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Digital Advertising Glossary

Display Advertising

A digital advertising format where graphic ads are shown on a web page. The term originated in newspapers, and the principles still apply.Display ads can be graphics, videos, interactive images (a quiz or a game), and expandable.

Audience

The total number of people that have been exposed to or could possibly be exposed to an ad during any specific time period.

Targeting

Delivering ads to a pre-selected audience based on various attributes, such as geography, demographics, psychographics, web browsing behavior and past purchases.

Click

The action taken when a user interacts with an ad by either clicking on it with their mouse or by pressing enter on their keyboard.

Impressions

The number of times an ad has been served, regardless of whether the user has actually seen or interacted with the ad in any way.

Click-through Rate (CTR)

Expressed as a percentage of total impressions, this statistic shows how often people who are served an ad end up clicking on it.An ad’s CTR is calculated by dividing the number of clicks an ad received by the number of times it’s been served, then converting that into a percentage. For example, if an ad received 5 clicks and was shown 1000 times, the CTR is 0.5%. The higher the CTR on an ad, the better it’s performing.

Cost per Thousand (CPM)

Retargeting/Remarketing

Serving ads to people who have previously visited your website.

First Party Data

First party data is data that is collected directly from your customers, such as name, email address, behavioral characteristics and other types of demographic information. Since it comes directly from your customers or audience, it is generally considered the most valuable type of data a marketer can use. Not only is it the most valuable, it is available to you at no cost making it very cost effective.

Geographic Targeting

Selecting an audience for a campaign based on zip codes, designated marketing area (DMA), cities, states and countries.

Cost per Click (CPC)

How much an advertiser pays, on average, for each ad click. CPC is calculated by dividing the total amount spent on a campaign by the number of clicks generated.

Cross-Device Targeting

Serving the same buyer targeted ads across multiple devices.Cross-device targeting allows advertisers to reach their audiences in a sequential, repetitive manner regardless of the device they’re on, whether it’s a tablet, desktop or smartphone. This has a similar effect to the old-school tactics of gaining reach and frequency through using a range of channels such as radio + newspaper + billboards + direct mail.

Programmatic Media Buying

An automated method of buying media which ensures that advertisers are reaching the right person, at the right time, in the right place. The ads are bought based on a set of parameters predefined by the company placing the ads. Programmatic advertising uses data to make decisions about which ads to buy in real time, which improves efficiencies and increases the effectiveness of the ads.

Reach

The total number of people who see your message. One person who is served your ad five times and clicks on it once yields a reach of 1, 5 impressions, and a click-through rate of 20%.

Ad Exchange

A technology-facilitated marketplace that allows Internet publishers and advertisers to buy and sell advertising inventory in real-time auctions.Ad exchanges are a departure from the historical method of buying ad inventory, where advertisers and publishers would enter price negotiations in order to show ads on a particular website. With an ad exchange, an auction is conducted in real-time, providing instantaneous bidding for ad space that’s available across the Internet.