The digital advertising industry is jargon-heavy and can feel like a foreign language at times. Here are a few definitions that are important to know.
A technology-driven platform that facilitates the buying and selling of media advertising inventory from multiple ad networks. Prices are determined through bidding.
When someone engages with the ad once it is displayed on one of their devices, with the intent of visiting the website and finding out more.
Cost Per Mille (CPM)
Also called cost per thousand – commonly used measurement in advertising that measures the cost per every 1,000 impressions delivered.
Call To Action (CTA)
Instruction to the audience to provoke an immediate response, usually with an imperative verb such as “click here”.
Click Through Rate (CTR)
Equated in a percentage by: (clicks / impressions) x 100%
A virtual geographic boundary, that enables software to trigger a response when a mobile device enters or leaves a particular area.
A single display of a particular ad on a web page. Some advertising fees are based on this measurement.
The total amount of impressions available in a region.
Ad buying referring to the use of software to purchase digital advertising, as opposed to the traditional buying process, programmatic uses RTB to sell and purchase ad space.
Real Time Bidding (RTB)
Means by which advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction, similar to financial markets.