also called online
marketing or Internet advertising or web
advertising, is a form of marketing and advertising which uses the Internet to
deliver promotional marketing messages to consumers. It includes email
marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like
other advertising media, online advertising frequently involves both a
publisher, who integrates advertisements into its online content, and an
advertiser, who provides the advertisements to be displayed on the publisher's
content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server which technologically
delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the
Following are the
set of frequently used digital and internet advertising, marketing and media terms explained in simple terms.
Ad:- For Web advertising, an ad is almost always a banner , a graphic image or set of animated images (in a
file called an animated GIF ) of a designated pixel size and byte size limit. An ad or set of ads for
a campaign is often referred to as "the creative." Banners and other
special advertising that include an interactive or visual element beyond the
usual are known as rich media .
· Ad Unit:- The smallest inventory component that represents the space on
a site where ads display.
· Creative:- The media asset associated with an ad, such as an image or
CPC:- Cost per
click, a pricing method which calculates cost based on the number of times a
user clicks on an ad.
CPA:- Cost per
action, a pricing method which calculates cost based on the number of times a
user takes action based on an ad (conversions).
CPD:- Cost per
day, a pricing model where advertisers pay on a daily basis for their ads
to be displayed on a particular website.
CPM:- Cost per
mille, a pricing method which calculates cost based on the number of
impressions (per 1000).
Conversion:- The measure of the number of times that a tracker has been
displayed that has been successfully linked to a previous creative impression
or click, according to the tracker’s rules.
Click-through rate, the percentage of impressions that results in a click
through. For example if a banner was clicked on 87 times after being shown 1000
times, it would have a CTR or click-through rate of .087 or 8.7% (87/1000 =
0.087×100 = 8.7).
platform, a platform or provider that allows publishers to manage and optimize
revenue for their inventory from multiple sources, often in real time.
Demand-side platform, a platform or provider that allows advertisers to manage
multiple ad exchange and data exchange accounts through one interface, often in
Ad slot:- The area on a web page set aside for the display of ads.
Ad tag:- A small piece of code that defines the ad space
where ads display on a website. It includes parameters that describe
the inventory advertising campaigns can target, which may in turn display ads
in the ad space.
View pixel:- It is a
1X1 image pixels. It fires(send request to server) when ad is viewed by user.
Click pixel:- A Click Pixel generates a click. When fired, CAKE will
track a click just like we do when a Unique Link is clicked on.
Conversion pixel:- A conversion pixel is generally a 1 X 1 image fired
through a short line of code which is placed on your confirmation page of thank
you page. It fires whenever any user reaches to the confirmation page which
helps in capturing data of number of converted users.
Retargeting:- It is a form of online targeted advertising by which
online advertising is targeted to consumers based on their previous Internet
actions, in situations where these actions did not result in a sale or
Ad target:- It is a type of advertising whereby advertisements are placed so as to reach consumers based on various
traits such as demographics, psychographics, behavioral variables (such as
product purchase history), and firmographics ... or other second-order
activities which serve as a proxy for these traits.
Ad rotation:- Ads are often rotated into ad spaces from a list. This is
usually done automatically by software on the Web site or at a central site
administered by an ad broker or server facility for a network of Web sites.
Ad pacing:- Ad pacing is how fast the purchased impressions are
delivered, like if the pacing is aggressive; it means the impressions are to be
delivered in a fast pace while if the pacing is governed then the impressions
are to be delivered in some pattern and
also in slow mode.
Ad capping:- Ad frequency capping is the process of limiting the number
of times an individual is exposed to a single ad or campaign. It is used for preserving ROI for CPM
campaigns, but it is also recommended for preventing users irritation which can
be against brand building objectives.
Real-time bidding, auctioning online inventory within an ad exchange. Buyers
bid for the impression based on the value of the user, whereas the seller sets
pricing floors and awards the impression to the highest bidder. The auction
process takes place in milliseconds, which is why the process is referred to as
Ad network:- An OpenX account type, which represents a business that
manages other businesses and typically contains and manages both publisher
accounts and advertiser accounts.
Ad exchange:- An ad exchange is
a technology platform that facilitates the buying and selling of media
advertising inventory from multiple ad networks.
In OpenX, an account type that represents a business with ad space to sell.
Advertiser:- In OpenX, an account type that represents a business that
runs advertising campaigns to display ads on websites.
number of unique users visited the site daily. The only requirement for a user
to be considered "active" is that they somehow view or engage with
metrics is measured by counting the number of unique users during a specific
measurement period, such as within the previous 30 days.
DMP:- DMPs is
an application interface that helps marketers, agencies and advertisers to take
control of their own first party audience and campaign data, and then measure
against the third party audience data, to make smarter and resourceful media
buying and help support all the decision related to campaign planning.
CLV:- It is a
prediction of the net profit attributed to the entire future relationship with
RFM:- It is a
marketing technique used to determine quantitatively which customers are the
best ones by examining how recently a customer has purchased (recency), how
often they purchase (frequency), and how much the customer spends (monetary).
Ad pricing:- The price that businesses pay for advertising online.
There are two main ways for it - CPM or CPC based rates. CPM stands for cost per thousand. CPC stands for cost per
click. So, in CPM based ads, you pay
per 1,000 ad impressions.
Ad campaign:- An advertising campaign is a series of advertisement messages that share a single
idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns
appear in different media channels across a specific time frame that often need
to be clearly defined.
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