Online Advertising Glossary

An ad auction is a process in online advertising where advertisers bid for ad placement on digital platforms such as search engines, social media sites, or websites. During the auction, advertisers specify the maximum amount they are willing to pay per click, impression, or conversion for their ad to appear in a particular context or audience. Factors that often influence ad placement include bid amount, ad relevance, ad quality, and audience targeting criteria.

The auction system typically determines ad placement based on a combination of bid value and ad quality score, ensuring that users see the most relevant and highest quality ads based on their search queries or browsing behavior.

An ad click occurs when a user interacts with an online advertisement by clicking on it, typically leading to a landing page or website linked to the ad. It is a key metric in digital advertising that helps measure the effectiveness of a campaign, as clicks indicate interest or engagement with the promoted content. For example, in pay-per-click (PPC) campaigns, advertisers are charged each time an ad click is made.

Ad copy is the written content used in advertisements, typically designed to attract attention, generate interest, and persuade the audience to take a specific action. It includes headlines, body copy, taglines, and calls-to-action (CTAs) that are designed to effectively communicate the advertiser's message within the constraints of the ad format and platform. Effective ad copy often uses persuasive language, storytelling, and emotional appeals to resonate with the target audience and drive desired outcomes such as clicks, conversions, or brand awareness.

Advertisers continually test and refine their ad copy to optimize performance and achieve their advertising goals in the highly competitive digital marketing landscape.

Ad extensions are additional information or features that can be added to online ads to provide users with more context and encourage engagement. They expand the functionality of the ad beyond the basic text or image, allowing advertisers to include additional details such as phone numbers, location information, links to specific pages on their website, or additional snippets of text.

Ad extensions increase the visibility and relevance of ads, making them more informative and engaging to users while improving ad performance metrics such as click-through and conversion rates. Available across multiple digital advertising platforms, including Google Ads and Bing Ads, ad extensions are essential tools for maximizing the effectiveness of ad campaigns.

An ad unit is a specific format or space used to display advertisements within digital content, such as a web page or mobile app. It can take many forms, including banners, videos, interstitials, native ads, or sponsored content, depending on the platform and layout. Ad units are designed to integrate seamlessly with the surrounding content while providing visibility and engagement opportunities for advertisers. Publishers typically define the size, placement, and specifications of the ad unit to ensure consistency and optimize the user experience while generating revenue from ad placements.

Ad units play a critical role in monetizing digital properties and facilitating the exchange of advertising inventory between publishers and advertisers.

AdSense is a contextual advertising program developed by Google that enables website owners to monetize their online content by displaying targeted ads. Website owners can sign up for AdSense and place ad code on their webpages, and Google’s automated system serves relevant ads based on the content and interests of visitors. AdSense offers multiple ad formats, including text, display, video, and rich media ads, providing flexibility to match a site's design and user experience. Publishers earn revenue through a pay-per-click (PPC) or pay-per-impression (CPM) model, with earnings based on the number of clicks or impressions generated by the ads displayed on their site.

AdSense is a popular monetization option for website owners, bloggers, and content creators looking to generate passive income from their online properties.

An advertising network is a platform that connects advertisers with publishers to facilitate the buying and selling of advertising space across various digital channels. It acts as an intermediary, allowing advertisers to reach their target audience by displaying ads on websites, mobile apps, or other digital platforms owned by publishers. Advertising networks offer advertisers a range of targeting options, ad formats, and pricing models while allowing publishers to monetize their online properties by displaying ads.

These networks often use technologies such as real-time bidding (RTB) and algorithms to match advertisers with relevant ad inventory, optimizing the effectiveness and efficiency of ad placements. Overall, ad networks play a critical role in the digital advertising ecosystem by enabling efficient transactions and maximizing the reach and impact of advertising campaigns.

An animated GIF, or Graphics Interchange Format, is a type of image file that supports animation by combining multiple frames into a single file. Each frame contains a static image, and when displayed sequentially, it creates the illusion of motion or animation. Animated GIFs are widely used on the Internet to convey short, looping animations, often for humorous or expressive purposes in social media posts, messaging applications, and online forums. They are popular because of their small file size, compatibility with most web browsers and social media platforms, and ease of creation using various software tools.

Animated GIFs have become a ubiquitous form of visual communication on the Internet, adding humor, emotion, and interactivity to online interactions.

Audience reach refers to the total number of individuals exposed to a marketing message or campaign within a given time frame. It measures the extent of the audience that the marketing efforts have reached. A higher audience reach typically indicates a broader impact and potential for engagement with the target market.

A banner ad is a form of online advertising that typically appears as an image or multimedia display placed on a web page. It serves as a clickable link to the advertiser’s website or landing page and is designed to attract users’ attention and drive traffic or conversions. Banner ads come in a variety of sizes and formats and often feature compelling visuals and concise messages to engage viewers and encourage interaction.

Banner exchange is a reciprocal arrangement between website owners to display each other’s banners or advertisements on their respective sites. It’s a form of online advertising where participating websites agree to display banners of other members in exchange for their banners being displayed elsewhere. Banner exchanges increase exposure and traffic while minimizing advertising costs.

In the context of online advertising, barter refers to the exchange of advertising space or services between two parties without the exchange of money. It involves trading ad space on one website for ad space on another, typically of equivalent value. Barter arrangements can be beneficial for businesses looking to expand their advertising reach without incurring additional costs.

Bounce rate is a metric used in web analytics to measure the percentage of visitors who navigate away from a website after viewing only one page. It indicates the level of engagement and relevance of a webpage to visitors, with lower bounce rates generally considered more favorable. A high bounce rate may suggest that visitors did not find the content or user experience compelling enough to explore further.

A bridge page, also known as a doorway page or gateway page, is a standalone web page designed to redirect visitors to another destination, typically within the same website. It serves as an intermediary between the initial entry point, such as an advertisement or search result, and the final destination, such as a product page or landing page. While bridge pages can be used legitimately to guide users through a website’s navigation, they can also be perceived as deceptive or manipulative if used solely to redirect traffic without providing valuable content or information.

A bumper ad is a short video advertisement, typically lasting up to six seconds, designed to deliver a quick and memorable message to viewers. It is often used in digital advertising campaigns, particularly on platforms like YouTube, where brevity and impact are essential. Bumper ads are effective for increasing brand awareness, conveying key messages, and capturing the attention of viewers in a concise format.

A button ad is a small graphical advertisement, usually displayed as a clickable button or icon, that directs users to a specific webpage or action when clicked. It is commonly used in digital marketing campaigns, appearing on websites, mobile apps, or emails, to promote products, services, or content. Button ads are designed to attract attention and encourage user interaction, often featuring compelling visuals or calls-to-action to drive clicks and engagement.

Classified advertising refers to the placement of text-based or display ads in online classified ad platforms or sections of websites. These ads typically promote goods, services, job vacancies, or events and are organized into specific categories or sections to make them easily searchable and accessible to users. Classified advertising provides businesses with a cost-effective way to reach targeted audiences locally or globally, and facilitates transactions between buyers and sellers.

Click-to-Call is a feature in online advertising that enables users to initiate phone calls directly from an ad by clicking on a phone number. It eliminates the need for users to manually dial a phone number, streamlining the process of contacting a business or service. Click-to-Call is particularly beneficial for businesses that rely on phone inquiries or appointments to drive conversions from their online advertising efforts.

Clickthrough refers to the act of clicking on a hyperlink, typically in an advertisement, email, or webpage, to navigate to a designated URL. It is a key metric in digital marketing that measures user engagement and the effectiveness of campaigns. For example, a high clickthrough rate (CTR) in an email campaign indicates that many recipients clicked on the included link to visit a landing page or website.

Customer Lifetime Value (CLV) is a metric that represents the total revenue a customer is expected to generate over their entire relationship with a business. It takes into account factors such as purchase history, average order value, and retention rates to determine the long-term value of a customer. Understanding CLV helps businesses make strategic decisions regarding customer acquisition, retention, and marketing investments.

Cost-Per-Acquisition (CPA) is a pricing model used in online advertising where advertisers pay a fee each time a specific action is completed, such as a sale, lead, or conversion. CPA campaigns aim to optimize marketing spending by focusing on the cost incurred to acquire a desired outcome rather than simply paying for ad impressions or clicks. Advertisers determine the acceptable cost for each acquisition and adjust their CPA campaigns to meet their performance and ROI targets.

Cost-Per-Conversion (CPC) is a metric used in online advertising that calculates the cost incurred for each conversion achieved, such as a sale, lead, or other desired action. It is calculated by dividing the total cost of advertising by the number of conversions generated. CPC provides advertisers with insights into the efficiency and effectiveness of their campaigns in driving desired outcomes, helping them optimize their advertising strategies to maximize return on investment (ROI).

Cost-Per-Download (CPD) is a pricing model used in online advertising where advertisers pay a fee for each instance in which their app or digital content is downloaded by users. It is commonly used in app marketing campaigns to acquire new users or increase the installation of mobile applications. CPD campaigns aim to optimize marketing spending by focusing on the cost incurred to acquire each download, allowing advertisers to track the effectiveness of their campaigns and adjust their strategies accordingly.

Cost-Per-Engagement (CPE) is a pricing model used in online advertising where advertisers pay a fee for each instance in which users engage with their ad. Engagement can include actions such as clicks, likes, shares, comments, or other interactions depending on the specific ad format and platform. CPE campaigns aim to optimize marketing spending by focusing on the cost incurred to generate meaningful interactions with the target audience, encouraging deeper engagement and connection with the brand or message.

Cost-Per-Mille (CPM) is a pricing model used in online advertising where advertisers pay a fee for every 1,000 impressions of their ad served. The term “mille” refers to one thousand impressions. CPM is commonly used for display advertising campaigns where the primary goal is to increase brand visibility and awareness, regardless of whether users interact with the ad.

Cost-Per-View (CPV) is a pricing model used in online advertising where advertisers pay a fee for each view or interaction with their video ad. The view is typically counted when a user watches a certain portion of the video, such as 30 seconds, or completes the entire video, depending on the platform’s specifications. CPV campaigns are common in video advertising and aim to optimize marketing spending by focusing on the cost incurred for each view of the ad, allowing advertisers to track engagement and measure the effectiveness of their video content.

Cross-channel marketing and attribution refer to the practice of tracking and analyzing customer interactions and engagements across multiple marketing channels to understand their contributions to conversions or sales. It involves attributing value to each touchpoint in the customer journey, regardless of the channel, to determine the impact of various marketing efforts on overall performance. By leveraging cross-channel marketing and attribution, businesses can optimize their marketing strategies, allocate resources effectively, and enhance customer experiences across all touchpoints.

A Call Tracking Number (CTN) is a unique phone number assigned to a specific marketing campaign or channel to track and measure inbound phone calls. It allows businesses to attribute phone call conversions to specific marketing efforts, such as advertisements, websites, or email campaigns. By using CTNs, businesses can gain insights into which marketing channels are driving phone call leads, enabling them to optimize their marketing strategies and allocate resources more effectively.

DV360, short for Display & Video 360, is a comprehensive platform for programmatic advertising management, developed by Google. It integrates multiple advertising channels, including display, video, native, and audio, into a single platform, allowing advertisers to manage and optimize their campaigns more efficiently. DV360 offers advanced targeting options, real-time bidding, and extensive reporting capabilities, empowering advertisers to reach their target audiences effectively and drive better campaign performance.

eCPM, or Effective Cost Per Mille, is a metric used in online advertising to measure the revenue generated per thousand impressions. It calculates the total revenue generated by an advertising campaign per thousand impressions, providing a standardized comparison across different advertising platforms and formats. eCPM helps advertisers and publishers evaluate the efficiency and profitability of their campaigns by taking into account both revenue and impressions.

Expanded Text Ads (ETAs) are a type of ad format used in online advertising platforms like Google Ads. They consist of a headline, two description lines, and a display URL, offering advertisers more space to convey their message compared to traditional text ads. ETAs are designed to maximize ad visibility and engagement by providing additional information about products, services, or promotions to potential customers.

Facebook Ads is an advertising platform provided by Facebook that allows businesses to create and target ads to specific audiences on the social media platform. It offers a variety of ad formats, including image, video, carousel, and slideshow ads, to promote products, services, or brand awareness. Facebook Ads provides detailed targeting options based on demographics, interests, behavior, and more, enabling advertisers to reach their ideal audience effectively.

Fixed costs refer to expenses that remain constant regardless of the level of advertising activity or campaign performance. These costs typically include fees for services such as ad creative development, platform access, or subscription fees for advertising tools. Unlike variable costs, which fluctuate with factors like ad spending or click-through rates, fixed costs remain stable over a specific period, regardless of campaign outcomes.

Google Ads is an online advertising platform developed by Google that allows businesses to display their ads on Google's search engine results pages (SERPs) and other Google properties. It works on a pay-per-click (PPC) model, where advertisers bid on keywords relevant to their target audience. When users search for those keywords, Google displays the ads, and advertisers only pay a fee when their ad is clicked.

Google My Business is a free online tool provided by Google that enables businesses to manage their online presence across various Google services, including Google Search and Google Maps. It allows businesses to create and update their business listings, providing important information such as address, phone number, hours of operation, and reviews. Google My Business listings help businesses increase visibility in local search results and connect with potential customers in their area.

Google Remarketing is a digital advertising strategy that targets users who have previously visited a website by displaying relevant ads as they browse other sites in the Google Display Network. It works by placing a remarketing tag on a website, which adds visitors to a list and serves them tailored ads to encourage return visits and conversions. This approach helps businesses reinforce brand awareness, re-engage potential customers, and improve conversion rates efficiently.

A house ad is an advertisement placed by a company to promote its products or services rather than selling ad space to external advertisers. It is typically used by publishers or website owners to fill unsold ad inventory or to promote their content. House ads can be an effective way for businesses to increase brand visibility, cross-promote products, or drive traffic to specific pages within their platform.

Imp-CVR, or Impression-to-Conversion Rate, measures the effectiveness of converting ad impressions into desired actions, such as purchases, sign-ups, or downloads. It calculates the percentage of users who take the desired action after being exposed to an ad impression. Imp-CVR is a critical metric in online advertising campaigns, providing insight into ad performance and the ability to optimize campaigns for better conversion results.

Instagram Ads are paid advertisements that appear on the Instagram platform, allowing businesses to reach targeted audiences and promote their products or services. These ads can appear in various formats, including photo ads, video ads, carousel ads, stories ads, and explore ads. Instagram Ads leverage the platform’s visual nature and engaged user base to drive brand awareness, engagement, and conversions.

An interstitial is a type of online advertisement that appears between two content pages or during transitions within a website or app. These ads typically cover the entire screen, often requiring users to dismiss them or wait for a few seconds before accessing the desired content. Interstitials can be used to deliver targeted messages or promotions to users and are commonly employed in mobile advertising campaigns.

MPU, or Mid-Position Unit, is a type of digital advertising format commonly used on websites and in emails. It typically appears in the middle of a webpage or email content, sandwiched between text or other elements. MPU ads are often square or rectangular and are designed to attract attention while complementing the surrounding content.

An online advertising glossary is a comprehensive list or dictionary of terms and definitions related to digital marketing and advertising. It includes terminology specific to various aspects of online advertising. This resource serves as a valuable reference tool for marketers, advertisers, and anyone involved in the digital advertising industry to better understand and navigate the complex landscape of online advertising.

Pass-Along Rate (PAR) is a metric used in marketing to measure the extent to which a piece of content, such as an advertisement or a message, is shared or forwarded to others by the initial recipient. It indicates the rate at which content is passed along from one person to another, amplifying its reach beyond the initial audience. A high PAR suggests that the content resonates with the audience and has the potential to go viral, while a low PAR may indicate a lack of engagement or interest.

A payment threshold is the minimum amount of accumulated earnings that must be reached before a publisher or advertiser receives payment from the ad network or platform. It ensures that payments are only issued once a certain revenue threshold has been met, streamlining payment processing and reducing transaction fees for smaller amounts. Once the earnings surpass the payment threshold, the ad network initiates the payment according to the agreed-upon payment schedule or terms.

A portal refers to a website or platform that serves as a central gateway or hub for users to access a wide range of content, services, and features. Portals often offer diverse functionalities such as email, news, search, and entertainment, attracting a large and varied audience. Advertisers may leverage portals to reach specific demographics or target audiences with their advertisements, taking advantage of the platform’s extensive reach and user engagement.

PPC, or pay-per-click, is an online advertising model in which advertisers pay a fee each time their ad is clicked. It’s commonly associated with search engine advertising platforms such as Google Ads and Bing Ads, where advertisers bid on keywords relevant to their target audience. PPC campaigns can be highly targeted and measurable, allowing advertisers to control their budget and track the effectiveness of their ads in real time.

Pay-Per-Lead (PPL) is a pricing model used in online advertising where advertisers pay for each qualified lead generated through their campaigns. Unlike pay-per-click (PPC) or pay-per-impression (CPM) models, payment is based on the acquisition of leads rather than clicks or impressions. PPL campaigns typically involve advertisers specifying criteria for what constitutes a qualified lead, such as filling out a form, downloading a whitepaper, or requesting a quote, and paying a predetermined amount for each lead that meets those criteria.

Pay per sale (PPS) is an affiliate marketing model where advertisers pay affiliates a commission only when a referred customer purchases. It’s a performance-based structure that incentivizes affiliates to drive sales rather than just traffic. For example, an online retailer might pay an affiliate a percentage of the sale value for each completed transaction resulting from the affiliate’s referral link.

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. It measures the ratio of the net profit generated by an investment to the initial investment cost, expressed as a percentage. A higher ROI indicates a more profitable investment, while a lower ROI suggests that the investment may not be as lucrative or efficient in generating returns.

Real-Time Bidding (RTB) is a programmatic advertising technology that enables the buying and selling of ad inventory in real-time auctions. It allows advertisers to bid on individual ad impressions as they become available, based on various targeting criteria and data points. RTB facilitates efficient and automated ad buying, allowing advertisers to optimize their campaigns in real time and reach specific audiences with greater precision and effectiveness.

Run-of-Network (RON) is an advertising placement strategy where ads are displayed across a network of websites without specific targeting. Instead of being targeted to particular audience segments or content categories, RON ads are distributed randomly or evenly across the network. While RON placements offer broad exposure and can be cost-effective, they may lack the precision and relevance of targeted advertising approaches.

Run-of-Site (ROS) is an advertising placement strategy where ads are displayed across all pages of a website, rather than being targeted to specific sections or audiences. It ensures that ads are seen by all visitors to the website, regardless of the content they are viewing or their demographic characteristics. While Run-of-Site placements provide broad exposure, they may not be as targeted or effective as placements that are tailored to specific audience segments or content contexts.

The target audience refers to a specific group of individuals or demographics that a product, service, or message is intended to reach and resonate with. Marketers identify their target audience based on factors such as age, gender, location, interests, behaviors, and buying habits. Tailoring marketing strategies and messaging to effectively reach and engage the target audience is critical to achieving successful results and maximizing return on investment.

A text ad is a form of online advertising that consists solely of text, without accompanying images or multimedia. These ads typically appear in designated spaces on websites, search engine results pages (SERPs), or within mobile applications, blending seamlessly with the surrounding content. Text ads are often used in pay-per-click (PPC) advertising campaigns, where advertisers bid on keywords to display their ads to users searching for related terms. They are concise, persuasive and designed to encourage users to click through to the advertiser's website or landing page to learn more or take action.

A trick banner is a type of online advertisement designed to deceive or mislead users by employing misleading or deceptive tactics to attract clicks. These banners often use misleading images, fake buttons, or deceptive language to entice users to click on the ad, leading them to unintended destinations or deceptive websites. Trick banners are typically used for malicious purposes such as phishing scams, malware distribution, or promoting fraudulent offers. They undermine user trust and can harm the reputation of advertisers and publishers who unknowingly host such ads.

TrueView is an ad format offered by YouTube that allows advertisers to create and deliver video ads to viewers on the platform. With TrueView, advertisers only pay when viewers choose to watch their ad, ensuring that ad dollars are spent on engaged viewers. TrueView ads can appear before, during or after YouTube videos, and viewers have the option to skip the ad after a few seconds, providing an easy-to-use and non-intrusive advertising experience. This format allows advertisers to reach a wide audience on YouTube while maintaining control over their budget and targeting options.

A vertical banner is a type of display advertising, typically presented in a tall, narrow format, often seen on websites or in physical locations such as trade shows or events. It is designed to attract attention and effectively communicate a message within a limited vertical space. Vertical banners are often used to create brand awareness or to highlight specific products or services.

YouTube ads are promotional messages that appear on the YouTube platform before, during, or after video content, as well as within search results or alongside other YouTube content. Advertisers can choose from a variety of formats, including skippable and non-skippable video ads, display ads, and overlay ads. With YouTube ads, businesses can reach a broad audience, target specific demographics and interests, and drive engagement and conversions through compelling visual content.

YouTube Advertising allows businesses to promote their products or services through various ad formats on YouTube, such as in-stream ads, discovery ads, and bumper ads. These ads can be targeted based on factors like search history, viewer demographics, or video content, helping advertisers reach specific audiences. For example, advertisers can create a campaign through Google Ads, choose their preferred ad format, and set targeting criteria to ensure their ads appear before or during relevant YouTube videos.