A/B testing in adtech is the process used to experiment with different campaign elements to understand what works out the best.
The total number of times a digital advertisement is displayed on the screen and counted.
In the mobile app marketing world, an active user is a person who accesses an app for a given amount of time. During this time, each user is counted to provide an app developer with an accurate figure of how many people use the app.
An ad campaign is an advertising strategy across multiple channels to achieve a specific goal such as brand awareness, increasing followers, and so on.
Ad inventory is a way of referring to the number of ad space impressions a publisher makes available via their website within a specific timeframe.
An ad network is a third party that connects advertisers and websites that want to monetize their ad inventory with the appropriate advertisers.
Ad network aggregates publishers into content categories to find corresponding advertisers who want to purchase ad inventory at a high volume at a lower price, enabling advertisers to let go of site-direct purchases.
Ad mediation refers to ads being shown in a mobile app environment. Ad mediation helps publishers drive competitive auctions with their advertisers and drive ad earnings for the publisher.
Ad servers help advertisers, publishers, ad agencies, and ad networks to run their ads and administer their advertising campaigns to measure the success and performance of different campaigns.
An advertisement is a form of digital or commercial communication in which a product, service, or concept is advertised through the use of explicitly sponsored messages hosted on various channels.
An advertising agency, brand, corporation, or any other entity that purchases the ad inventory to market their service, product, or brand.
A digital marketplace where publishers and advertisers may buy and sell ad inventory via real-time bidding, most commonly in the form of display, video, and mobile ads.
An ad tag is a piece of code that allows advertisers to display advertisements. It is placed within the source code of the website, and every time a user lands on the page, the tag gets triggered.
An ad unit is a placeholder for an ad on a website, or in an app. A publisher can have multiple ad units, with each ad unit serving different ad formats and sizes.
Adblock browser extensions and phone applications help users block unwanted ads from being displayed.
Average Revenue Per User or ARPU in-app marketing is a measure used by consumer communications, networking companies, and digital media companies, defined as the total revenue divided by the number of subscribers.
Ad fraud typically consists of multiple fraudulent activities that occur in the app marketplace, but at a basic level, it relates to companies serving ads to fake ad inventories by leveraging ad bots or automatically refreshing pages to increase views.
App previews demonstrate the functionality, features, and user interface of an app using footage captured on a device.
App Store Optimization (ASO) is the process of improving app visibility within all app stores such as Google Play Store and App Store for iOS to increase app conversion rates.
The identification of a set of user actions or touchpoints that contribute to a specific desired outcome such as conversion, purchase, or installs and the assignment of value to each of these actions.
Attribution translates to the touchpoints along the customer journey that may have affected the purchases.
Bids, in programmatic advertising, refer to the maximum amount an advertiser is willing to spend to purchase an ad impression.
In the context of programmatic advertising, it is vital to understand that the term ‘bid’ is not always connected to auctions, despite the fact that the two of them are used frequently together in the app marketing world.
In the ad tech world, a blacklist refers to a list of websites that an advertiser doesn’t wish to purchase ad space from.
Burst campaigns for mobile app marketing is the process of aggressive media buying over a short period of time aimed at promoting the app to the largest audience possible.
A banner ad is a type of ad that can include text, simple animation, video, and a URL linking to a website to learn more about a product or service.
Standard display ads for banners ads include 728x90, 160x600, and 300x250 for digital formats to be displayed on mobile ads, video ads, native ads, social ads, connected TV, and rich media.
A real-time bidding (RTB) request is a request from a publisher’s website that asks an ad exchange or SSP to bid on an ad impression. This request is activated when a user lands on a web page that contains ad units.
When a bid request is received, advertisers choose a bid price to send this value as a bid response. The ad unit is then sold to the highest bidder within a fraction of a second.
Cost per Action, or CPA is the amount of money spent on a campaign divided by the number of actions taken by a user. CPA is an advertising payment model that considers the number of conversions that users take on that particular site.
Cost per Click (CPC) is a measure that determines the amount of money an advertiser will pay for each click generated on average.
CPC is calculated by dividing the total money spent on an advertising campaign by the number of clicks received.
Cost per Install, or CPI refers to the media buying arrangement where a certain amount of money is paid by an advertiser each time a unique user installs an app on their device.
CPI is a conversion-based payment method used by advertisers that emphasizes the action of app installation over other possible user engagements.
Cost per Mile (CPM) refers to the price an advertiser pays for serving a minimum of 1,000 ad impressions via a publisher source.
CPM is calculated by dividing the cost of running a campaign with the publisher by the number of ad impressions being delivered and then multiplying that number by 1000.
A creative asset is a type of digital media shown to the internet users to communicate a message and draw their attention to ultimately drive users to take a specific action.
Click injection is a type of mobile ad fraud technique where a click is triggered before an app is fully installed to credit the fraudster rather than the real media source or ad network.
Click spam is a type of mobile ad fraud when a fraudster executes clicks for users who haven’t attributed them and claims the credit for random installs the user had made.
Click validation required ad partners to share ad impressions to verify that each click has a matching impression. This confirms that the ad was indeed shown, preventing click fraud from encroaching a marketer’s data and stealing ad spend.
Customer Lifetime Value or CLTV is the overall value of a customer for the duration of their relationship with the company.
Daily active users (DAU) and monthly active users (MAU) are popular metrics to measure user engagement.
To measure DAU, count the total number of unique viewers either for a given month, or new and returning users.
Demand Side Platform (DSP) is a type of technology that supplies inventory buying opportunities from various sources. DSP utilized real-time bidding to access and win inventory auctions.
Data Management Platform or DMP is a data warehouse used to aggregate and target relevant audience segments.
Post aggregation, this data is easily accessible to marketers for planning, activation/modeling, and validation.
Dynamic CPM or dCPM is a transparent pricing model where every impression received is a unique price that changes based on the value of that impression.
A device ID is a series of numbers and letters that identifies every individual smartphone or tablet in the world. It is stored on a mobile device and can be retrieved easily by any app that is downloaded.
Frequency caps translate to when advertisers set the frequency at which a user is shown an ad at the flight level, with the goal of slowly promoting a brand over a long period of time.
eCPA, or Effective Cost per Action is closely related to CPA.
The only difference between the two is that eCPA is used in instances where diverse pricing models are used to calculate the cost of an ad campaign. In other words, when CPM (cost per mile), CPC (cost per click), and/or CPA are each being paid at a separate cost within the pricing model of an ad campaign.
Total cost of ad campaign/Number of actions taken = eCPA
eCPC or Effective Cost per Click is closely related to CPC (cost per click).
The term eCPC refers to the conversion of CPM and CPA into an amalgamated CPC cost by using the standard formula while factoring in the amount paid for impressions and actions.
Total cost of an ad campaign/Number of clicks received = eCPC
In app advertising, eCPM (effective cost per mile) refers to the total cost of running 1,000 ad impressions through a publisher’s website, app, or other content - particularly in instances where a myriad of different pricing models are used for those 1,000 impressions.
Calculating the price of eCPM is the same as calculating CPM - by dividing the cost of running an ad campaign by the number of impressions that are being delivered and then multiplying that number by 1,000.
Exchange bidding translates to Google’s approach to executing header bidding (programmatic bidding strategy used by publishers).
As a server-to-server auctioning model, exchange bidding allows SSPs and ad exchanges to place bids on a publisher’s inventory at the same time via Google Ad Exchange.
Fill rate refers to the amount of publisher’s available ad inventory they are able to sell - calculated as an overall percentage of how much a publisher’s ad space was sold.
Digital fingerprinting, also known as probabilistic attribution, refers to the process that advertisers sometimes use to gather information about users who have previously interacted with their ads in order to identify their unique device IDs.
IDFA or Identifier for Advertisers is a random device identifier assigned by Apple to a user’s device.
An impression is the act of an advertisement being downloaded to the target device, or website; however, the instant a user sees it is accessed by a different metric called viewability.
In-app ads refer to an ad that is served directly within a mobile app.
An in-app message refers to a message being delivered to a user directly within the app.
Incrementality measures the impact of a single variable on an individual user’s behavior.
In digital display marketing, it is most commonly used to measure the impact of a branded ad against a public service announcement (PSA) ad.
An interstitial ad is a forced full-screen ad that inhibits a user from taking any action on an app, a website, or other digital content until the ad is engaged in some way - either by taking an action or by manually closing the ad.
Key Performance Indicators or KPIs are data points that help you track progress towards business goals and identify areas for improvement.
Media buying is the process of purchasing ad space and time on digital and offline channels such as websites, radio, OOH platforms, or TV.
The number of original visits to a website by a given cookie or browser throughout the month, regardless of how often they visit.
Native ads are paid ads that match the feel and look of a website, app, social network on which the ad is displayed.
Native ads are perceived as less disruptive to the user because they are integrated into the page.
Ad agencies or companies that establish relationships with a large number of publishers to gain insight into cookie users.
The term “open auction” is the official name for the function in ad tech referred to as RTB (real-time bidding).
An overlay ad is an ad that appears overtop of a piece of content - such as video or within an app.
Unlike interstitial ads which cover the entire screen, overlay ads typically only cover a portion of the screen without fully obstructing the user’s view of the content.
Programmatic advertising is a broad term that refers to the use of software and machines to manage the automated purchasing of digital advertising online.
Programmatic direct refers to the ad transaction methods and/or agreements that originate from one-to-one negotiations between a publisher and advertiser.
Private Marketplace (PMP) is a real-time auction form of purchasing with well-defined price categories. It is exclusively available to a small number of customers.
A publisher is a website owner that has an ad inventory (ad impressions for sale).
A line item is set aside to meet certain impressions or click targets.
Real-time bidding (RTB) is the buying and selling of digital ad impressions in real-time auctions while a webpage is loading.
Ad exchanges and supply-side platforms are frequently used to enable these auctions.
Unsold inventory that isn’t required to deliver a certain amount of impressions by contract.
Post direct and premium purchasers have been exhausted, the unsold inventory is typically sold at a lower rate via programmatic buyers.
Server-side header bidding or server-to-server (S2S) header bidding is the process where the header bidding auction takes place on a server instead of within the user’s browser.
Advertisements that stick to the user’s screen even when they scroll the page. Sticky ads can help in optimizing viewability without compromising the user’s experience.
SSP or Supply-side platform is a piece of software that automates the selling of ad space.
Digital publishers utilize them to sell display and video advertisements to get the most money for their impressions.
Third-party data is the type of data that third parties collect and provide. It is gathered from a variety of sources, and then consolidated and licensed for reuse.
True CPM compares revenue to total impressions sent rather than just matched impressions, giving publishers a better understanding of the amount of money they are generating on their inventory.
True CPM = Revenue/(total impressions/1000)
The total cost of acquiring a new user for your app, website, platform, or service. This term is used in strategic marketing planning to evaluate the budget, track changes, and optimize expenditures associated with growing the audience base.
An industry standard for interactive in-stream video advertising is defined by the Interactive Advertising Bureau (IAB).
Viewability is a type of metric that indicates how long the ad was on the user’s screen. It is used to gauge the effectiveness of ad impressions.
A database that contains a list of websites that advertisers have approved. A whitelist contains information that is safe to advertise on these websites because they have a good reputation and relevant content.
The process of removing an app from the user’s mobile device or tablet.
A waterfall refers to the traditional programmatic method of ad buying.
In ad tech, “yield” refers to the amount of revenue a publisher or advertiser is able to generate.