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Glossary of Advertising Terms

Glossary of Advertising Terms

Advertising Terms

Term Definition
Action A measure in audio advertising indicating the number of times listeners took a specific action after hearing an ad.
Ad Copy The text of an advertisement. Good ad copy effectively communicates the value proposition and call to action to the target audience.
Ad Creative The visual elements of an advertisement, including images, videos, and overall design.
Ad Exchange A digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time bidding.
Ad Exposure The number of times an audience sees an advertisement.
Ad Fraud Illegitimate advertising practices intended to generate revenue by artificially inflating ad performance metrics.
Ad Impression A measure of how often an ad is displayed, whether clicked on or not.
Ad Inventory The total amount of ad space a publisher has available to sell to advertisers.
Ad Network A company that connects advertisers to websites that want to host advertisements.
Ad Positioning The placement of an advertisement on a page or within content, which can affect visibility and performance.
Ad Rotation The practice of rotating different advertisements in a single ad space to test effectiveness or to avoid ad fatigue.
Ad Servers Technologies used by advertisers to store, manage, and serve their advertising campaigns.
Ad Tag A snippet of code that is placed on a website to display advertisements.
Ad Testing The process of evaluating the effectiveness of an ad before fully launching it.
Ad Tracking The process of collecting data and insights on the performance of an advertisement.
Addressable TV This refers to the technology enabling different ads to be shown to different households, even though they are watching the same television program.
Affiliate Marketing A marketing arrangement where an online retailer pays commission to an external website for traffic or sales generated from its referrals.
Agency A business that provides advertising and marketing services to clients, acting as an intermediary between advertisers and media companies.
Attribution Model A rule, or set of rules, that determines how credit for sales and conversions is assigned to touchpoints in conversion paths.
Audience Segmentation The process of dividing a broad consumer or business market into sub-groups based on shared characteristics.
Banner Ads Rectangular digital advertisements placed typically at the top, side, or bottom of a web page.
Behavioral Targeting A technique used by online advertisers to present targeted ads to consumers by collecting information about their browsing behavior.
Bounce Rate The percentage of visitors to a particular website who navigate away from the site after viewing only one page.
Brand Awareness The extent to which consumers are familiar with the qualities or image of a particular brand.
Brand Equity The value derived from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.
Branding The process of creating a unique image and identity for a product or service in the consumer’s mind.
Call To Action (CTA) An instruction within an advertisement designed to prompt an immediate response from the audience.
Campaign A series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).
Churn Rate The percentage of subscribers to a service who discontinue their subscriptions within a given time period.
Click Fraud The practice of repeatedly clicking on an advertisement hosted on a website with the intention of generating revenue for the host website or draining revenue from the advertiser.
Clickbait A sensationalized headline designed to attract clicks but often not delivering relevant content.
Click-Through-Rate (CTR) The ratio of users who click on an advertisement to the total number of users who view the ad.
Content Marketing A marketing technique of creating and distributing valuable, relevant, and consistent content to attract and acquire a clearly defined audience.
Contextual Data Information pertaining to the content of a web page, used for contextually relevant advertising.
Conversion The action of a user fulfilling a desired outcome, like making a purchase or signing up, as a result of an advertising campaign.
Conversion Rate The percentage of visitors to a website who complete a desired goal (a conversion) out of the total number of visitors.
Cookie A small file saved on people’s computers to help store preferences and other information that’s used on webpages that they visit.
Cost Per Acquisition (CPA) The price an advertiser pays for each acquisition, such as a sale, click, or form submit, as a result of the advertisement.
Cost Per Click (CPC) The price paid by an advertiser for a single click on its advertisement.
Cost Per Engagement (CPE) A pricing model where advertisers pay for each specified interaction (like a click, form submit, or social media share).
Cost Per Lead (CPL) The price an advertiser pays for each lead generated from an advertisement.
Cost Per Thousand (CPM) The cost incurred for every thousand impressions an advertisement receives.
Creative Optimization Adjusting creative elements of an ad, like images or copy, to improve performance.
Cross-Platform Advertising across multiple digital and non-digital platforms to maximize reach and impact.
Currency Refers to the standard units or metrics used in media buying and selling transactions.
Customer Acquisition Cost (CAC) The cost associated in convincing a customer to buy a product/service.
Data Providers Companies that compile and maintain internet user profiles for targeted advertising purposes.
Dayparting The practice of dividing the day into several parts and running advertisements during a specific part of the day to target specific audiences.
Demand-Side Platform (DSP) A system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.
Demographic Targeting A targeting strategy where ads are shown to users based on demographic attributes like age, gender, income, etc.
Direct Response Advertising A type of advertising designed to elicit an immediate response and encourage a prompt action by the consumer.
Display Advertising This type of advertising involves placing visual ads on websites, including banner ads and rich media.
Drip Campaign A communication strategy that sends, or “drips,” a pre-written set of messages to customers or prospects over time.
Dynamic Ads Advertisements that automatically adjust their content and display based on specific user profiles or behaviors.
Engagement Rate A metric that measures the level of engagement that a piece of created content is receiving from an audience.
Flight Dates The scheduled start and end dates for an advertising campaign.
Frequency A metric indicating the average number of times an ad is presented to the audience within a specified period.
Geo-Targeting Delivering ads to consumers based on their geographic location.
Geofencing Using GPS technology to create a virtual geographic boundary, enabling software to trigger a response when a mobile device enters or leaves a particular area.
Gross Rating Point (GRP) A standard measure in advertising denoting the percentage of the target audience reached by an advertisement.
HTML5 The fifth version of the HTML standard, used for structuring and presenting content on the internet.
Impression A single instance of an online advertisement being displayed.
Inbound Marketing A marketing methodology that is designed to draw visitors and potential customers in, rather than outwardly pushing a brand, product or service.
Influencer Marketing A form of marketing in which focus is placed on influential people rather than the target market as a whole on social media.
Integrated Marketing Communications (IMC) A strategy that integrates various promotional tools and communications/marketing strategies to provide clarity, consistency, and maximum communication impact.
Integrated Segments This concept involves combining diverse audience segments, typically based on shared preferences or behaviors, for more comprehensive advertising strategies.
Interstitial Ads Full-page ads that appear before the actual webpage.
Key Performance Indicator (KPI) A measurable value that demonstrates how effectively a campaign achieves key business objectives.
Landing Page The specific web page a user is directed to after clicking on an online advertisement.
Lead Generation The initiation of consumer interest or inquiry into products or services of a business.
Lift The increase in a specific metric, such as sales or website traffic, attributable to an advertising campaign.
Lookalike Audience A way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.
Market Penetration The percentage of a target market that consumes a product or service.
Media Buying The procurement of media space and time for displaying ad creatives.
Media Mix The combination of communication channels your business uses to meet its marketing objectives.
Native Advertising A type of advertising that matches the form and function of the platform upon which it appears.
Omni-channel Marketing A multi-channel sales approach that provides the customer with an integrated customer experience.
Opt-In A user’s consent given to a company to use their data for specified purposes, often for targeted advertising.
Organic Traffic Internet traffic that comes from searches on search engines like Google, where the business hasn’t paid for ads.
Pay-Per-Click (PPC) A model of internet marketing in which advertisers pay a fee each time one of their ads is clicked.
Pay-Per-Impression (PPI) An advertising model in which advertisers pay based on how many times their advertisement is shown.
Persona A semi-fictional representation of your ideal customer based on market research and real data about your existing customers.
Pixel Tracking A method used to track user behavior on websites using a pixel, a tiny image embedded in webpages.
Product Placement This is a strategic placement of a product within entertainment media, where the product is integrated into the storyline of a show or film, often in exchange for a fee.
Programmatic Advertising The use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations, and manual insertion orders.
Programmatic Buying The process of executing media buys in an automated fashion through digital platforms such as exchanges, trading desks, and demand-side platforms (DSPs).
Quality Score In online advertising, it’s a measure used by search engines that influences ad rank and cost per click of ads.
Rating This term denotes the average number of viewers of a television program, calculated per minute.
Reach The total number of different people exposed to an advertisement.
Real-Time Bidding An automated, instantaneous auction process for buying and selling online ad impressions.
Remnant Advertising space that remains unsold and is typically available at a reduced rate.
Retargeting A technique where advertisers target users who have previously interacted with their brand or website, aiming to re-engage them.
Return on Ad Spend (ROAS) A marketing metric that measures the efficacy of a digital advertising campaign.
Rich Media Interactive digital advertisements that offer various forms of engagement like videos, games, or other interactive elements.
Run-Of-Network An ad buying option where ads are placed across various websites within a network, rather than on specific sites.
Sales Funnel The process that companies use to guide consumers through a buying process, from the first contact to the final sale.
Scatter Refers to the process where television advertising space, not sold during the upfront sales period, is bought and sold.
Search Engine Marketing (SEM) A form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages primarily through paid advertising.
Search Engine Optimization (SEO) The process of optimizing a website to rank higher in search engine results pages, thereby increasing the amount of organic (or free) traffic the site receives.
Share This metric indicates the proportion of a target audience that has been exposed to a particular media channel or advertisement.
Share of Voice (SOV) The proportion of advertising presence a brand has compared to its competitors
Specs Specifications that detail the technical requirements, like file size and format, for ad creatives.
Split Testing (A/B Testing) Comparing two versions of a webpage or app against each other to determine which one performs better.
Sponsored Content A form of content marketing where brands pay for the creation and distribution of content that resembles the publisher’s native content.
Spot Length This term specifies the duration of a commercial advertisement, typically measured in seconds.
Social Media Marketing (SMM) The use of social media platforms and websites to promote a product or service.
Static Refers to non-animated, still image-based advertisements.
Target Market The specific group of consumers most likely to want your product or service, and therefore, the group of people who should see your ad campaigns.
Unique Selling Proposition (USP) A factor that differentiates a product from its competitors, such as the lowest cost, the highest quality, or the first-ever product of its kind.
Upfront An event in the television industry where a network previews its upcoming programs to advertisers for early ad sales.
User Experience (UX) A person’s emotions and attitudes about using a particular product, system or service.
Value Proposition An innovation, service, or feature intended to make a product or company attractive to customers.
Viewability A metric to assess whether an online advertisement is actually viewable on a user’s screen.
Whitelisting The practice of allowing certain ads to be displayed on a website, bypassing ad blockers or other limitations.

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