To understand digital advertising, you must know about the digital advertising terms and their definitions. Here, I have shared 30+ important digital advertising terms and their definitions. These terms will help you to understand digital advertising concepts.
Digital Advertising Terms and Definitions
- What is Digital Marketing?
- What is Digital Advertising?
- What is an impression?
- What are clicks?
- What is action or conversion?
- What is the conversion window?
- What is CTA (Click Through Action)?
- What is VTA (Click Through Action)?
- What is Ad Network?
- Who is called an Advertiser in Digital Marketing?
- What is Demand Side Platform?
- What is Supply Side Platform?
- What is meant by Agency?
- What is CPM? How to Calculate CPM?
- What is CTR? How to Calculate CTR?
- What is CPC? How to Calculate CPC?
- What is CPA? How to Calculate CPA?
- What is CPL?
- What is CPE (Cost Per Engagement)?
- What is ROI? How to Calculate ROI?
- What is Cookie?
- What does Landing Page mean?
- What is Remarketing in digital advertising?
- What is Real Time Bidding?
- What is creative/banner in digital advertising?
- What Is Ad?
- What Is Ad Auction?
What is Digital Marketing?
Digital Marketing is the single term that is used to refer to all the marketing efforts using internet technologies. Such as Blogging, Content Making, Web Design, Digital Advertising, Search Advertising, Social Media Advertising, and any other form of marketing efforts that are helpful in reaching customers. 7 Clear Reasons Why Marketers Need Digital Advertising
What is Digital Advertising?
Digital Advertising is one type of digital marketing strategy where businesses use Internet technologies to deliver their promotional advertisements to audiences. Simply, if you see any advertisements on the internet (website, mobile app, social media, search engine) is called Digital Advertising.
What is an impression?
Impression is the number – how many times an ad is fetched from the ad server and displayed on the web page. It doesn’t matter whether it is viewed by the user or not.
It is the number that describes how many times the ad preview is displayed to the user.
What are clicks?
Click is the number, how many times a user clicks the ad. Also note that, if a user clicks an ad more than one time it can’t be counted more than once. Ad Tech companies have the technology to deduplicate multiple clicks.
What is action or conversion?
Action is the number, how many times a user makes the desired action after viewing the advertisement. Such as visiting a landing page, booking a room, registering a form, installing the app, etc. In digital advertising, the actions can be divided into two types based on when the actions happened.
CTA (Click Through Action) : If a user makes the desired action after clicking the ad considered as CTA.
VTA (View Through Action) : If a user makes the desired action after viewing the ad considered as VTA.
What is the conversion window?
Conversion Window or Action Association Window is the option that directs the system to record the action when it happens only on a certain day’s cap.
Let’s say, if you kept the click association window as 7 days, sometimes users click the ad and close the landing page without doing any desired action. The same user who clicked our ad revisits the landing page again and does the desired action within 7 days then the action is recorded as Click Thorugh Action. If the user comes back on the 8th day after he clicked the ad then it won’t be recorded as CTA.
VTA (View Through Action) means if any of the users who have seen your ad revisit the landing page within the declared days and make the desired action is counted as VTA.
Normally, campaign managers follow a 7-day conversion window for CTA and a 30-day conversion window for VTA.
What is CTA (Click Through Action)?
Users take action directly by clicking the advertisement or just clicking an ad and revisiting the advertiser page again within the time period mentioned by the advertiser and taking an action. For example, users watch the t-shirt advertisement and click the advertisement but do not make an order. The same user revisits the landing page directly and makes an order means that action is considered a Click Through Action.
What is VTA (Click Through Action)?
The user makes an action after viewing the advertisement called VTA. Advertisers can set a window for recording VTA actions like 7 days, 30 days, etc. For example, users viewed an advertisement and then left without doing an action. If the same user directly goes to the advertiser page and makes an action within the time period of 7 days or 30 days etc then this action is considered a VTA action.
What is an Ad Network?
Website or Group of Websites, App or Group of App where advertisements can appear is called Ad Network. Also, you can call the Ad Network as Publisher. For example, Google Search Ad Network, Google Display Ad Network
Who is called an Advertiser in Digital Marketing?
Those who want to show the advertisement on a website or app are called Advertisers. For example, Kia Motors, Moist Diane, etc.
What is a Demand Side Platform?
Simply we can tell “DSP is a Software that has the automatic buying capability to buy advertising spaces for advertisers. DSP supports real-time bidding [Programmatic Bidding]. DSPs are commonly used by advertisers to buy ad inventories in an automatic way.
Through DSP, advertisers can get access to inventories available in many SSPs, Ad Exchanges, and Ad Networks. Also, DSPs are providing many features to the advertiser to reach potential customers. The advertisers can target a particular group of audiences, and apply other conditions to purchase ad space using demand side platforms. Demand side platforms are capable of providing performance reports.
DSP never purchases any inventory for itself. Instead, it acts as an interface, and with this interface advertisers can access many inventories. So Demand Side Platform can be called as Advertiser Side Platform.
Read more about DSP here : What is Demand Side Platform? How Does It Work?
What is Supply Side Platform?
We can tell “SSP is software, publishers use this software to manage & sell their ad inventory in an automatic way. By using SSP, publisher can serve display, video, native ads on their websites, Apps”. Demand Side Platforms available to help the advertisers and Server Side Platforms are available to help the publishers. Like DSP, SSP also has many features that would be helpful for the publishers. By managing their campaign in SSP, they can block any particular ad or advertisers or control the frequency or bid rate and more.
Read more about SSP here : What is Supply Side Platform (SSP)? How Does It Work?
What is meant by Agency?
The agency is an organization where advertisers can get all parts of Ad Tech Services. Larger advertisers can themselves get all parts of ad tech services but it is difficult for new or small advertisers. They reach out agency and they will guide the advertisers to do digital marketing for their businesses. One agency can have multiple advertisers. Based on the advertiser’s requirements and budget, they will create media plans and run campaigns on different platforms.
What is CPM? How to Calculate CPM?
CPM means “Cost Per Mille or Cost Per Thousand Impressions”. How much an advertiser needs to pay for 1000 impressions is called CPM. For Example, advertisers kept the CPM at $3 in their campaign means advertisers are willing to pay $3 for 1000 impressions served from the campaign.
CPM = Media Cost/Impressions * 1000
What is CTR? How to Calculate CTR?
Click Through Rate is the percentage that how many clicks your ad receives divided by how many impressions your ad receives. The formula for CTR is, CTR = Sum(Clicks)/Sum(Impressions). CTR should be measured in percentage.
Many advertisers measure the campaign performance by CTR. For Search 1.90% is a good CTR and for display 0.30% – 0.35% is a good CTR.
What is CPC? How to Calculate CPC?
CPC stands for Cost Per Click. CPC is the amount that is spent by the advertiser for one click.
CPC = Media Cost/Clicks
What is CPA? How to Calculate CPA?
Cost Per Acquisition or Cost Per Action is the amount that is spent by the advertiser to acquire an action.
CPA = Media Cost/Actions
What is CPL?
CPL helps to understand the cost spent to acquire one lead. Usually, submitting a Contact Us form, purchasing products, downloading apps, subscribing to newsletters, etc considered a lead.
CPL = Total Spend/Total Leads
What is CPE (Cost Per Engagement)?
CPE is a new metric in digital advertising that helps to measure the cost per engagement. In general, the engagement means any interaction with the content. It may be a like, share, comment, follow, play game, etc.
CPE = Total Spend/Total Measured Engagement
What is ROI? How to Calculate ROI?
ROI stands for Return On Investment. How much revenue is generated from the campaign is called the ROI of the campaign.
For example, if you promote your business by spending $100 and your business generates $300 means your net profit is $200.
ROI = (Amount Gained – Amount Spent)/Amount Spent * 100
ROI = (300-100)/100 *100
ROI = 200/100*100
ROI = $200
What is a Cookie?
A cookie is a small text file. When a user visits a website, the web server instructs the browser to store this piece of code in the user’s device. When the user revisits the same page again the browser first looks at the local directory and sends the cookie information to the web server. Web Servers alter the content based on the cookie information. In digital marketing, cookies play a major role in understanding the users.
What does Landing Page mean?
The user lands the page after clicking the ad is called a “Landing Page”.
What is Remarketing in digital advertising?
Remarketing or Retargeting is a concept that allows advertisers to show an advertisement to the user who already visited the advertiser’s site or users who have already interacted with the advertiser’s site.
What is Real-Time Bidding?
Real-Time Bidding (RTB) is a subcategory of programmatic buying. Real-Time Bidding is an auction process to decide which advertiser’s ad needs to be displayed on a particular ad slot. 90% of the programmatic buying happens through Real Time Bidding.
Read more about RTB here : What Is Real Time Bidding? How Does Real Time Bidding Work?
What is creative/banner in digital advertising?
Various forms of digital advertisement are called Banner or Creative. It can be various sizes of images, Various duration videos, Various duration Audio, Combined image, and text, etc.
Important Banner Sizes and its names :
300×250 Medium Rectangle
728×90 Leaderboard
160×600 Wide Skyscraper
300×600 Half Page
970×250 Billboard
336×280 Large Rectangle
468×60 Banner
234×60 Half Banner
120×600 Skyscraper
120×240 Vertical Banner
300×1050 Portrait
970×90 Large Leaderboard
250×250 Square
200×200 Small Square
180×150 Small Rectangle
125×125 Button
320×50 Mobile Leaderboard
320×320 Mobile Full Page Flex
320×100 Large Mobile Banner
250×250 Square
200×200 Small Square
What Is an Ad?
The ad stands for Advertisement. In digital advertising, the ad can be a static image, video, text, animated image, audio or a combined form of all, etc
What Is Ad Auction?
In the programmatic advertising method, the entire ad space buying and selling process is done automatically. Advertisers participate in an ad auction to win the ad space. Those who bid more will win the auction and their advertisement will be displayed in the particular ad space.
Conclusion
Knowing programmatic advertising terms is very important to start your career in the Digital Advertising field. Here, I have shared important programmatic advertising terms. Also, explanation article links are shared for your help.
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