Digital Advertising Basics

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Digital Advertising Basics Digital Advertising Terminology You Should Know

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Target Audience - The intended audience for an ad, usually defined in terms of specific demographics (age, sex, income, etc.) product purchase behavior, product usage or media usage.

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Ad impression – the count of ads which are served to a user. Ads can be requested by the user's browser (referred to as pulled ads) or they can be pushed, such as e-mailed ads.

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Viewable Impression – a metric of display and video ads which are actually viewable when served (in part, entirely, or based on other conditional parameters). According to the MRC/IAB, a Viewable Impression officially occurs when the ad content is loaded, rendered and at least 50% of the ad surface is within the visible area of a viewer’s browser window or an in-focus web page for at least 2 seconds for display and 4 seconds for video.

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Ad blocker – Software on a user’s browser which prevents advertisements from being displayed.

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Rate Card - The list of advertising prices and products and packages offered by a media company.

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Above/Below the Fold – The Fold is the line below which a user has to scroll to see content not immediately visible when a Web page loads in a browser. Ads or content display “above the fold” are visible without any end-user interaction.

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ROS or Run-of-Site - The scheduling of Internet advertising whereby ads run across an entire site, often at a lower cost to the advertiser than the purchase of specific site sub-sections.

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Ad Network – Ad networks provide an outsourced sales capability for publishers and a means to aggregate inventory and audiences from numerous sources in a single buying opportunity for media buyers.

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RON or Run-of-Network - The scheduling of Internet advertising whereby an ad network positions ads across the sites it represents at its own discretion, according to available inventory. The advertiser usually forgoes premium positioning in exchange for more advertising weight at a lower CPM.

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ROI or Return on Investment - Net profit divided by investment.

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KPI or Key Performance Indicators – Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals.

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Click-Through or Clickthrough Rate (CTR) – A ratio showing how often people who see your ad end up clicking it. For example, if you have five clicks and 1,000 impressions, then your CTR is 0.5%.

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CPM – Cost-per-thousand Media term describing the cost of 1,000 impressions. For example, a Web site that charges $1,500 per ad and reports 100,000 impressions has a CPM of $ 15. $ CPM = X 1000 Impressions

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eCPM or Effective CPM – Combined efficiency of an ad campaign based on promotional placements, paid placements, engagement metrics, etc (i.e. video views, app downloads, widget distribution, viral video adoption). Total Earnings eCPM = X 1000 Impressions

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Conversion – A conversion occurs when the user performs the specific action that the advertiser has defined as the campaign goal. Conversions are often tracked by a web beacon, called a conversion pixel.

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Conversion Rate – The percentage of users who complete a desired action (e.g., purchase or registration) compared to all users who were exposed to an online ad.

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CPL/CPA or Cost Per Lead/Action – “Cost Per” Ads are typically used by Direct Response and Lead Generation advertisers and usually handled by ad networks due to the continual optimization required to make these campaigns financially viable.

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CPE or Cost Per Engagement – Used more with social media that involves video adoption, app/widget distribution, game adoptions, etc.

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Digital Advertising Basics Digital Advertising Terminology You Should Know

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