie pool”.

 

RTB – Real Time Bidding. The process of bidding for an ad placement in real time by multiple advertisers. The winner serves the ad. During the Real Time Bidding process, the page loads with no ad on it, and only with the “opportunity for an ad”. The page passes valuable information (known as the “bid request”) to multiple advertisers, and based on this information, advertisers decide whether or not they want to bid for this placement. The price is determined in accordance with the “Second Price Auction” principle.

S

SDK – Short for software development kit, a programming package that enables a programmer to develop applications for a specific platform. Typically an SDK includes one or more APIs, programming tools, and documentation.

SSP – A supply-side platform is a piece of software used to sell advertising in an automated fashion. SSPs are most often used by online publishers to help them sell display, video and mobile ads.