GLOSSARY OF TERMS
In A-B testing, you unleash two different versions of a keyword,
advertisement, website, web/landing page, banner design or variable and
see which performs the best. You test version A vs. version B to see how
different versions perform.
The methodology in advertising of using randomized experiments with two
variants, A and B, which are the control and treatment in the controlled
For example, you might show app users different versions of the same
screens to see what works best. When done correctly, A/B can help you
increase your conversion rates, address problem screens and challenge your
assumptions about how to optimize your site.
When a user signs up, makes a purchase, or performs some other desired
action in response to an ad. Also called a conversion or action. See also CPA.
The cost to an advertiser to gain a new customer. Advertisers take into
consideration the amount of revenue potential from a potential customer
over a lifetime in order to determine the maximum acquisition cost.
A company that provides services such as planning, creating, and buying, and
tracking advertisements and ad campaigns on behalf of a client.
A user's browser asks an ad exchange or ad server to send an ad. The ad call
includes information from browser cookies and ad tag information such as
publisher ID, size, location, referring URL, etc.
An ecosystem through which advertisers, publishers, and networks meet and
do business on a unified platform or system. An ad exchange allows advertisers
and publishers to speak the same language in order to exchange data, set
prices, and ultimately serve an ad.
A company that serves as a broker between a group of publishers and a group
of advertisers. Networks traditionally aggregate publishers and advertisers and
handle remnant inventory, but can have a wide variety of business models and
Advertising networks offer publishers and developers a way to promote their
services and increase earnings. Generally ad networks place banners of your
application to be displayed in 3rd party apps (something you pay to
accomplish) or vise versa place 3rd party banners within your app (in which
case you will be paid).
An entity that shows its creatives on publisher web pages in order to
enhance brand awareness, induce the user to make a purchase, etc.
Preliminary software field test carried out by a team of users in order to find
bugs that were not found previously through other tests. The main purpose
of alpha testing is to refine the software product by finding (and fixing) the
bugs that were not discovered through previous tests.
Application Programming Interface. A way to interact with a piece of
(Average Revenue Per Paying User): This is the average amount of money
each individual paying user creates for you in terms of revenue. This figure is
calculated by dividing net revenue over the total paid user base number for
any given paid app.
(Average Revenue Per User): This is the average amount of money each
individual user creates for you in terms of revenue. This figure is calculated
by simply dividing net revenue over the total user base number for any
App Store Optimization (ASO) is the process of improving the visibility of a
mobile app (such as an iPhone, iPad, Android, or Windows Phone app) in an
app store (such as iTunes or Google Play for Android). App Store
Optimization is equivalent to search engine optimization. Specifically, app
store optimization includes the process of ranking highly in an app store's
search results and top charts rankings. ASO marketers agree that ranking
higher in search results and top charts rankings will drive more downloads
for an app.
A strategy used by advertisers to deliver relevant messaging to specific
target audiences. Built upon massive volumes of diverse user, location, app,
and 3rd party data.
Average Response Value
The average revenue value of each click, calculated as total revenue divided
by total clicks.
An acronym that describes business-to-business relationships or
applications. Many Web sites focus on B2B solutions that cater to a vertical
market, such as healthcare or automotive. These sites are for businesses
(think wholesale), and only other businesses can access them or make
Similarly, a B2B auction is used to liquidate unwanted capital assets, dispose
of excess inventory, and buy or sell equipment, parts, other products, and
services. One advantage of setting up a B2B Web site is the ability to
streamline operations between two businesses that already have a
relationship. Internet analysts predict that B2B will be the biggest sector on
Business to consumer is a business model in which a business’s main
customers are consumers. Common B2C web sites include online stores
selling books, music and videos.
Business to Employee or Business to Experts.
Inventory that is not pre-sold; i.e. remnant inventory. Can also refer to one ad
network filling unsold inventory for another ad network.
A basic image or flash display ad, rather than a popup, interstitial, etc.
An Internet service that provides free banner impressions to those willing to
place free banners on their sites. A typical exchange ratio is: for every two
banners one shows for free. In return, they get one of their banners shown free
on someone else’s site. The company running the banner exchange takes the
other impression and tries to sell it.
Information on the kinds of sites a user visits, the search terms they use, etc.
Using behavioral data, someone who looks at a lot of technology products can be
served an ad for a computer when they are on a sports site.
A bidding strategy is the way you calculate a bid in an ad auction. It can mean
bidding a flat CPM or bidding a variable price based on past click through or
A campaign is a set of bidding instructions that at minimum includes a bid price
for inventory. Most campaigns also include criteria such as a specific start and
end date, daily or overall budgets, frequency restrictions, and targeting based on
user or inventory data.
Content Delivery Network. A CDN delivers static content, such as creative image
or flash files. Usually a CDN provider has servers across the globe configured to
deliver content as quickly as possible, which is why it is typical for an ad server to
The percentage of customers who will stop using the product in a given period. In
other words, it's a figure equal to: 1 - Retention Rate.
When a user signs up, makes a purchase, or performs some other desired action
in response to an ad. Also called an acquisition or action, especially to distinguish
it from clicks in an acronym (CPC vs. CPA).
Cost per action/acquisition. A payment model in which advertisers pay for every
action, such as a sale or registration, completed as a result of a visitor clicking on
their advertisement. An "acquisition" is the same as a "conversion."
This is a structure to monetize various actions performed by users. Actions can
range from things such as downloading an application, to complete portions of a
game, to creating profile or account within an app, or the like and is defined by
the advertiser. The cost per action to be paid is set by the ad networks through
which this system is available. For example, using a pay-per-action advertising
banner, you as the advertiser will only pay an ad network when a user performs
your set action, regardless of how many people view the banner itself.
Cost per click is the most popular way to purchase traffic. With this method
of purchasing traffic, advertisers only pay for the traffic that goes to their
website. Prices typically range from 5¢ to over $25 per click. This is an ideal
method of payment for advertisers who need to guarantee that they only
pay for those surfers who click on the advertising link or banner and then go
to their site.
(Cost Per Install): A subset of CPA, with this structure advertisers only pay ad
networks if a user installs their application.
Cost per lead. A payment model in which advertisers pay for every lead or
customer inquiry that resulted from a visitor who clicked on a their
advertisement. Also known as cost per inquiry (CPI).
Cost per thousand ("mille"). A pricing model in which advertisers pay for
every 1000 impressions of their advertisement served. This is the standard
basic pricing model for online advertising. See also CPC and CPA.
Cost per Transaction. Cost per transaction method allows advertisers to pay
whenever a visitor who clicked on their advertisement generates a transaction,
usually a sale. Prices typically range from $1 to $25 or if a percentage of a sale,
10% to 25%. This is an ideal method of payment for advertisers who want to
guarantee only the number of paying customers as a result of an advertisement.
Pertaining to multiple devices (smartphones, tablets, feature phones, nonphone connected devices), carriers (AT&T, Verizon, Vodafone, etc.), or platforms
(iOS, Android, BlackBerry, Windows Phone, Symbian, etc.).
Cross promotion is when a developer/ publisher promotes their applications
within other products/ apps also created by them. It can also occur when two
developers/ publishers mutually agree to promote each others products w/o
needing to pay one another to do so.
The percentage of impressions that resulted in a visitor. CTR is calculated by
dividing the number of clicks with the number of impressions. For example if a
banner was clicked on 157 times after being displayed 1000 times, the banner
would have a click rate of ( 157 ÷ 1000 = .157 ) 15.7%. This is known as the
banner’s click-through rate. Usually, a number above 5% is considered very
good. The standard for graphical banner ads is 0.25%.
Daily active users. The number of unique users who launch/ visit a given
application at least once in a given day.
The process of selecting a target user group according to their demographic
characteristics (sex, location, age).
Provider/creator of mobile applications and sites. Developers range from large
entities (brands, portals, news sites, etc.) to individuals who focus on just a
handful of applications.
Deals which involve a transaction between the advertiser and the publisher
without an ad network. Such deals often lead to cross-promotional agreements.
Effective Cost Per Thousand. A translation of CPMs, CPCs, CPAs, and any other
pricing models so they can be compared to each other. eCPM is calculated by
dividing total earnings by total number of impressions in thousands. It is a great
performance measure for your various ad units, so when experimenting, you
can use eCPM to compare your results.
Acronym for the name of one of the most popular promotional services
currently available today - Free App A Day. It is often used to refer to all services
of this type.
Any web-enabled mobile phone that is not a smartphone.
Number of delivered ads / number of ad requests. 100% fill rate is
impossible to achieve. Network errors, timeouts and users leaving a
page/app before the ad is delivered are reasons that 100% fill rates are
(In App Purchase): Any purchases made by users directly within an
application or game.
A count of the number of times an ad unit appears on a mobile device.
An one-time demonstration of a given advertisement banner to a given user
within a single given application.
In-banner video creatives are played in standard banner placements rather
than in video players.
In-stream video creatives are played in video players on web pages.
System where users are given an incentive to download an advertised
application via offers such as bonuses, unlockable content, price deals, etc.
A high-impact video ad layered with interactive features that deliver a
uniquely mobile, actionable experience to customers.
An on-screen banner which shows users how to run an application.
The ad space available on mobile websites and applications.
The same as Viral Coefficient. It measures how many new, secondary users
an individual new user you acquire brings in over their lifetime.
In viral marketing the formula is roughly as follows:
i = number of invites sent by each customer (e.g. if each customer invites
five friends, i = 5)
c = percent conversion of each invite (e.g. if one in five invitees convert to
new users, c = 0.2)
k = i*c
A word or phrase entered into a search engine in an effort to get the search
engine to return matching and relevant results. Many web sites offer
advertising based on keyword targeting so an advertiser’s banner will only
show when a specific keyword(s) are entered.
Search terms or tags by which users can find an application in its given
mobile marketplace. For example, iTunes Connect developers can register
custom keywords for their app.
The page on a web site where one is taken after clicking on an
advertisement. While this can be any page, it is often a page designed to
expand on the service or product mentioned in the initial advertisement.
Loyal users can be categorized via a few different interpretations though
generally they are regarded as users who run a given application 3+ times.
Monthly active users. The number of unique users who visit an application
at least once during a given month.
A non-phone mobile device. This includes tablets, gaming devices, e-readers,
MP3 players, etc.
An area within an applications where users are offered various deals and
offers for products unrelated to the application itself. This is a good way to
monetize non paying users - who are invited to take certain actions in order
to get a given product for free. Advertisers pay to have their products
featured on applications’ offer walls.
This has many shades of meaning, but in general refers to finding slices of
inventory that provide a positive ROI for your campaigns. In the AppNexus
Console you can optimize to a Cost per Click (CPC) or Cost per Acquisition
App user, who makes a purchase. This term is used to distinguish those users
who use the free version of the app from those who made the subscription
or purchased something within app.
A type of window that appears behind the browser window of a Web site
that a user has visited. In contrast to a pop-up ad, which appears over (on
top of) the browser window, a pop-under is less obtrusive as it hides behind
other windows. Popunders are used extensively in advertising on the Web,
though advertising is not the only application for pop-under windows.
An ad that displays in a secondary browser window directly in front of the
initial browser window. See also Popunder.
Post-Click Campaign Action
The action a marketing campaign is driving the customer to take once an ad
is viewed (i.e., Place Call, Download Application, View Map, etc.).
Profit per 1000 (""mille"") impressions.
In real-time advertising, an auction happens when a publisher ad tag is
loaded from a webpage. Advertisers compete for that particular impression
based on their individual valuation of the user's worth at that time on that
site from that IP address. These valuations are submitted at the time of the
auction, rather then far in advance of the auction.
Return on Investment
Revenue per 1000 ("mille") impressions
'Software as a service' - Software delivery model in which software and
associated data are centrally hosted on the cloud.
Software Development Kit. A tool that enables developers to seamlessly
integrate mobile advertising into their applications, thus monetizing their
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
Search Engine Optimization is the ongoing process of making a site and its
content highly relevant for both search engines and searchers. SEO includes
technical tasks to make it easier for search engines to find and index a site
for the appropriate keywords, as well as marketing-focused tasks to make a
site more appealing to users. Successful search marketing helps a site gain
top positioning for relevant words and phrases.
Any web-enabled and application-enabled mobile phone that runs on an
operating system and offers the user more advanced capabilities beyond just
voice and mobile web access.
The release of a the app or other product or service to a limited audience.
Soft-launching is a method for gathering data on a product's usage and
acceptance in the marketplace, before making it generally available as a
hard launch or grand opening.
Supply Side Platform. Analogous to a Demand Side Platform, an SSP enables
publishers to access demand from a variety of networks, exchanges, and
platforms via one interface.
Time to first buy
Time from the install of the app to the first purchase
A target customer for advertisers; i.e. the person browsing the web who will
see an ad.
User Acquisition Cost
The price of acquiring a loyal user. This number represents the amount of
money you need to spend advertising your product in order to gain a single
User Generated Content
Content on a website that was posted by users, not the publisher. For
example Myspace or Facebook profiles. Different publishers have varying
levels of control over user generated content.
User Lifetime Value
This figure represents how much revenue a single user represents for an
application over their entire life-cycle of using it.
This figure represents the percentage of users who become regular users of
a given application versus all users which try it at least once. Retention rate
is determined by the quality of a given app and its regular upkeep.
The classification of advertisers by industry.