This is Part 2 of the digital advertising glossary series. In Part 1, we decoded many new terms (that people just throw like a football at meetings) which will help you to speed on all things digital advertising.
Continuing Part 2 of the digital advertising glossary series, let’s jump straight back in.
Native advertising is the practice of using paid advertisements that have the look, feel, and function of the media format in which they appear. In an attempt to improve user experience, it blends seamlessly into the website content. As a result, it appears to be a natural part of the editorial flow of the page.
It is non-disruptive for the reader and catches immediate user attention. Below are native ads placement examples:
OTT is the advertising jargon for Over-the-top. The OTT advertisements are commercials that can be delivered on OTT platforms via streaming services.
OpenRTB (Real-Time Bidding)
The advertising terminology OpenRTB should not be confused with RTB(real-time bidding).
The OpenRTB protocol is adopted by Indian Advertising Bureau (IAB). It is used for communications between parties involved in media transactions via RTB. Essentially, OpenRTB aims to create a lingua franca for communication between sellers and buyers. It allows all DSPs, SSP’s and ad exchanges to use the same language for all online transactions.
A term that needs a special mention in the digital advertising glossary is “Programmatic Advertising.” It is projected to be the game-changer for digital advertising. Programmatic automates the process of buying and selling online advertising space with the help of technology and data. This means, with the introduction of programmatic publishers, advertisers or agencies don’t have to sit across to discuss ad size, rates, et. Ad buying is done through algorithms and data insights.
Programmatic media buying includes Real-time bidding (RTB), Programmatic Direct, and Private Marketplace (PMP).
Interesting Read: Programmatic Advertising Platforms in 2020: A Complete Guide
Prebid.org was created to help publishers manage their connections with a number of SSPs. Historically, each SSP had its own setup and complicated codes that were time-consuming. Prebid.js launches are simpler and improve the functioning of header bidding and lower page load times.
Interesting Read: Index Exchange Joins Hands with Prebid.Org to Deal with Industry Crisis
Real-time bidding (RTB)
Another term for the act is ‘Open Auction’and has to be a part of this digital advertising glossary. The buy and selling of digital ad inventory via real-time auctions that happen in milliseconds it takes for the web page to load.
Real-time bidding (RTB) auctions occur when advertisers (through Demand-side platforms (DSP)) buy individual impressions from publishers (via Supply-side platforms (SSP)s and Ad exchanges). It takes under 200 milliseconds from the time a bid request is placed until the ad is served in RTB. For perspective, the human eye takes 300 milliseconds to blink.
A publisher who is unable to sell off the ad inventory via a direct or premium deal with advertisers.
Supply-Side Platform (SSP)
A supply-side platform (SSP) is software used by publishers to sell their display, video, and mobile ad inventory in an automated manner via real-time (RTB) auctions. SSP enables publishers to sell their ad inventory to the best network as it aids to improve the yield optimization of the advertising space inventory. It minimizes wasted space and maximizes views.
SSP plays a key role in the RTB media transactions as it connects to ad exchanges and DSPs to sell publishers (website and app owners) ad inventory.
The third-party cookies are stored in a domain other than the currently opened website(domain). Ad-tech platforms use advertising jargon for online advertising purposes. Advertisers or technology providers use scripts or tags to place on the consumer website by, and not website owners.
As an example, news websites create first-party cookies when you visit their website. Like other publisher’s sites, the news outlet uses ads designed by other websites that create a third-party cookie and store it on your computer.
Interesting Read: End Of Third-Party Cookies, What Is There For Marketers: Takeaway!
Unique user identifier (UUID)
Adtech platforms mostly use this advertising jargon. UUID is a set of data stored in a cookie used to identify and track user actions across various platforms. UUID can be used as an alternative method to PII (personally identifiable information) such as email id or contact details to identify users.
The ad lingo ‘Viewability’ simply determines whether the digital advertisement has been viewed by a human being or not. The aim is to know if a user or a bot is viewing the ad. It will help the advertisers to measure the campaigns effectively.
The MRC (Media Rating Council) defines a video ad as “viewable” or “viewed” only if it had at least 50% pixels appear within the browser space for at least 1 second (for display ads), or 2 seconds (for video ads).
A walled garden is a closed ecosystem where the operator does not share information, technology, or data with third parties. The advertisers have limited or less access to customer data and less control over performance measurement. Examples of walled gardens are duopoly Facebook and Google.
This advertising terminology simply refers to the efforts taken by publishers and advertisers to maximize the revenue and extract the highest amount of value from ad serving efforts.
Publishers can improve yield rates through price floor adjustments, increasing the inventory value of their ads, and diversifying the advertising demand sources. Advertising yield rates can be improved by defining their target audiences precisely, develop effective bid strategies, and diversifying the supply sources.
Finally, There You Have It!
Digital advertising has plenty of advertising lingos, acronyms, and buzzwords. Our digital advertising glossary has decoded the meaning of the complex advertising jargon that is flying around all over the place. This glossary will simplify your understanding of advertising terminology.
We all know our ABCs, right?
But when it comes to understanding the complicated advertising jargon used by digital marketers, it is mindboggling. They randomly throw words, assuming we know it all.
The question remains for those who are new to the field or whose specialized roles don’t span the entire spectrum? That’s why we have compiled a digital advertising glossary of the most commonly used terms and definitions.
Digital Advertising Glossary: Beginner’s Alphabetical Guide
Whether you are an amateur or an experienced marketer, this alphabetical digital advertising glossary – will upgrade your digital skills. It will help you to understand advertising terminology that flows so easily off the tongues of our subject matter experts.
AdTech is an umbrella term for Advertising technology. It consists of software and tools used by advertisers, ad agencies, publishers, and other industry players to plan and manage their advertising or monetization.
Interesting Read: A One-stop Guide On All You Ever Need To Know About AdTech In 2020
An ‘ad exchange’ is a stock market for the online ad industry. Publishers and advertisers trade ad inventory. It is an auction-based, automated digital marketplace that allows publishers to offer their ad inventory for sale and advertisers to purchase ad inventory.
The technology that prevents ads from appearing in inappropriate contexts on publishers’ sites, which could damage the reputation or image of the brand.
Switching between multiple devices is the new way of content consumption. Campaigns that tie digital advertisements and consumers can view one campaign on multiple devices like smartphones, tablets, connected TV, and more.
The most common question asked, what value is used to determine whether your ad will show on a page and, if so, the ad’s position?
Contextual Targeting matches the ad to the page based on the content. Advertisers can target ads to the relevant groups of consumers based on their interests and has the most impact.
Demand- Side Platform is an essential platform for advertisers to buy, search, display video mobile ads. It enables advertisers to buy ad placements in real-time on the publisher websites made available by ad exchange and networks. Some of the DSP players are Amazon DSP, AdRoll Trade Desk, Xandr, Google DV360, and more.
An abbreviation for the advertising terminology Digital Out-of-Home Advertising. The concept combines the offline and the digital aspects of OOH advertising. It delivers content via digital screens like billboards, elevator screens, and more.
Effective Cost Per Mille (eCPM)
It means an effective cost per thousand impressions. (Mille refers to thousands). In online advertising, the term “impression” refers to the chance to show an advertisement to a consumer on a digital device.
eCPM is a key publisher’s metric to predict revenue for every one thousand impressions. It can be calculated not just for CPM campaigns, but for Cost Per Click(CPC) and Cost Per Lead (CPL) too. On the other hand, CPM is an advertiser metric to estimate the cost of their campaign and reach as per their budget.
eCPM = (Total ad Revenue / Total Impressions) * 1000
It is an advertising terminology that means information about customers that a company collects from its own sources. Sources for first-party data can be both- online or offline like the company’s website, social media, or surveys.
An ad lingo that has to be a part of the digital advertising glossary. An integrated strategy that addresses the entire consumer journey and incorporates objectives for each step of the funnel: awareness, consideration, and conversion.
A type of programmatic deal where a buyer directly buys inventory from the seller for a guaranteed impression and volume. The publisher agrees to deliver at a guaranteed budget price.
As defined by Digiday, Header bidding is an advanced programmatic technique wherein publishers offer inventory to multiple ad exchanges simultaneously before making calls to their ad servers. The idea is to let multiple demand sources bid on the same inventory, creating a competitive ecosystem that optimizes a publisher’s revenue. The act is also known as advance bidding or pre-bidding,
A study states that in Q2 2021, 66.7% of publishers are using header bidding to monetize their inventories. Furthermore, it reveals that the adoption of this method has generated results. 31% of total publishers witnessed an increase in their yield.
Identity Data & Resolution
The advertising jargon refers to the process of connecting different identifiers like email address, mobile number, customer ID, account username, or more from multiple platforms and devices to a single identity. It helps brands to get a cohesive and omnichannel view of a consumer. It enables brands to deliver people-based targeting, personalization, and measurement.
Last Click Attribution
This method identifies the last touchpoint a customer engaged with or clicked before making a purchase, and gives that touchpoint all credit for the conversion.
Long-Tail Ad Inventory
Ad inventory obtained from less popular or lesser-known publishers. It focuses on niche audiences.
The advertising jargon is also known as Marketing Technology. It is a software or tech tool used to perform marketing activities. Marketers plan and execute the campaigns, analyze the results, and measure the performance of the campaign.
“Every piece of technology a marketer uses to reach a potential customer is martech.”
~ John Koetsier, Journalist (Source)
Mobile Advertising Identifiers(MAIDs)
Unique identifiers provided by mobile device operating system. It is used by marketers to track user activities for advertising purposes. Apple has changed the usage of mobile identifiers (IDFA) on Apple devices where users are asked for permission for ad targeting. Recently, in the new IOS update, users will receive prompts from the Apple App Store asking permission to serve ‘Personalized Ads’ which was earlier enabled by default.
This is Part 1 of the Digital Advertising glossary series. Wait there! There are ample buzzwords and interesting advertising terminologies that will be decoded in the next part.
You can read part 2 – here!