Real Time Bidding (RTB) Refers to the means by which ad inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, similar to financial markets.Imagine an ebay system but for buying and selling impressionsA large quantity of inventory online is available through the RTB model
Ad NetworkThe key function of an ad network is aggregation of ad space supply from publishers and matching it with advertiser demand. Ad Networks many times focus on a specific category of sites, eg, football. A true middle man that connects websites that want to sell inventory with those that want to buy it.The oldest model for the buying and selling of mass quantities of inventory online
Ad ExchangeAn ad exchange is a technology platform that facilitate the bidded buying and selling of online media advertising inventory from multiple ad networks. Basically a huge pool of impressions available
The group with the largest availability of inventory in the digital media landscape
Private DealsAn agreement with a particular exchange or specific site to run campaigns on. Private deals are usually done to access inventory not readily available on the open exchanges.Private deals are the opposite of bidding or going to auction. In this case you would negotiate directly and agree on a price before starting the campaign
Private Market PlaceUsually a network that grants access contingent on a rate agreed upon. The most common is a floor price for biddingImagine a supermarket that let's you shop only after you get permission and agree to a minimum price you will pay for goods.
Programmatic DirectA deal reached with a particular site or property where you agree to run on a fixed price and given guarantees that your campaign will be given priority and usually better placement.Imagine a supermarket that says they will give you the best of everything they have but you have to pay a fixed price for it (usually higher than all others) and guarantee you will get everything on your listSometimes to referred to as "programmatic guaranteed"
First look inventoryInventory that is given priority to an advertiser , before anyone else. Getting first dibs on the inventory you want to buy, usually happens in a private or direct deal
Demand side platform (DSP)Technology that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.It is like having access to a control center for the internet where you can pick and choose what inventory you want to buy.A "trader" will more than likely use a DSP to manage their campaigns
Supply Side Platform (SSP)A technology platform with the single mission of enabling publishers to manage their advertising impression inventory and maximize revenue from digital media.An automated salesman for your website's inventory
Data Management Platform (DMP)A warehouse where all the data for your campaign is kept, analysed, profiled, and made available for use in other campaigns. Very similar to a database of emails, wherein they are collected and can be
Second Price AuctionAn auction format in which the bidder who offers to pay the highest price pays only the price of the second highest bidder. This system is used in most RTB ecosystems. For example if I bid $10 cpm, but in order to win the impression I only need $1.25, I will pay $1.25.
Cookie StoringCollecting cookies of the visitors to a webpage in order to retarget, count, and analyze in order to improve performance and measure activity.You know how rewards cards at retail locations keep track of your visits and what you buy? Cookies work the same way except they expire sooner.
TagsPieces of code that are added to a page that help monitor activity, collect data, and communicates with the banners serving the ads. Container tags reside on webpages and usually contain pixels from different advertisers.Tags and pixels are like the odometer and speedomoter of a car. Without them you won't know how fast you're going or how far you've traveled.
PixelPiece of code placed on a web page or embedded in a tag (called piggybacking) that collects information often used later in the campaign for data or retargetingThink of a check out lane in the supermarket ans how it scans each item purchased or passed through. A pixel works in a similar way on a website.There can be pixels on multiple pages for example on the homepage and the thank you page after purchasing an item.
Ad ServerAd servers are divided into two types: Publisher ad servers and advertiser (or third party) ad servers. The publisher uses adserving technology to serve ads that are sold online.
Brand Safety TechnologyTechnology is used to classify the content of webpages and to allow advertisers to avoid running their campaigns on pages which carry content they deem to be ‰Û÷negative‰Ûª for their brand.Similar to parental controls on a tv. Only serve on content you feel safe in.
Post ViewAn action after having viewed an ad-usually refers to conversionsIf after having seen a commercial you go and buy the product this is post viewMost conversions will be post view
Post ClickAn action after having clicked an ad-usually refers to conversionsYou see an ad and click on it, then buy immediately, this is post click
Post WindowThe number of days after either a view or click a conversion is attributedIf you go to a car dealer, look at a car and decide 7 days later to buy, your "post visit" conversion window was 7 days.This will vary depending on vertical can be anywhere from 1-90 days testing should be done.
Contextual TargetingA form of targeted advertising for advertisements appearing on websites or other media, such as content displayed in mobile browsers. The advertisements themselves are selected and served by automated systems based on the content displayed to the user.Imagine running an ad in a magazine that is placed next to an article about cars. That would be a contextually relevant ad if the advertiser is looking to be near automotive content.
Behavioral Data SegmentsComprises a range of technologies and techniques used by online website publishers and advertisers aimed at increasing the effectiveness of advertising using user web-browsing behavior information. In particular, "behavioral targeting uses information collected from an individual‰Ûªs web-browsing behavior (e.g., the pages that they have visited or the searches they have conducted) to select advertisements to display".[1]
Imagine a dating site, where you can pick and choose the characteristics of who you are likely interested in, but in this case it is open for targeting online anywhere, not just in one site.
ProspectingA prospecting campaign seeks to add scale and new users to a campaign usually to retarget down the line. .
Prospecting is like going door to door trying to find someone interested in your product
RetargetingA 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 conversion, or other desired action.If the internet were a car dealership, retargeting would be the salesman that follows you around. Slightly annoying but highly effective.
1st Party DataAny data belonging to you. An example would be your website visitors or data. Another is a CRM of emails from your users.The most valuable type of data
2nd Party DataData belonging to another advertiser which you have access to and can use. Imagine a sort of joint ventureValuable, but not as much as first party
3rd Party DataData usually bought from companies that buy and sell data (3rd parties) as an advertiser you may not know the source. 3rd party data is categorized into "segments" such as intent, interest, past purchases, and more. 3rd party data quality is hit or miss
Display adsCommanly known as banner adsSimilar to ads in a magazine, but online -applies to desktop, mobile, and tabletsCommon formats -300x250, 728x90, 160x600
Pre-roll Video adsAds that play before videosThink of a commercial on tv, but online-applies to desktop, mobile, and tabletsCommon formats -15 sec, 30 second videos
OutstreamVideo ads that do not have video content before or after. Usually you will find them embedded in articles and will only play once they are in viewThink of a commercial on tv, but online-applies to desktop, mobile, and tabletsCommon formats -15 sec, 30 second videos
Native AdvertisingAny format meant to look like the content on the site. It's been around in various ways for a long time but has recently been in the spotlight again.Think of a commercial on tv, but online-applies to desktop, mobile, and tabletsFormas vary but usually include text and images
Pricing Model
CPMCost per 1,000 impressionsThe cost of people viewing your ad 1000 times onlineIs the standard of how most online media is sold
CPCCost per clickWhen ever some clicks an ad onlineAn older standard for selling media online
CPVCost per viewWhen ever someone views your pre-roll video ad once and watches all the way throughWhen buying on a CPV basis it is usually only counted for users who finish 100% of the pre-roll ad
CPCVCost Per Completed View
Measurement / Metrics
CTRClick through rateThe rate of people that click on an ad vs. impressions after seeing itIf someone saw an ad 1000 times but clicked in it once, the CTR would be 0.10%
ImpressionWhen a page loads once and the banner is shownThink of viewing one page in a magazine
Unique visitorsOne person using a unique session that
accesses a website
When a new person picks up a magazine, that is a unique visitEach time the user accesses the website they still only count as one person, unless they have cleared their cookies
Conversion RateThe rate of leads or sales vs. visits to a siteIf a door to door salesman visits 10 houses and makes a sale in 1 house his conversion rate would be 10%Usually measured in percentages
Above/ Below the foldWhere an ad first appears on the screenIf you look at a newspaper and see an ad on the top, it is above the fold.If you have to open and look at the bottom half it is below the fold.For branding campaigns above the fold generally produces better results
ViewabilityThe rate of ads served vs the amount of ads seenIf you drive by 10 billboards but only see 5, the rate of viewability is 50%
View RateThe rate an ad (ususally video) is seenIf a 30 sec commercial comes on and you stop watching after 15 secs, the view rate is 50%Considered a major KPI for online video campaigns
CPACost Per AcquisitionThe amount of advertising cost needed to get a sale, booking, or other leadUsually, the lower the CPA the better
KPIKey Performance IndicatorHow a campaign's success is measuredKPI's can be measured ina variety of ways, for example, ROI, CTR, CPA, and Reach among others
FrequencyThe amount of times that a unique user sees the ad in a specified timeIf you look at the same page twice in the same magazine, the ads on that page have a frequency of 2Measuring frequence is key-too much and over-exposure will have a negative impact. Too liitle and your message will be underserved
ReachNumber of people reached with a campaignIf a magazine has 10,000 subscribers the reach is 10,000+Geographically, reach is usually measured in one of two ways. 1. total population 2. online penetration (people with internet service)
ROIReturn on investThe rate you make back in sales after subtracting the advertising costsUsually the higher the ROI, the better the performance
ROASReturn on Ad SpendRevenue/ SpendIf I spent $1,000 on PPC and generated $4,000 in revenue, my ROAS for paid search is $4:1. ($4,000/$1,000= $4)
Win RateThe win rate of your bidsThe number of impressions you win when you bid vs the number of impressions you bid onIf your win rate is small, your bid price may be too low and your campaign may have limited traffic as a result