Frequent Advertising Terms and their Definitions

Frequent Advertising Terms and their Definitions
Frequent Advertising Terms and their Definitions

If you are a beginner in the field of advertising, we know you may be struggling with some of the specific terms and acronyms. We strongly advise you to research and understand advertising terms; not only to impress your co-workers and managers, but also to make your work easier and advance your skills. This short glossary is also recommended to professionals whose job is only tangential to advertising – at least you know what colleagues from the advertising department are referring to while talking in their specific jargon.

A/B testing

A measurement method used to determine how different versions of an ad perform. Usually two versions of the same ad or landing page are deployed simultaneously and then advertisers measure which version attracts a better response.

Abandonment

A user leaving the shopping cart with an item in it before completing the purchase.

Ad Banner

Images, videos, or interactive rich media displayed as ads on a webpage or in an app.

Ad blocker

Software used to prevent advertisements from being displayed to a user.

Online Adversting Computer

Online Adversting Computer

Ad Impressions

The number of times an ad has been served, no matter if the user saw it or interacted with the ad.

Affiliate marketing

Promoting products on websites which already have good traffic; the publisher is compensated for click-through or sales.

Affinity marketing

Selling products to customers by observing and using their buying patterns.

Bot

Software performing actions without human intervention.

Bounce rate

A website visit where the user has only accessed the page and did not interact with it before leaving the site.

Closing the loop

Knowing that a customer bought a product as a result of seeing an ad. Closing the loop is possible with e-commerce and a lot more difficult to determine with traditional commerce.

Cookie

Piece of information stored on a browser in order to identify that specific browser during audience activity and between sessions.

CPC (Cost per Click)

The price paid by an advertiser for one click on the ad bringing the potential customer to the intended destination.

CPI (Cost per Install)

A method of paying only when an app is downloaded.

Crawler

Software program visiting webpages to create indexes for search engines.

CTA

A phrase included in an ad or other types of content inviting the audience to take a specific action.

CTR (Click-Through Rate)

A metric determining the number of clicks an ad receives per number of impressions.

DMA (Designated Market Area)

A regional market defined by a certain population centre.

Google Adwords

Google Adwords

Firewall

Software controlling the traffic between a computer and the Internet. The administrator decides which traffic will pass based on the desired level of security.

Geotargeting

Displaying ads to consumers based on their mobile device location and the ZIP code they submit when registering for a service.

HTML5

A technology allowing multimedia to be viewed on mobile devices without needing to install Adobe Flash.

Interstitial ads

An ad being delivered between two different content pages (as the user navigates from one page to another).

Keyword

A word included in an ad in order to trigger consumer attention and to be relevant to search engines.

KPI (Key Performance Indicator)

An indicator showing how effectively a company is achieving key business objectives.

Lag

The amount of time between making an online request and the moment when a response is received.

Landing page

A web page where users are directed after clicking on an ad.

Lead

Potential customer; in digital marketing, a person who has provided their contact information or signed up for a newsletter.

Native advertising

Advertising that is very similar in form to the channel being used to display it.

OTT (Over-The-Top)

Content accessed online without using a television service provider.

Overlays

Advertisement floating over webpage content and which cannot be blocked by ad-blocking software.

Real-time bidding (RTB)

An advertising method used to sell impressions to the highest bidder in real-time.

Registration

The process enabling website visitors to provide information about themselves.

Retargeting

Serving ads to people who have already visited a website or are included in a lead or customer database.

sale offer

Sale Offer

Rich media

Ads with special effects, such as quiz or game.

Social advertising

Running paid ads on social networks like Twitter, Facebook, and LinkedIn.

SSP (Supply-Side Platform)

Computer software used to sell advertising in an automated manner.

Target Audience

An ad’s intended audience defined by age, gender, location, interests, and behaviour.

View through

An interval of time used to measure consumer behaviour and actions after they have seen an ad.

Viewability

An ad’s chances of being seen by a viewer.

VTR

An indicator showing how many people saw an ad and consequently visited the advertiser’s website.

The advertising industry is extremely dynamic and new terms are created each year. Some of the entries in this article did not even exist a decade ago. What other terms would you add to this glossary?