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Looking to learn the language of online advertising? It can be a challenge to master all the specific terms and acronyms that digital marketers use every day. We’ve compiled the following glossary of vital vocabulary and definitions so you can speak the language of digital advertising fluently and confidently.
Action rate (AR) – The probability that a user will take an action from the moment they click (or view) an ad. Also referred to as Conversion Rate.
Attribute – Consists of the descriptive meta data associated with a campaign, such as campaign name, campaign status, targeting, creative elements and dates.
Click through – Any action that occurred after a user clicked on an ad.
Click through rate (CTR) – The percentage of people visiting a web page who access a hyperlink text from a particular advertisement.
Context – How and where you’ll display ads for targeted users, such as device, connectivity, or delivery location.
Conversion – The user behavior that you wish to track and optimize your campaign towards.
Conversion event – The pixel that fires when a user completes an action on your site or mobile app.
Cost per action (CPA) – Ad bid type where you pay for a specified action like registration, newsletter sign-up, etc. Learn more
Cost per click (CPC) – Ad bid type where you pay for the amount of people who click on your ad. Read more
Cost per install (CPI) – Ad bid type where you pay for each installation that results from users seeing your ad.
Cost per 1,000 impressions (CPM) – Ad bid type where you pay based on the number of times your ad is shown.
Creative – Specifies what users will see upon viewing an ad, including images and copy.
Daily active users (DAU) – How many unique users visit a site or app daily. This metric is used to measure the success of a website or app.
Lifetime Value (LTV) – The revenue or associated value a customer generates for your business over time.
Mobile app installs (MAI) – How many unique users have downloaded your mobile app. This metric is used to measure how successful an ad is at generating downloads.
Optimized cost per 1,000 impressions (oCPM) – Similar ad bid type to CPM, where your ad will be displayed to users most likely to complete your specific defined action. See more
Optimized budgeting – Automatically limits and then increases budget as more is learned about an ad’s performance.
Pixel – Also known as a Tracking Pixel, this refers to a 1 pixel by 1 pixel image tag that is hard-coded into your website or app so it can track conversion events like registrations, products viewed or links clicked. Read more
Placement – An individual ad within the marketplace that will have a unique image, title, body, destination URL and targeting parameters.
Predictive Lifetime Value (PLTV) – A prediction of the revenue or associated value a customer generates over time. Learn more
Return on ad spend (ROAS) – A way to measure the value of your online marketing campaigns.
Real time bidding (RTB) – How advertising inventory is bought and sold through a programmatic real-time auction.
Software developer kit (SDK) – A set of programs that enables programmers to develop applications for specific platforms. See more
Stop Loss – Evaluates and pauses down ads that are exceeding your target CPA or not meeting your yield goal. Read more
Value per action (VPA) – How an advertiser values a given action like installs, registrations or downloads.
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