Programmatic Marketing Glossary of Terms

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1 Programmatic Marketing Glossary of Terms

2 We re closing the knowledge gap between the ad technology space and brand marketers. Closing this gap will drive stronger alignment with strategic partners and stronger business results for brands. We ve prepared this glossary of programmatic marketing terms as a reference guide for you to further your understanding of this space and the players within it. You ll find this helpful as you re evaluating programmatic marketing partners. We ve organized the glossary into 5 categories: Programmatic Advertising Formats, How to Reach Your Customers Intelligently, How to Optimize Campaign Performance, The Programmatic Ecosystem, as well as How to Protect and Verify Your Campaign Performance. As always, we re happy to answer any questions you may have. Sincerely, Your Partners at Acuity 1

3 Contents Programmatic Advertising Formats... 3 How to Reach Your Consumers Intelligently... 7 How to Optimize Campaign Performance The Programmatic Ecosystem How to Protect and Verify Your Campaign Performance References

4 Programmatic Advertising Formats Programmatic Advertising Formats Ad Types Contextual Advertising Advertising that is targeted to a non-search Webpage based on the page s content, keywords, or category. These ads can be text or images. Advertisers can leverage existing keyboard-based paid search campaigns to access a larger audience. Display Advertising A form of Online advertising where an advertiser s message is shown on a destination webpage in a graphical format. Interstitial Ads Ads that appear between two content pages. Also known as transition ads, interstitial ads, splash pages and Flash pages. Overlay An ad unit that displays over the webpage content briefly when initiated. Programmatic Buying (Programmatic Marketing) The process of executing media buys in an automated fashion through digital platforms. 3

5 Programmatic Advertising Formats Retargeting The process of adjusting your online advertising creative, as well as purchasing strategy, based on the actions of consumers. The simplest example is spending more for the impressions of consumers who have not completed an order form on your website, as well as showing them a more influential creative. Real Time Bidding (RTB) A data-driven programmatic buying model allowing advertisers to bid on digital media (display, video, mobile, social, etc.) in real-time, at the impression level. Rich Media Advertisements with which users can interact with in a webpage format. These ads can include video, sound, or Flash. They include banners, buttons, transitionals and various over-the-page units such as floating ads, page take-overs, and tear-backs. Expandable Ads & Banners Rich Media ads that can be enlarged to dimensions greater than the initial dimensions of their webpage placement. This action is based on user interaction (sometimes the ad will briefly expand on its own to capture the user s attention). 4

6 Programmatic Advertising Formats Rising Star Display Ad Units Rising Stars are brand-focused ad units that offer more engagement within a larger-thanstandard unit size. Filmstrip An IAB Rising Stars ad unit template that is pixels, divided into five pixel segments that scroll by user interaction though a pixel placement window. Portrait An IAB Rising Star ad unit template that uses up to three interactive modules chosen (by the ad designer) from a variety of modular application options in a pixel space. Pushdown An IAB Rising Stars ad unit template designed for rich interaction in a space similar to, but larger than, an expanding leaderboard, with initial dimensions of pixels and expanded dimensions of pixels. Slider An IAB Rising Star Ad Unit template designed with an overlay slider (90 pixels high) that rests at the bottom of a Publisher s page and when prompted by user interaction, slides page content to the left for a canvas of pixels full of rich interaction possibilities for user engagement. 5

7 Programmatic Advertising Formats 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. These units include Leaderboard (728x90), Big Box (300x250) and Skyscraper (160x600). Video Ad Units This term refers to online advertising units containing video content. This content can be autoinitiated or user-initiated. These ads are typically 15 or 30 seconds long, skippable and nonskippable; served before, during and/or after a video stream on the internet. In-banner Video A Video delivered as part of (inside of) the display ad creative for a given placement rather than initiating the use of a Video player. Mid-roll Form of Online Video ad placement where the ad is played during a break in the middle of the content Video. Post-roll Form of Online Video ad placement where the advertisement is played after the content Video plays. 6

8 How to Reach Your Consumers Intelligently Pre-roll Form of Online Video ad placement where the advertisement is played before the content Video plays. How to Reach Your Consumers Intelligently Data and Audience Targeting Behavioral Targeting (Interest-based - Advertising) This term refers to several ways in which online advertising campaigns are made more effective by taking into consideration the actions of the consumer. Data needs to be collected to facilitate this process, and what is collected will vary based on the desires of the website and/or advertisers. Behavioural Data Data related to specific users as well as their historical patterns of interaction with websites and advertising content. AdChoices (Online Behavioral Advertising Self-Regulatory Program) Developed by leading industry associations to apply consumer-friendly standards to Online Behavioral Advertising across the Internet. The Principles of this program addresses public 7

9 How to Reach Your Consumers Intelligently education and industry accountability when it comes to the collection and use of online behavioural advertising data. Contextual Data Data related to the content and context of the specific webpage where the advertisement is run. Cookie A very small text file (i.e., program code) that is stored on a user s browser for the purpose of uniquely identifying that browser during audience activity and for authenticating, tracking and maintaining specific information about users. First-party cookies are those left on a computer by a Website that has been visited, while third-party cookies are those left by a domain different than the site being visited, such as an advertising server that has just delivered an ad to a computer. Data First Party First-party data is information owned directly by an advertiser about their own customers. This information may be generated and collected on external systems used by the advertiser, however it is gathered under an agreement that it is henceforth owned by the brand. 8

10 How to Reach Your Consumers Intelligently 3 rd Party Third-party data is information acquired through partnership with a data-provider or other external organization. It represents a consolidation of user data across a variety of touch points and can be licensed for use in data and ad targeting. Coupled with first-party data, this information gives advertisers a greater depth of consumer targeting for their campaigns. Geo- targeting Geo-targeting allows Advertisers to specify where ads will or will not be shown, based on the visitors or searchers location, enabling more localized and personalized results. Look- alikes/audience Modelling Potential customers modelled after an Advertiser s 1st party data (usually data from their customers who visit and make purchases from their websites). Attributes of the Advertiser s customers are matched against a larger audience, creating a pool of highly targetable and prequalified users. Opt- in Refers to an individual giving a company permission to use data collected from or about the individual for a particular reason, such as to market the company s products and services. 9

11 How to Reach Your Consumers Intelligently Opt-out When a company states that it plans to market its products and services to an individual unless the individual asks to be removed from the company s mailing list. Profiling The practice of tracking information about consumers interests by monitoring their movements online and creating a profile based on those interests and behaviours. Targeted Advertising A form of advertising in which ads are delivered to consumers based on demographics and geography, as well as other factors like interests and purchasing behavior. Tracking Pixel (Tags, Beacons) 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 has been accessed. These pixels are often used to identify when a consumer has completed a desired action online (i.e. visiting a purchase page). 10

12 How to Optimize Campaign Performance Tagging The process of adding a pixel to a webpage (usually the landing page and key pages for a campaign) which collects data on the visitors to those pages. This data is then used to make more informed buying decisions later on. How to Optimize Campaign Performance Measurement and Metrics for Programmatic Ad Interaction A popular measure of Rich Media campaign performance, identifying interactions within a unit, even if they do not result in a click-through. Interactions are captured when the user does one or more of the following: Clicks an Exit link, Makes the ad display in Full Screen mode, mouses over the ad. Frequency Capping This is a means of restricting (capping) the number of times (frequency) a specific visitor to a website is shown a particular advertisement. It is usually done to avoid banner fatigue and to improve performance. 11

13 How to Optimize Campaign Performance Click-through Rate (CTR) The rate (expressed in a percentage) at which users click on an ad. This is calculated by dividing the total number of clicks by the total number of ad impressions. Conversion When a user performs a desired action in response to an online advertising campaign. A conversion could be a monetary transaction, such as a purchase made after clicking a link within the website. It could also include a voluntary act such as registering at a website, downloading a white paper, signing up for a web seminar or opting in to an newsletter. CPA (Cost-Per-Action) - A performance-based advertising model where payment is dependent upon an action that a user performs as a result of the ad. Dynamic Pricing The purchase price for an ad impression that is determined via a real-time auction rather than a predetermined fixed rate. Frequency The number of times an ad is delivered to the same browser in a single session or time period. A site can use cookies in order to manage (cap) the extent of ad frequency. 12

14 The Programmatic Ecosystem Frequency Distribution The number or proportion of individuals in an advertising target audience that have the opportunity-to-see an ad online. E.g. 1 time, 2 times, 3 times, 3 or more times (3+) etc. Impression A measurement of the number of times an online ad unit has been seen. Reach The number of users who have had the opportunity to see an ad unit from an online advertising campaign. The Programmatic Ecosystem Service Companies and their Offerings Ad Exchange A virtual marketplace where participating suppliers auction their impressions to eligible buyers. The ad exchange announces each impressions, in real time, and asks buyers (represented by ad technology partners) if they are interested to buy said impression and at which price. 13

15 The Programmatic Ecosystem Ad Server/Serving Technology that stores display advertisements, delivers them to website visitors, monitors campaigns and create reports. Advertising Network (Ad Network) An entity that connects buyers and sellers of online advertising impressions. These companies can facilitate the purchasing of real time ad inventory. CRM Customer relationship management (CRM) is a broad term that consists of the processes a company uses to track and organize its contacts with current and prospective customers. Various tools exist to aggregate CRM data and leverage that information to increase the performance of online advertising campaigns. Data Management Platform (DMP) A centralized system for gathering first-party data, integrating with third-party data, and applying this data to one s advertising strategy. Demand Side Platform (DSP) These entities allow advertisers to manage their purchasing of online display advertising in realtime. DSPs purchase advertising for the advertisers through ad networks and exchanges. DSP 14

16 The Programmatic Ecosystem functionality varies, and includes things like allowing advertisers to manage their bid amounts, performance metrics and consumer targeting. Agency Trading Desk (ATD) A department or arm of an Agency that oversees programmatic buying. Many Agency holding companies have trading desks. Demand Side Platform (DSP) A technology platform which allows advertisers to manage their purchasing of online advertising in real-time. DSPs purchase advertising for advertisers through ad networks and exchanges. Supply Side Platform (SSP) A technology platform solely for the purpose of enabling publishers to manage and monetize their advertising impression inventory and maximize revenue from digital media. 15

17 How to Protect and Verify Your Campaign Performance How to Protect and Verify Your Campaign Performance Viewability and Brand Safety Fold The Fold is a term used to describe the point at which content on a screen is no longer visible. For instance, Above the Fold refers to a n ad or content that is viewable as soon as the webpage appears. Ad Verification A system that ensures every ad impression served is a quality impression, compliant with industry guidelines, as well as served and displayed exactly as intended. Bounce Rate The percentage of visitors to a particular website who navigate away from the site after viewing only one page. Brand Safety Contextual technology aimed at ensuring advertisement does not display on webpages where its appearance might negatively impact the Advertiser s brand. 16

18 How to Protect and Verify Your Campaign Performance Eyeballs Colloquial reference to the number of people who view, or lay their eyes on, a certain online advertisement. Fraud Essentially, online advertising fraud committed against advertisers is any form of malicious activities designed to misrepresent the performance of an online advertising campaign or to inflate the costs of said activities. Viewability A term used to reference an ad unit s opportunity to be seen by a consumer. There are several factors that impact an ad s viewability, including page location and the user s time on said page. Generally, display ads are considered viewable when on screen for more than 1 second and with 50% or more of the ad loaded. For video, the same is true except that time on screen is 2 seconds. 17

19 References Ÿ Ÿ Ÿ Ÿ IAB Canada IAB USA AdAge.com Ad ExchangerWikipedia 18

20 To learn more about targeting and connecting intelligently, start here: Target and Connect Intelligently

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