AdTech Glossary

Navigate the complex world of digital advertising with VDO.AI's comprehensive glossary. Decode industry jargon and stay ahead in just 25 words.

A

A/B TEST

A/B testing is a method where two ad versions are compared for performance, helping advertisers choose the more effective one to optimize campaigns and boost ROI.

ABOVE THE FOLD

Refers to the portion of a web page that is immediately visible without scrolling. It's a prime advertising space, potentially leading to higher visibility and engagement for ads placed in this area.

AD EXCHANGE

A digital marketplace where publishers and advertisers buy and sell ad inventory in real-time through automated auctions. Advertisers bid on impressions, and the highest bidder's ad is displayed on the publisher's website or app.

AD NETWORK

A digital advertising intermediary that connects advertisers with a network of publishers, facilitating the display of ads on various websites and apps. They offer access to a wide audience and provide tools for ad management.

AD FORMAT

Refers to the specific layout and presentation style of an online ad. It encompasses size, design, and interactive elements. Common ad formats include videos, native ads, and interstitials, each tailored for different user experiences and platforms.

AD LAYOUT

Refers to the arrangement and design of elements within an advertisement. It involves the placement of text, images, and interactive features to create a visually appealing and effective ad.

ADTECH

Adtech, short for advertising technology, is a broad term encompassing digital tools, platforms, and systems used in the advertising industry. It includes various technologies like programmatic advertising, data analytics, ad networks, and demand-side platforms.

APP ADVERTISING

The practice of promoting mobile apps to a targeted audience through various digital channels, including in-app ads, and mobile ad networks. The goal is to increase app downloads, engagement, and user acquisition by utilizing advertising strategies tailored for mobile platforms and user behavior.

ARBITRAGE

Arbitrage refers to the practice of buying and selling digital advertising inventory at different prices to generate profit. Advertisers and publishers exploit price discrepancies in real-time auctions, purchasing ad space at a lower cost and reselling it at a higher price.

AUDIENCE TARGETING

The practice of selecting and reaching specific groups of individuals or demographics with tailored advertising content. It involves using data and technology to identify and segment audiences based on factors like age, gender, interests, browsing behavior, location, and more.

B

BEHAVIORAL TARGETING

A strategy that delivers personalized advertisements to users based on their online actions and interests. Ads are aligned to users based on their preferences and habits, enhancing ad relevance and engagement.

BID PRICE OPTIMIZATION

The process of adjusting the maximum bid amount for an ad placement in real-time auctions with the aim of optimizing the balance between ad visibility and cost-efficiency.

BRAND/AGENCY DSP

A brand or agency Demand-Side Platform (DSP) is a software tool that enables advertisers and agencies to purchase and manage digital advertising inventory across multiple ad exchanges and publishers.

BRAND SAFETY & FRAUD PREVENTION

Strategies and technologies used to protect advertisers' brands and campaigns from appearing alongside harmful or inappropriate content. It involves measures to detect and mitigate fraudulent activities, such as ad fraud, click fraud, and impression fraud.

C

CALL TO ACTION (CTA)

A 'call to action' (CTA) is a concise, compelling statement or element in advertising content that urges the audience to take a specific action, such as clicking a link, signing up, or making a purchase.

CAMPAIGN

Digital advertising initiative that involves the planning, execution, and monitoring of online advertisements. It includes strategies for targeting specific audiences, selecting ad formats, setting budgets, and tracking performance metrics.

CLICK-THROUGH RATE (CTR)

Click-Through Rate (CTR) is a digital marketing metric that measures the effectiveness of an online advertising campaign by calculating the percentage of users who click on an ad's link or call-to-action.

CONNECTED TV (CTV)

Connected TV (CTV) refers to television sets or devices connected to the internet, allowing users to stream digital content and access online services, including advertising and video streaming platforms.

CONTEXTUAL TARGETING

Contextual targeting in advertising is a strategy that delivers ads to users based on the content of the webpage they are currently viewing, ensuring relevance and alignment with the surrounding context.

CONVERSION RATE (CR)

Conversion Rate measures the percentage of users who take a desired action, such as making a purchase or filling out a form, in response to a marketing campaign or website.

COOKIE

A cookie is a small text file stored on a user's device by a website, containing data to track user activity, preferences, and authentication for improved browsing experience and personalized content.

COST PER ACQUISITION (CPA)

Cost Per Acquisition is a performance-based advertising metric where advertisers pay for each predefined action, like a sale or lead, generated as a result of their campaign.

COST PER CLICK (CPC)

Cost Per Click in digital advertising is a pricing model where advertisers pay a fee each time a user clicks on their online ad, regardless of whether it leads to a conversion.

COST PER LEAD (CPL)

Cost Per Lead in adtech is a metric where advertisers pay a fee for each generated lead or potential customer resulting from their marketing campaign, often used in lead generation efforts.

COST PER MILLE (CPM)

Cost Per Mille in advertising is a pricing model where advertisers pay a fixed fee for every 1,000 impressions or views of their ad, regardless of clicks or interactions.

COST PER VIEW (CPV)

Cost Per View in advertising is a pricing model where advertisers pay a fee each time their video ad is viewed by a user, typically used in video marketing campaigns.

CUSTOMER TARGETING

Customer targeting involves identifying and selecting specific segments of the population that are most likely to be interested in a product or service, tailoring marketing efforts to reach them effectively.

D

DATA MANAGEMENT PLATFORM (DMP)

A Data Management Platform in adtech is a software solution that collects, stores, and analyzes data from multiple sources to inform digital advertising campaigns and audience targeting strategies.

DEMAND-SIDE PLATFORM (DSP)

A DSP is a technology platform that enables advertisers to purchase and manage digital advertising inventory programmatically, optimizing ad placements for target audiences.

DYNAMIC ADS

Dynamic ads automatically tailor their content to individual users based on data, providing personalized and relevant ad experiences for enhanced engagement and performance.

E

EFFECTIVE COST PER MILLE (ECPM)

eCPM is a metric used to measure the estimated earnings from 1,000 impressions of an ad, considering both CPM and CPC pricing models.

ENGAGEMENT RATE

Engagement rate quantifies user interaction with digital content, often measured by metrics like clicks, likes, shares, or comments, indicating audience involvement and campaign success.

F

FIRST-PARTY COOKIE

A first-party cookie is a small text file placed on a user's device by the website they are visiting, used primarily for tracking and enhancing user experience on that website.

FIRST-PARTY DATA

First-party data comprises information collected directly from a company's own audience or customers, offering valuable insights for personalized marketing and user experiences.

FLOC

Federated Learning of Cohorts (FLOC) is a privacy-centric method developed by Google to group users with similar interests for advertising targeting, without revealing individual user data.

G

GEOTARGETING

Geotargeting is a digital advertising technique that delivers content or ads to users based on their geographic location, allowing for localized and relevant messaging.

GUARANTEED DEALS

Guaranteed deals in programmatic advertising involve predetermined agreements between buyers and sellers for guaranteed ad placements, often offering premium inventory and fixed pricing.

H

HEADER BIDDING

Header bidding is an advanced programmatic advertising technique that allows publishers to offer ad inventory to multiple buyers simultaneously, maximizing ad revenue through fair competition.

I

IDENTITY DATA & RESOLUTION

Identity data refers to information used to recognize individuals or devices in digital marketing. Identity resolution is the process of accurately connecting data to create a unified user profile.

IMPRESSION (OR DISPLAY)

An impression in digital advertising refers to a single instance of an ad being displayed on a user's screen, often used as a metric for ad performance.

INSERTION ORDER (IO)

An insertion order (IO) is a formal agreement that specifies the terms and conditions for running an advertising campaign, including details about ad placements, creative assets, targeting, and pricing.

INTERACTIVE ADVERTISING BUREAU (IAB)

The Interactive Advertising Bureau is an industry association that sets standards and guidelines for digital advertising, promoting best practices and innovation in the field.

INVENTORY MANAGEMENT

Inventory management in digital advertising involves overseeing and optimizing the availability and allocation of ad space on publishers' platforms, ensuring efficient use and revenue generation.

K

KEY PERFORMANCE INDICATOR

KPI refers to specific metrics used to evaluate the effectiveness and success of an advertising campaign or marketing strategy. Common adtech KPIs include CTR (Click-Through Rate), CPA (Cost Per Acquisition), ROI (Return on Investment), and conversion rates, providing actionable insights for campaign optimization.

L

LOAD TIME

The time it takes for a web page or ad to fully load and become visible to the user, a critical factor for user experience and SEO.

LOCATION BASED ADVERTISING

Targeted advertising that uses a user's geographic location to deliver relevant messages, offers, or content, often used in mobile advertising.

M

MEDIA PLAN

A media plan is a strategic document outlining the advertising objectives, budget, and channels to be used in a marketing campaign to effectively reach and engage the target audience.

MEASURE

Measurement in marketing refers to the process of assessing and analyzing data to gauge the performance and effectiveness of advertising campaigns, helping optimize future strategies.

MOBILE ADS

Mobile ads are advertisements specifically designed and optimized for display on mobile devices, including smartphones and tablets, to reach audiences using mobile apps or websites.

MONETIZATION

Monetization encompasses methods used by content creators and publishers to generate revenue from their digital assets, such as ads, subscriptions, e-commerce, or sponsored content.

MULTI-TOUCH ATTRIBUTION

Multi-touch attribution is an analytics approach that assigns value to multiple touchpoints or interactions along a customer's journey, helping marketers understand the impact of each touchpoint on conversions.

N

NATIVE ADS

Native ads are advertisements that seamlessly blend with the content and design of the platform they appear on, offering a non-disruptive, user-friendly advertising experience.

NETWORK

A network is a digital ecosystem that connects advertisers, publishers, and platforms to facilitate the distribution and management of advertising content and campaigns across multiple channels.

O

ONLINE VIDEO (OLV)

OLV, or Online Linear Video, in adtech refers to digital video content that is streamed to viewers in a linear, TV-like fashion over the internet, often with scheduled ad breaks.

OVER-THE-TOP (OTT)

OTT refers to the delivery of video content and advertising directly to viewers over the internet, bypassing traditional cable or broadcast distribution channels.

P

PERSONALIZE

Personalize refers to tailoring content, recommendations, or ads to individual user preferences and behaviors, enhancing user engagement and relevance in marketing and digital experiences.

PREMIUM AD INVENTORY

Premium ad inventory consists of high-quality, sought-after advertising placements on reputable websites or platforms, often yielding better visibility and engagement for advertisers.

PRIVATE MARKETPLACE (PMP)

A Private Marketplace is an invite-only digital advertising marketplace where publishers offer premium ad inventory to a select group of advertisers, ensuring more controlled and premium ad placements.

PRODUCT RECOMMENDATIONS

Product recommendations are personalized suggestions, often based on user data and behavior, to encourage online shoppers to explore and purchase relevant products or services.

PROGRAMMATIC ADVERTISING

Programmatic advertising automates the buying and placement of digital ads through real-time bidding, data-driven algorithms, and audience targeting, making ad campaigns more efficient and targeted.

PROGRAMMATIC DIRECT

Programmatic Direct is a method of programmatic advertising where advertisers and publishers negotiate and agree on ad deals and terms directly, bypassing open auctions for more control.

PROGRAMMATIC MEDIATION

Programmatic mediation involves optimizing ad inventory by selecting the most lucrative ad network or exchange to fill it, maximizing revenue for publishers.

PUBLISHER

A publisher is an entity that produces and distributes digital content, including websites, apps, or other media platforms, often monetizing their content through advertising or subscriptions.

PUBLISHER MONETIZATION

Publisher monetization refers to the strategies and methods publishers employ to generate revenue from their digital content, including advertising, paid subscriptions, and affiliate marketing.

REACH

Reach refers to the total number of unique users or audience members exposed to a specific advertising campaign or message within a given time frame.

REAL-TIME AUDIENCE (RTA)

RTA involves the instant analysis and segmentation of online users based on their behavior, allowing for real-time ad targeting and personalization.

REAL-TIME BIDDING (RTB)

RTB is an automated auction process where advertisers bid in real-time for ad inventory, helping them reach their target audience with more precision and efficiency.

RETAIL ADS

Retail ads are digital advertising campaigns specifically designed to promote products, offers, or services within a retail context, often aimed at driving in-store or online sales.

RETARGETING

Retargeting is an advertising strategy that involves displaying ads to users who have previously interacted with a brand or visited its website, encouraging them to return and convert.

RETENTION

Retention measures the ability of a business to keep existing customers engaged and loyal over time, often through strategies like customer satisfaction, loyalty programs, and communication.

RETURN ON ADVERTISING SPEND (ROAS)

ROAS quantifies the revenue generated from an advertising campaign in comparison to the cost of that campaign, helping advertisers assess its effectiveness.

RETURN ON INVESTMENT (ROI)

ROI evaluates the profitability of an investment, including advertising, by comparing the gain or loss against the initial investment cost. It's a crucial metric for assessing campaign performance.

S

SUPPLY-PATH OPTIMIZATION (SPO)

SPO is the practice of optimizing the most efficient and cost-effective pathways for buying digital advertising inventory to enhance transparency, reduce fees, and improve performance.

SUPPLY-SIDE PLATFORM

An SSP is a tool that empowers publishers to manage and sell their online ad inventory programmatically, enhancing revenue and ad campaign efficiency.

SELF-SERVICE PLATFORM

A self-service platform is a digital interface that enables advertisers or publishers to independently manage and control their advertising campaigns, creative assets, and settings.

SITE OPTIMIZATION

Site optimization is the process of enhancing a website's performance and user experience to maximize ad revenue and conversion rates, often involving speed, design, and content improvements.

T

THIRD-PARTY COOKIE (3P COOKIE)

A third-party cookie is a tracking file stored by a domain other than the one visited by the user, often used for ad targeting, retargeting, and analytics.

THIRD-PARTY DATA (3P DATA)

Third-party data refers to information collected by external sources unrelated to the advertiser or publisher. It aids in targeting, personalizing, and optimizing ad campaigns for improved performance.

THIRD-PARTY SSP

A Third-Party SSP is an external software service that publishers employ to effectively manage and monetize their digital advertising inventory in the programmatic advertising ecosystem.

U

UPLIFT

Uplift, in advertising, indicates the positive change in behavior or response observed in a group exposed to an advertising campaign compared to a control group that wasn't exposed.

USER ID

A user ID is a unique identifier assigned to an individual or device, allowing businesses to track and recognize users across digital platforms and personalize their experiences.

V

VIDEO COMPLETION RATE

Video completion rate measures the percentage of viewers who watch an entire video ad, indicating the level of engagement and effectiveness of the video content.

W

WALLED GARDENS

Walled gardens refer to closed digital ecosystems, typically controlled by tech giants like Facebook and Google, where data and user activities are confined within their platforms, limiting external access and insights.

Y

YIELD

Yield refers to the revenue or return generated from digital advertising activities. It's typically expressed as a percentage and is a measure of the effectiveness and profitability of ad campaigns, ad placements, or ad inventory.