iSOCRATES MADTech Glossary of Terms
MADTech is the convergence of Marketing Technology, Advertising Technology and Data Technology(which includes Analytics). MADTech is a large and growing global industry that combines automation, artificial intelligence, real-time auction-based electronic trading, other new and emerging technologies and processes, and specialized skills and capabilities to achieve incremental effectiveness and efficiency in an increasingly complex and fast-moving world. The MADTech industry is composed of publishers, marketers, agencies and consultancies, and their data and tech enablers.
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1st party Data
Customer, prospect or digital audience Information compiled and owned by a publisher or marketer which can be compiled explicitly (i.e., signing up for an email list, filling out a form or survey, etc.) or implicitly (i.e., information about past web surfing habits, site visits, etc.). A “truth” set. Likely your best data source.
2nd Party Data
On a permissioned basis, customers and prospects provide their identity and other data to another company which in turn shares or uses it in partnership.
A cross-industry initiative started by three advertising trade associations (IAB, ANA, and 4A’s) to create standards for how digital media is measured, planned and transacted as well as provide guidance to make digital measurement comparable to traditional measurement.
3rd Party Data
Audience, contextual, demographic, behavioral or other data directly collected and shared by other than the publisher, marketer or a 2nd party. 1st party data can be enriched by 2nd party and/or 3rd party data, which in turn can be even more enriched by data aggregators or data management platforms.
This is the part of the web page or email that is viewable when a page renders in the browser, without scrolling down. Any placements below this are considered ‘Below-the-Fold’. Above-the-Fold placements are generally considered to have a better performance but publishers can now actually track the performance of all ads.
When a user signs up, makes a purchase or performs some other desired action in response to an ad displayed on the Internet. Also called a conversion or action.
The execution of the marketing mix as part of the marketing process. The activation phase typically comes after the strategy and planning phases during which managers plan their marketing activities and is followed by feedback and optimization phases in which results are evaluated with media and marketing analytics.
An ad blocker is a software product that prevents advertisements from appearing with the content the user is intentionally viewing. People block ads for a variety of reasons. For example, many of them find interrupt marketing ads annoying and even stressful. Interrupt marketing is intrusive by design, like an interstitial ad that comes between users and the content they are attempting to view or an autoplay or rollover ad that starts up without any intentional act on the part of the user.
When an open slot of ad space is available on the Internet, a user’s browser sends requests to ad exchanges or ad servers to send an ad. This request is known as an ad call. Ad calls include information from browser cookies and ad tag information such as publisher ID, size, location, referring URL, and other specifications and data needed for the ad to serve.
How well advertising accomplishes what the marketer intends. Companies use many different statistics or metrics to measure their advertising effectiveness. A company’s advertising effectiveness usually increases over time with repeated exposures of sequenced, relevant messages, but ad effectiveness in any one media channel typically declines over time. Certain advertising objectives can be realized using measurable techniques including: reach, frequency, brand awareness, consideration, intent, purchases, and loyalty.
An auction-based intermediary in the process of digital media trading that connects buyers and sellers of ad inventory. The ad exchange provides a technology platform that functions in real-time – as the user loads the web page, the publishers’ unsold inventory becomes available for purchase to advertisers on a single impression basis. When a bidder wins the impression, the advertiser’s creative is displayed on the web page to a single user/viewer.
Ad fraud is defined as the deliberate practice of attempting to serve ads that have no potential to be viewed by a human user. There are numerous types and sources of ad fraud. Ad Fraud Detection has become a critical tool for the buy-side of the market. Relatedly, there are numerous viewability methods and resources.
Ads are inserted on a page by software on the user’s computer, such as a toolbar ad-on. The ad units were not placed by the publisher, and the publisher is not compensated for them. Ad injection software either replaces the authorized units on the page with unauthorized ones, or adds new placements to the page, possibly in poor positions (i.e. below the fold).
An intermediary in the process of digital media trading that sells publisher inventory to advertisers or agencies. Ad Networks repackage publishers’ inventory, which may or may not be remnant rather than premium, selling it to advertisers at a price determined by the network and/or negotiated between the buyer and seller at a price higher than what the network paid the publisher.
The various technical and workflow tasks needed for running digital advertising campaigns. Ad operations ensure more efficient and effective delivery for ad insertion orders and ad inventory management. Know more here
Ad retargeting is simply increasing the frequency of ads being sent to someone who has been selected as part of your audience. It could be an increased delivery of the same ad, a similar message or a sequential message. It’s not exactly the same as retargeting because the consumer isn’t being qualified in the same way.
The technology and service that places advertisements on websites and mobile properties. Ad serving technology companies provide software to publishers and advertisers to serve ads, count them, help choose the ads that will make the website or advertiser the most money, and monitor the progress of different advertising campaigns.
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The network or entity from which advertising content is consumed by a given inventory unit. Multiple sources may compete for display in a single unit (for example, AdSense and AdX as backfill challengers).
These are markers that categorize a file, image or video so that it can be found by being linked to other content. Tags are usually attached during an item’s creation and items usually have more than one tag.
A single unit of ad space.
Services that offer to validate that the advertiser’s ad was delivered to the agreed upon specification in the advertising insertion order. There can be additional criteria such as above the fold placement, geographic targeting.
The AdChoices program was created by the ‘Digital Advertising Alliance’ (DAA) and is supported by 4As, AAF, ANA, BBB, DMA, IAB and NAI, which are all industry trade association. The program allows users to click on an icon on the upper or lower right corner and see information about the companies that are providing the internet-based ads as well as click to opt-out and not be behaviorally targeted.
Ads.txt stands for Authorised Digital Sellers and allows publishers to add a text file to their servers, which are then integrated into MADTech platforms. This helps publishers clearly communicate who is authorised to sell their inventory, adding additional layers of transparency for MADTech buyers.
A Google service that can help you display Google ads on your website’s content pages and earn money.
A company or entity that applies its expertise and technology to help marketers buy advertising inventory from media sellers and marketplaces such as publishers, ad exchanges, ad networks, sales houses, etc.
Agency Trading Desk (ATD)
A centralized, service-based organization within an ad agency that manages the Demand-Side Platform (DSP), other audience buying technologies, as well as manages MADTech and RTB audience buying. All major agency holding companies have trading desks.
Data combined from many individual users that does not identify any single user.
Systematic trading rules or a computational procedure to activate delivery and to derive results from data.
Also known as Web Metrics, analytics refers to the collection of data about a website and its users. Analytics programs typically give performance data on clicks, time, pages viewed, website paths, and a variety of other Google Analytics information. The proper use of Web analytics allows website owners to improve their visitor experience, which often leads to higher ROI for profit-based sites.
Data points that do not identify a specific person, such as age or gender.
An Application Programming Interface is a programming method used to interact with software, applications, or tools. APIs provide a simplified querying language that allows consumers or developers to access underlying databases and hardware without disrupting stability or reliability, and without knowledge of underlying programming languages. They may be based on a variety of programming languages and models, but the types of APIs used by consumers to interact with Web-based software or apps are often known as SOAP or REST services, which consist of a set of specifications for remote calls that enable consumers to interact with data and systems without the risk of disrupting their function. For example, AppNexus uses a RESTful API to facilitate interaction with its Web-based software.
App remarketing is retargeting within app-only environments, after a user has downloaded an application. Typically, the message is to encourage users to revisit the app and have a new experience.
In the more general sense, the basic business strategy of exploiting market inefficiencies by buying a commodity in one market and reselling it in another, at a profit and with little risk. In the context of RTB for example, this refers to the purchasing cheap display impressions, loading a video player into it, and re-selling the inventory at a much higher priced “in-stream video” impressions on a video exchange.
Ratio of width to height for a video or image.
The art work or file associated with a creative object.
This is known information about a user that can be used to match them to an ad content they would be interested in based on their demographics, segmentation, and retargeting information.
Composed of rules, or sets of rules, that determine how credit for sales and conversions are assigned to touchpoints in conversion paths. For example, the Last Interaction Model assigns 100% credit to the final touchpoints (i.e., clicks) that immediately precede sales or conversions. Other models include: Heuristic models, Shapley models, Data-driven probabilistic models, and Agent models. Bidding and budget allocation can be done with Multi-Touch Attribution models (MTA).
A dynamic form of pricing where the price is determined by the market. Buyers are able to bid from a floor price with the bid going to the highest bidder. MADTech media uses a second price auction model. This means that the highest bidder has to pay $0.01 more than the second highest bid.
A classification of a user group that has some common characteristics or attributes such as demographic data, habits, interests, behaviors or more. These segments are used to target individuals when delivering online advertising campaigns.
This utilizes 1st and 3rd party data to create, target and buy audience segments, increasing the number of possible targets.
Consumer data that is provided by a first-party such as a publisher or a DMP or other third-party data sources. This term is frequently used in reference to an advertiser’s own retargeting list or to data coming directly from a publisher, which is available at the moment an ad impression is made available. First-party data is generated when a cookie is placed on a website by the owner (publisher) so that the owner can recognize return visitors to the website. Third-party data is generated when a cookie is placed on a website by a third-party, such as an ad server or data provider. Information from these cookies is collected and can be used to place users in one or more segments, based on their online activity. These cookies are used to target advertisements and segment audiences.
The application of a data-driven, cost-effective approach to creating more and better site traffic for the explicit purpose of greater publisher monetization. These programs may leverage publisher data, analytics, media planning, buying and optimization capabilities across Display, Video and other media channels.
A process which extends digital audiences beyond a publisher’s owned and operated ad inventory allowing advertisers to reach the same people, devices and/or households elsewhere. Audience extension typically leads to higher conversion rates and a more efficient ad spend by increasing reach and frequency for the advertiser while increasing revenue for the publisher.
Autoplay video is audiovisual content, usually containing advertisements or promoted content, that starts automatically when a user goes to the host web page. The purpose of autoplay is to get the user’s attention, which it is bound to do so long as the user has sound turned on.
When algorithms or automated decision processes are used to improve campaign performance indicators (e.g. cost-per-click or cost-per-acquisition) based on available data.
A type of inventory that is reserved, has fixed pricing and incorporates a one seller-to-one buyer type of participation. Automated Guaranteed transactions are designed to automate direct sales through a publisher ad server’s API. Other terms used in the market to describe Automated Guaranteed Digital Media Inventory are: MADTech Guaranteed, MADTech Premium, MADTech Direct and MADTech Reserved. Prioritization in the ad server, the Deal ID, Data usage, Transparency to buyer and pricing floors are other things to consider as an impact to Automated Guaranteed Digital Media Inventory. The IAB OpenDirect specification, which standardized APIs and accelerated their development, allowed publishers to package and market their inventories at guaranteed volumes. Within a buying interface, marketers have direct access to a publisher’s packaged inventories. They have the ability to search and filter inventory offers based on: site, format, device, targeting, pricing, and another desired criterion. They can browse the goods, just as they would on an online shopping website. In addition, they can check available inventory, send booking requests, traffic campaigns and access reports all from a single interface. Moreover, publishers can accept or refuse booking requests, validate creative files and even propose a discounted price. In short, with the help of an ad server, a publisher can keep control of their inventory while leveraging additional sales.
A banner is an advertisement in the form of a graphic image that typically runs across a web page or is positioned in a margin or other space reserved for ads. In addition to adhering to size, many websites limit the size of the file to a certain number of bytes so that the file will display quickly.
The tendency of Web visitors to ignore display ads when consuming content online, leading to low click rates, visibility for advertisers and revenue for publishers.
The auction component of the buying algorithm that places bids on ad impressions.
The amount of the money the advertiser wants to pay for the ad display opportunity being actioned.
A list of domains or apps that a buyer does not want to buy ad space on.
Blocks of data strung together as a distributed ledger running over a peer-to-peer network that authenticates and protects the data.
A distributed collection of computers running bots, typically home computers infected with malware. The distributed nature of the activity makes it harder to single out.
Computer programs designed to simulate human web browsing activity and generate fraudulent ad impressions.
The percentage of people who visit your website but leave without visiting any other page.
A set of practices and technical tools that ensure the advertiser’s brand is not damaged as a result of the improper or inappropriate placement of ads.
A type of display ad campaign that has the primary goal of spreading awareness of a company’s products or services.
A shot video ad that plays before or after an ad slot during video content.
Call to Action
A phrase included within an ad, or a graphic element such as a button, which invites the audience to take a certain action. Examples include phrases such as Click to Read More, Download Your Free eBook Now, or Click Here.
A specific marketing initiative run by an advertiser, identified by a time period and a specific objective or message.
Visuals like charts, graphs and tables that provide a snapshot of media and marketing campaign performance at a point in time so executives can spot problems, or identify marketplace opportunities, and optimize appropriately.
Campaign optimization saves time and money while helping marketers achieve and improve upon media and marketing objectives by efficiently collecting the necessary data to analyze marketing campaigns and make informed data-driven business decisions. Campaign analysis helps marketers to reduce waste but can also provide the marketer with insight into maximizing the lifetime value of a customer over time. The campaign analysis and optimization process can be divided into two major categories: a) Harvesting Low Hanging Fruit: areas in need of improvement that are relatively easy to identify and provide quick and effective results; and, b) Long Term Optimization: the process of continual optimization over time and includes improving the customer’s overall lifetime value.
A piece of legislation passed in 2003 that governs the sending of marketing emails.
An advertising channel is any application on a digital device (e.g. web browser, gaming app, email, social, video player, and more) on which companies market products and services. The amount of channels available to marketers has grown enormously with the advancement of digital devices to embellish traditional media advertising.
A third-party organization or individual that markets and sells products, services or technologies for a manufacturer or service provider via a partnering relationship.
A click is “when a visitor interacts with an advertisement.” This does not apparently mean simply interacting with a rich media ad, but actually clicking on it so that the visitor is headed toward the advertiser’s destination. (It also does not mean that the visitor actually waits to fully arrive at the destination, but just that the visitor started going there.)
These are clicks that are generated falsely, either by humans or artificially with the intent to creating a click on a search engine listing or text ad, forcing the advertiser to pay even though the click is not real. Search engines have measures to try and prevent this. Indicators of click fraud are a spike in clicks and can be monitored by collecting log file and visitor data.
Click-Through Rate (CTR)
This is the number of click throughs received by an ad divided by the number of ad impressions. This is a key performance indicator for ads.
A recorded path of the pages a user requested in going through one or more websites. Click stream information can help website owners understand how visitors are using their site and which pages are getting the most use. It can help advertisers understand how users get to the client’s pages, what pages they look at, and how they go about ordering a product.
In general, a computing cloud is a networked group of servers accessible through remote means. In ad tech, this usually refers to cloud computing infrastructure on which an ad platform of some kind runs. Data or processes existing within such a network is sometimes said to be “in the cloud”.
Consumer Data Platform (CDP)
A marketer- or publisher-managed system that creates a persistent, unified customer database that is accessible to other systems. This structured data is then made available to other marketing systems.
Content Delivery Network (CDN)
A CDN delivers static content, such as creative image or flash files. Usually, CDN providers have servers across the globe configured to deliver content as quickly as possible, which is why it’s typical for ad servers to rely on them.
Content Management System (CMS)
This technology allows website owners to make text and picture changes to their websites without specialized programming knowledge of software like Adobe Dreamweaver or Microsoft FrontPage. Content Management Systems can be edited by anyone with basic word knowledge via an internet connection. No need for length or costly web development contracts or need to wait on someone outside your company to make changes. CMS examples include WordPress, Drupal, and Joomla.
Content marketing is the publication of material designed to promote a brand, usually through a more oblique and subtle approach than that of traditional push advertising. The essence of good content marketing is that it offers something the viewer wants, such as information or entertainment.
Contextual Targeting (see Semantic Targeting)
A form of automated, targeted advertising based upon page/view-level content displayed to audiences on sites and in mobile browsers.
An event showing a user has become a customer of the advertiser. The conversion event can be defined by various of actions, such as a successful page landing, a registration on the advertiser’s website, an email subscription, making a deposit, a product purchase etc.
A 1×1 image or js pixel placed on a web page (such as a thank-you page) which is triggered whenever a conversion occurs. Usually transparent.
A small text file on the user’s desktop computer that identifies the user’s browser so that they are recognized when they re-visit a site or go elsewhere online.
Cookie-less targeting refers to a number of non-cookie based methods that can be used for targeting in cases where cookies may not work.
The process of matching the user ids from one system to another. This allows SSPs and DSPs to identify the same browser for the purpose of re-targeting browsers through the ad exchanges.
Cost per Acquisition (CPA)
The advertiser pays according to each ‘action’ attributed to the campaign or evaluates it according to the resulting CPA.
Cost Per Click (CPC)
The advertisers pay according to the number of clicks attributed to a campaign.
Cost per Thousand (CPM)
In digital advertising, CPM is an estimate of the price or cost per 1,000 views of an ad. It is a useful measure for calculating the relative cost of an advertising campaign or for comparing different marketing channels for the campaign.
Cost per Video (CPV)
The CPV price is the amount that gets paid when a video ad is played. In general, the video doesn’t have to be watched the whole way through to cause a payout – just started. In some video advertising models this price is also paid when someone clicks on a video ad.
A model that allows advertisers to pay only when ad is watched for a pre-determined amount of time, such as 30 seconds.
A model that allows advertisers to pay only when playback on the ad meets a certain viewability requirement, e.g. 50% of pixels in view for at least 2 continuous seconds for the MRC standard. CPVV is always relative to a viewability definition or standard.
Similar to an ad tag, this is a snippet of code that gives the location of the creative, which is usually a content delivery network (CDN) or an ad server.
Utilizing different channels at one time. One can assume that campaigns targeting email, mobile, and online users are performing cross-channel tactics.
Involving multiple screens—those of laptops, tablets, phones, desktop computers or TVs. Marketers are trying to understand when their messages reach consumers on different devices throughout the day, identifying users accurately as they switch screens. Cross-device data lets marketers avoid repeating messages to the same person on different screens more than they want to, among other things.
Customer Data Platform (CDP)
A publisher- or marketer-managed system that creates a persistent, unified customer database that may include personally identifiable and non-personally identifiable information accessible to other systems.
Customer Relationship Management (CRM)
Software solutions that help enterprise businesses manage customer relationships in an organized way. An example of a CRM would be a database containing detailed customer information that management and salespeople can reference in order to match customer needs with products, inform customers of service requirements, etc.
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Data Management Platform (DMP)
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Demand Path Optimization
Demand-Side Platform (DSP)
Digital Marketing Funnel
Email Service Provider (ESP)
Global Leader in MADTech Resource Planning and Execution
High-Frequency Trading (HFT)
Impression/ Ad Impression
Independent Media Trader (IMT)
Insertion Order (IO)
Internet Advertising Bureau (IAB)
Key Performance Indicator (KPI)
Long Tail Publishers
Long Tail Publishers
MADTech Direct is a way to automate direct ad buys for set campaigns. MADTech Direct is the transactional methodology of automated direct sale of guaranteed advertising between advertiser and publisher.
A one-to-one sale with fixed pricing and reserved inventory that is processed automatically. An automated transaction that takes place in the context of OpenRTB. Publishers that make guaranteed deals and sell utilizing MADTech auction technology such as deal IDs are, in effect, selling through MADTech guaranteed. When this occurs, publishers and buyers negotiate a fixed price for reserved inventory, with the publisher linking the deal to said inventory in the RTB platform. The transaction is processed with a solution that was initially designed for real time bidding, but that has been pushed to its limits to support “direct sales”. To complete such a sale, the publisher needs a holistic view of both direct commitments and MADTech sales. Therefore, this type of transaction is limited to platforms like Smart RTB+.
MADTech media buying best practices and technology originally developed for computerized buying of online display advertising can be applied beyond display advertising or even beyond paid media to embrace all digital marketing activities. MADTech marketing is about data and algorithmically-driven targeting and campaign management being applied integrated across all paid, earned, and owned digital marketing activity. Know more here
MADTech Media Buying
Automated buying and selling of digital media using disparate data and typically algorithmically-driven trading systems with direct access to publisher ad servers, ad exchanges, supply side platforms, demand side platforms, trading desks and other auction-based electronic marketplaces, sellers and buyers. MADTech trading can be real-time or forward bought. Know more here
MADTech Shopper Hub
A data, analytics and activation platform that combines disparate sources of shopper Personally Identifiable Information(PII) like names, emails, postals, purchases and non-Personally Identifiable Information(non-PII) like cookies and mobile device IDs with media like ad inventory and email. The MADTech Shopper Hub applies its proprietary unified Shopper ID such that the publisher can offer fully integrated the client targeting, activation, measurement, optimization, and reporting.
Outsourced execution and support on behalf of publishers, marketers and/or agencies. These services may include: administration; technologies and related support services; monetization; data, analysis and reporting; and business development and marketing.
A class of media for sale in a marketplace expected to transact at a set future date for a set future price and volume for a defined audience via a MADTech auction. A futures market for digital media would invite industry players and speculators to bet, through online exchanges, on the future price of media inventory. Ad sellers could lock in sales further out, while buyers could lock in prices on inventory that they expect to become more expensive.
A document used primarily by ad sales professionals to concisely summarize the audience and advertising options for a website.
Media Market Maker (a/k/a Independent Media Trader)
A new form of independent media agency/media trading desk that may or may not use its client’s money to buy media and audience data and charges a transparent cost-plus fee. A media market maker may use its own capital to buy media at its own risk seeking to resell this media to a buyer for a profit. With sufficient volume of transactions, a media market maker can be successful on thinner profit margins than most other market participants. The effect of this risk-bearing role is to significantly narrow the spread between what the advertiser pays for a given result and what publishers receive for delivering the ad opportunity. Moreover, the market making role of a media market maker ensures the likelihood of higher fill rates and eCPMs for publishers.
Able to understand how the media works and able to use and orchestrate the media to one’s advantage.
Media Trading Desk
A service-based organization that provides a managed service layer overlaying or interfacing to one or a number of data management platforms (DMP), demand-side platforms (DSP), supply-side platforms (SSP) or trading platforms. Through the trading desk, a publisher, marketer or their proxy (agency or consultant) can programmatically buy/sell/optimize exchange-based biddable ad inventory. Know more here
A standard display ad that is 300 pixels wide by 250 pixels high.
A video ad unit that runs during video content within a video player environment.
Media that is consumed other than fixed position, traditional channels. These include tablets, cellular devices, and laptops.
Mobile Device ID
A unique identifier for a mobile device. The device ID cannot be linked to personally identifiable information (PII). Different operating systems use different identifiers: IDFA (iOS), AAID (Android), and Windows Advertising ID (Windows).
A process used to define and analyze data requirements needed to support marketing processes.
The process of converting audience traffic at a particular website or mobile app into revenue by implementing Pay Per Click (PPC) and/or Cost per Mille/Objective (CPM/CPO) pricing.
Viewable impression standard set by the Media Ratings Council. The current definition is that 50% of the ad unit be in view for 1 consecutive second for display and 2 consecutive seconds for video.
The buying of inventory across any channel (web, mobile, social, email, etc.) and any format (banners, rich media, video, etc.).
These are ad placements that are integrated into content so that users have a more streamlined content experience. Social media platforms tend to have unique functionalities that allow for native ads.
Non-O&O Audience Development
The term “Audience Development” describes activity which is undertaken specifically to meet the needs of existing and potential audiences. It can include aspects of marketing, commissioning, programming, education, customer care and distribution. Most often, the term refers to using paid and earned media to drive site traffic to a publisher’s digital property from non-endemic (other publishers’) properties.
Non-O&O Audience Extension
Audience extension allows advertisers to target and publishers to deliver the same or similar premium site audiences found on a publisher site(s), but when the inventory delivering those audiences not owned and operated by the publisher. This “synthetic” ad buy may or may not then be made at a lower CPM than running ads on the original premium site. Audience extension requires cookies, mobile IDs or other audience identifiers as triggers for behavioral targeting techniques.
Non-personally identifiable information (non-PII) is data that cannot be used on its own to identify, trace, or identify a person, so basically the opposite of PII.
Inventory sold directly by a publisher to an advertiser. Remnant inventory is usually sold by a third-party.
Offline data refers to data used for data-driven marketing on digital marketing channels and which originates from offline sources. Offline data can be the owner’s data – from CRM data files – or data bought from offline data vendors. Offline data offered by vendors can be retail transactions from credit card networks, aggregated offline catalog transactions, syndicated loyalty-card data and more. Regardless of where offline data comes from, the onboarding process removes personally identifiable information, leaving the population that is targetable as a group, but anonymous.
Open Auction Digital Media Inventory
Ad inventory that is unreserved, has auction based pricing and incorporates a one seller-to-all buyers type of participation. Other terms used in the market to describe Open Auction Digital Media Inventory are: Real-time Bidding (RTB), Open Exchange and Open Marketplace. Prioritization in the ad server, the Deal ID, Data usage, Transparency to buyer and pricing floors are factors to consider impacting to Invitation-Only Auction Digital Media Inventory.
An open exchange is defined as an open digital advertising marketplace for aggregated inventory from multiple partners where buyers can bid either manually or programmatically to purchase ad impressions. Ad Inventory on an open exchange allows all buyers the opportunity to purchase the same inventory.
The process of using historical data to adjust a MADTech approach to buying a piece of inventory. Frequently, this information will be used to either alter the bid price for a piece of inventory or determine if a buyer is willing to bid on a piece of inventory at all.
The redirecting of an impression back to an ad server when no acceptable bid is received from a mediated bid, in order to allow the next highest bidder a chance to win the impression. See also default tag.
Marketing techniques and campaigns by which the advertiser pays only for measurable results, including: Cost per action or CPA (any action agreed by publisher and advertiser), Cost Per Sale or CPS (flat fee or sales commission), Cost per lead (often based on filled webforms), and Cost per Click (CPC).
Personally Identifiable Information (PII)
This is data that allows a user to be identified by their true identity. This includes name, birth date, gender, social security number etc. Sites collect this via the registration process.
This term usually refers specifically to a piggybacked pixel. When pixel A has pixel B piggybacked on to it, then the firing of pixel A causes the firing of pixel B. This second firing can either be via a redirect or a server-side firing. Piggyback pixels may be used for tracking conversions in secondary systems.
An extremely abused type of online marketing advertisement, pop-ups open new windows on your screen that partially or wholly cover your current Web Browser window. Some search engines ban ads that create a certain number (or even any) pop-up ads. Direct Online Marketing™ does not include pop-ups or pop-unders as part of its internet marketing services.
An advertisement that opens in a new Web Browser window once you visit a particular page or take some other action. Considered less annoying than Pop-Up ads because the new window appears behind the existing one.
A video ad unit that runs after video content within a video player environment.
A pre-roll ad is a promotional video message that plays before the content the user has selected. The video advertisements are often repurposed television ads, sometimes shortened to 10 or 15 seconds because the 30-second standard for ads on television is not suitable for videos, which are themselves frequently only a few minutes long.
Better quality ad inventory found on well-known and well-respected publisher sites and apps. This type of media is more likely to achieve marketer ROI and is considered of highest value to an advertiser or publisher.
A price, usually set by the publisher, specifying the minimum CPM at which their inventory can be sold. It is common to set different floor prices for different sections of inventory and different ad formats.
Private Ad Exchange
A publisher-controlled ad exchange through which a publisher can directly auction and sell its ad inventory retaining more control over bid selection, setting dynamic reserves, and limiting potential buyers including by invitation-only auctions. A private ad exchange is an auction marketplace that a publisher can exclusively use to sell some or its entire ad inventory combined with its own proprietary data sets to obtain better bids and therefore improve revenues and yield using MADTech media channels.
A “Private Marketplace” (PMP), functions similarly to an open auction in pricing and is determined in real time based on what advertisers are willing to pay. The difference is Private Marketplace deals (PMP Deal IDs) are more exclusive, because only a select group of invited buyers are permitted to bid in the auction.
Using data points to guess who the consumer is on the other side of the screen. Knowing where a person is, what time it is and the device in use help, but not with nearly 100% confidence. This type of data is considered less accurate than deterministic (see “Deterministic”), though many say a blend of the two yields the most accurate results.
Organizations that deliver content or a service to an audience/users. Publishers may depend on selling advertising to generate revenue to fund the development and delivery of content or services. Publishers have traditionally directly sold their best quality advertising spots or space, whereas those that can’t or can’t cost-effectively be sold directly are often sold through third party resellers such as ad networks, supply-side platform or ad exchanges (electronic marketplaces) on their behalf. As marketers move more and more toward automated or MADTech media buying, so are publishers as they are adapting and learning how to effectively list their ad inventory in MADTech channels.
In the application of statistics to advertising and media analysis, reach refers to the total number of different (unique or unduplicated) people, households or devices exposed, at least once, in an ad campaign or to a specific media outlet during a given period.
Real Time Bidding (RTB)
A technology that uses highly specific data, algorithms and automation to enable marketers or their agencies to bid on ad inventory in millisecond auctions. During the time in which a user’s web page loads—in anywhere from 200 to 1000 milliseconds—the marketer places a bid on a particular ad impression, which is then served to the user once the page is loaded. Using data related to the user’s cookie in addition to other sources, the marketer is able to track the user and match them with available ad impressions. This allows for the delivery of the marketer’s message directly to the consumer in a live setting.
A way to limit the showing of an ad over time. For example, an advertiser might want to avoid showing an ad to a specific user ID more than once per hour.
Remnant Ad Inventory (also known as Backfill)
Advertising inventory that a publisher has failed to sell using its direct sales force or has decided not to use its direct sales force to sell this particular ad inventory or class of ad inventory. The publishers’ remnant ad inventory is then redirected to third parties to sell on their behalf. In many cases the publisher requires the identity of the publisher or title for the ad inventory not to be disclosed so the marketer has to buy the ad inventory blind. This is done by publishers to avoid gaming by marketers that could adversely impact the pricing of direct sold ad inventory. However, some publishers are experimenting with direct selling remnant ad inventory themselves through their own branded often by invitation only private ad exchanges. In a private ad exchange the publisher has more control over what ad inventory gets sold to whom and to decide which bids to accept. In addition, publishers are finding private ad exchanges are valuable sources of market intelligence allowing them to track and evaluate media buyers bidding behavior and ad inventory needs.
Request for Proposal (RFP)
A document sent by an advertiser or agency inviting a publisher to submit a proposal for an upcoming advertising campaign.
An action taken by a user based on the exposure to an ad.
Also known as remarketing, retargeting is digital advertising that features specific products or services and targets an individual who has viewed them online. Customers and leads already in an advertiser’s database may also be subjects for retargeting. Retargeting is the technology behind ads that follow people from one site to another.
Advertising that contains perceptual or interactive elements more elaborate than the usual banner ad. Some studies have shown that rich media ads tend to be more effective than ordinary animated banner ads.
Return On Advertising Spending and represents the dollars earned per dollars spent on the corresponding advertising.
Performance measure used to evaluate the efficiency of an investment and to compare the efficiency different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. Return on investment is a common metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment may not be undertaken.
A rollover ad (sometimes called a mouse-over ad) is an online advertisement that appears to be a static image until the cursor touches the image and activates it. Movement of the cursor over the image is known as a rollover. In the case of a rollover ad, activation usually causes an expansion of the ad.
% increase in sales (in $ or volume) obtained due to retailer merchandising. Calculated as (Incremental/Base) x 100
When used in context of social, refers to the audience reach available to marketers via social media platforms.
Search Engine Marketing (SEM)
A method of promotion and advertising to help companies’ content rank higher among search engine traffic. Like search engine optimization, search engine marketing helps companies improve the way content is ranked by search engines. Know more here
Search Engine Optimization (SEO)
An area of website development that seeks to improve the way content is ranked by search engines in organic search results. Various approaches are taken to achieve that goal, including making sure the website architecture makes it easy for visitors to find content and that pages are mobile-friendly and load quickly. Know more here
A specific type of Retargeting that allows an advertiser to show ads to searchers of given keywords who have never visited the advertiser’s site.
Second Price Auction
Second price auctions means the winner of an ad impression pays just one cent more than the next highest bidder.
A group composed of members of a target audience identified based on the webpages they visit, the actions they take such as making a purchase or completing a sign-up form, or data such as gender or geographical region.
A pixel that marks a user as belonging to a certain segment. For example, an advertiser might place a segment pixel on the homepage and mark all visitors to the homepage as “homepage visitors.”
Semantic Targeting (see Contextual Targeting)
In theory, semantic targeting means figuring out what the content on a webpage is really about and being able to place ads based on that content. For example, if a website says, “sunny weather,” is it about great beach vacations, or is it about skin cancer, and do you want to advertise flights to Florida on it or not? However, the term is often used by different people to mean slightly different things, and is often used to be synonymous with contextual targeting.
The most common form of retargeting: displaying your ads to a visitor based on a visit to your site, or individual page of your site. These cookie-based can appear on any publisher throughout the ad network being used. Various targeting options exist, including only showing ads when a certain page has been visited (such as a landing page) and an action has not been completed (e.g. a conversion).
Internet or mobile-based applications and tools to share communications and information. Social media includes popular networking websites, like Facebook, Snapchat and Twitter, as well as commenting and bookmarking sites like Disqus and Reddit. Social includes blogging, forums and any aspect of an interactive presence which allows individuals to engage in conversations with one another, often as a discussion over a particular blog post, news article, or event.
Misrepresenting an impression as something that it is not. For example, claiming that an impression is “cnn.com” when it actually serves on a completely different website. This is possible when platforms allow inventory to be self-declared, with no validation of what it actually is.
The prevailing market price for a given ad impression. It can also mean buying market-by-market or just-in-time rather than a national network buy or on a forward basis.
Standard Ad Units
A set of ad specifications for standard image or animated in-page ad units that establish a framework for advertising inventory and webpage design.
A distribution method for serving video files such that the video is played over a persistent connection between the browser and the ad server. Versions of the file at different levels of compression (quality) can be served based on detection of the user’s Internet bandwidth. HTML5 files cannot be streamed and rely on adaptive bitrate streaming technologies such as HLS and MPEG-DASH.
Supply Path Optimization (SPO)
An algorithm used by DSP’s to streamline how they interact with SSP’s. It gives media buyers the ability to bid on and win inventory at the most reasonable price, while it lets publishers maximize their revenue over the long run.
Supply-Side Platform (SSP)
Publisher-facing technology platform that enables publisher to better manage and to maximize the revenue from its ad impression inventory.
Many advertisers and their media buyers use a number of tags for tracking impressions, clicks, conversions, and other data. Some use tag containers to manage these disparate pixel tags and make it easier to change them via a single source. When a page loads, the tag container code displays the code for all tags stored within the container.
Tearsheet or Screenshot
One or more screenshots of webpages or apps showing specific ads, for the purpose of proving to the advertiser that they ran in the way that the advertiser wanted.
A 1×1 pixel-sized transparent image that provides information about an ad’s placement. In many cases, a tracking pixel is used to notify an ad tracking system that either an ad has been served (or not served, in some cases) or that a specific webpage was accessed. Also knows as: beacon, web beacon, action tag, redirect.
Unique User ID
Also, sometimes called a UUID. A unique, anonymous user ID for a given user profile that may be stored in a user’s browser cookie and/or in the ad server-side cookie store. Ad traffickers are not permitted to associate these IDs in any way with personally identifiable information (PII), and user IDs do not necessarily equate to a unique individual. An individual may also be associated with multiple user IDs due to clearing cookies or using multiple browsers and multiple devices. Additionally, for mobile devices, a unique user ID may be associated with multiple device IDs (for example, Apple IDFA, OpenUDID, etc.).
A unique visitor is someone with a unique address who is entering a website for the first time that day (or some other specified period). Thus, a visitor that returns within the same day is not counted twice. A unique visitor count tells you how many different people there are in your audience during the time period, but not how much they used the site during the period.
Unreserved Fixed Rate
A type of inventory that has fixed pricing and incorporates a one seller-to-one buyer type of participation. Other terms used in the market to describe Unreserved Fixed Rate Digital Media Inventory include: Preferred Deals, Private Access and First Right of Refusal. Prioritization in the ad server, the Deal ID, data usage, transparency to buyer and pricing floors are other things to consider that impact Unreserved Fixed Rate digital media inventory.
Data about a user that is stored in a behavioral profile which may be used to match ad content to that user. Attributes can consist of demographic information (age, gender, geographical location), segment or cluster information (auto enthusiast), and retargeting information (visited Site X two days ago).
The willful act of a user to engage with an ad. Users may interact by a discrete device action like clicking on the ad, and/or tapping over an ad (or a portion of an ad). Rollover is not a valid user initiation action.
Video Ad Serving Template. This is an XML-based video ad serving protocol. It was created to provide a uniform way for video content to be transferred from ad servers to video players on web pages. For details, see the Interactive Advertising Bureau (IAB) VAST documentation.
Reviewing, inspecting or testing to establish and document that an ad unit, product, service or system meets regulatory or technical standards.
In the digital advertising industry, a Viewable Impression is a metric applied to ads which were actually viewable by a human when served. The measurement can be in part or entirely based on conditional parameters and is typically verified by a third party. There may or may not be a delivery guarantee between ad inventory buyers and sellers tied to a minimum threshold based on this measurement.
Video Player Ad-Serving Interface Definition. VAST supports relatively simple in-stream video ad formats that are not executable. VPAID was created to support more interactive rich media video formats. For more information, see the Interactive Advertising Bureau (IAB) VPAID documentation.
A list of web sites that an advertiser will permit its ads to be placed on. Websites not on this list will not be used to display ads for the advertiser. The opposite of this is blacklist.
The number of impressions won over the number of impressions bid.
Publisher realized revenue derived from ad unit, site, mobile app, or page audience traffic reflected as a percentage. Yield Management is the technology used by publishers to ensure maximum revenue generation.
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