63 Digital Advertising Terms Every Marketer Should Know

blog title taking notes 351x200 63 Digital Advertising Terms Every Marketer Should Know

Conversion: When launching a campaign, advertisers select a specific action or set of actions they want audiences to take. Each time a member of the audience takes this action, it is counted as a conversion. Conversions include actions such as signing up for a newsletter, or making a purchase on a website.

Conversion Pixel: A 1×1 image pixel placed on a web page (such as a thank-you page) which is triggered whenever a conversion occurs. Usually transparent.

Conversion Rate: Expressed as a percentage, a conversion rate can be calculated in two ways:

  • The first is by the taking the number of users who completed the conversion and dividing it by the total number of impressions served.
  • The second, more common way, is by taking the number of users who completed the conversion and dividing it by the total number of users who clicked on the ad.

Conversion Tracking: Monitoring how many conversions have occurred during any specific time period, and analyzing which ads led to the conversions.

Cookie: Information stored on a website visitor’s browser. A cookie tracks the visitor’s movement on the website and is used to remember the visitor’s behavior and preferences. These do not transfer across browsers.

Copy: Text in an ad, or text written to be delivered audibly.

Cost per Acquisition: The cost of acquiring one customer. Typically calculated by dividing the total amount spent on an advertising campaign by the number of customers acquired through that campaign.

Cost per Click (CPC): How much an advertiser pays, on average, for each ad click. CPC is calculated by dividing the total amount spent on a campaign by the number of clicks generated.

Cost per Lead (CPL): How much an advertiser pays, on average, for each ad click that results in a lead conversion. CPL is calculated by dividing the total amount spent on a campaign by the number of leads generated.

Cost per Thousand (CPM): Metric that shows how much it costs to serve 1,000 ad impressions. Also used as a standard measure for buying display ads, as inventory is generally sold on a CPM basis.

Cross-Device Targeting: Serving the same buyer targeted ads across multiple devices.

Cross-device targeting allows advertisers to reach their audiences in a sequential, repetitive manner regardless of the device they’re on, whether it’s a tablet, desktop or smartphone. This has a similar effect to the old-school tactics of gaining reach and frequency through using a range of channels such as radio + newspaper + billboards + direct mail. 

Demand-Side Platform (DSP): A system that allows advertisers to bid for and purchase inventory from multiple ad exchanges, through one single interface.

Direct Response: A campaign or ad specifically created to encourage audiences to take immediate action.

Display Advertising: A digital advertising format where graphic ads are shown on a web page. The term originated in newspapers, and the principles still apply.

Display ads can be graphics, videos, interactive images (a quiz or a game), and expandable (Also see: Expandable Banner).

The most common sizes for display ads are:

  • Banner: 728 x 90
  • Rectangle: 336 x 280
  • Skyscraper: 160 x 600
  • Square: 250 x 250

Email Advertising: Clickable banner ads and links that appear within emails and e-newsletters.

Expandable Banner: Banners that increase in size when a user hovers over them.

Frequency: The number of times an ad is served to the same consumer during a specific time period.

Since multiple users can often access the Internet from the same device, frequency is calculated based on the number of times an ad is delivered to a particular device’s browser.

Frequency Capping: Setting a limit on the amount of times an ad should be shown to a consumer within a specific time period.

Geographic Targeting: Selecting an audience for a campaign based on zip codes, designated marketing area (DMA), cities, states and countries.

Impression: See: Ad Impression

In-Stream Video Ads: Video ads played before, during or after the video content the publisher is delivering to the consumer.

Interstitial Ads: Ads that appear between two different content pages, served when a website visitor navigates from one page on a website to another. A best practice in mobile marketing is to avoid using an interstitial as a popup that blocks initial access. For example, when the user tries to access the Gotham Times on their mobile, they are interrupted by an interstitial ad (offering the Gotham Times app) that they have to either accept or close before they can proceed to the site.

Keyword: A specific word or phrase chosen by advertisers to trigger and include their ad within search engine results. The advertiser doing contextual advertising also chooses keywords, so that their ad will show up within pages that are returned for that keyword.

In search advertising, the position of the ad within the results is determined by bidding. The highest bidder on a keyword usually gets the top position.

Landing Page: The web page users are directed to after they click on a display or paid search ad.

Lead: A potential customer. In digital advertising a lead is someone who has given you their contact information, often by signing up for a newsletter or filling out a form to download an eBook or other gated content.

Lookalike Audience: If you’re like most businesses, you know who your customers are from a demographic and even psychographic point of view. A Lookalike Audience targets people who are similar to your existing customers which helps improve your conversion rates. You can use Lookalike Audiences when you’re running online display, Facebook, mobile display or just about any other kind of digital marketing campaign.

Mobile Search: Any Internet search conducted via a mobile device.

Native Advertising: Any paid advertising that is indistinguishable in form from the channel being used to present it.

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