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Mobile Marketing for Developers - Glossary of Terms

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  • 2. Term Description A-B testing 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. A/B Testing The methodology in advertising of using randomized experiments with two variants, A and B, which are the control and treatment in the controlled experiment. 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. Acquisition 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. Acquisition Cost 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.
  • 3. Term Description Ad Agency A company that provides services such as planning, creating, and buying, and tracking advertisements and ad campaigns on behalf of a client. Ad Call 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. Ad Exchange 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. Ad Network 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 clients. 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).
  • 4. Term Description Advertiser An entity that shows its creatives on publisher web pages in order to enhance brand awareness, induce the user to make a purchase, etc. Alpha testing 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. API Application Programming Interface. A way to interact with a piece of software. ARPPU (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. ARPU (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 given app.
  • 5. Term Description ASO 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. Audience Targeting 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.
  • 6. Term Description B2B 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 purchases. 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 the Web. B2C 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. B2E Business to Employee or Business to Experts.
  • 7. Term Description Backfill Inventory that is not pre-sold; i.e. remnant inventory. Can also refer to one ad network filling unsold inventory for another ad network. Banner Ad A basic image or flash display ad, rather than a popup, interstitial, etc. Banner Exchange 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. Behavioral Data 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. Bidding Strategy 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 conversion rates. Campaign 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.
  • 8. Term Description CDN 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 use one. Churn rate 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. Conversion 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). 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.
  • 9. Term Description CPC 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. CPI (Cost Per Install): A subset of CPA, with this structure advertisers only pay ad networks if a user installs their application. CPL 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). CPM 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.
  • 10. Term Description CPT 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. Cross-Platform 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 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. CTR 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%.
  • 11. Term Description DAU Daily active users. The number of unique users who launch/ visit a given application at least once in a given day. Demographic Targeting The process of selecting a target user group according to their demographic characteristics (sex, location, age). Developer 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. Direct Deals Deals which involve a transaction between the advertiser and the publisher without an ad network. Such deals often lead to cross-promotional agreements. eCPM 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. FAAD 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.
  • 12. Term Description Feature Phone Any web-enabled mobile phone that is not a smartphone. Fill rate 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 impossible. IAP (In App Purchase): Any purchases made by users directly within an application or game. Impression 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 In-banner video creatives are played in standard banner placements rather than in video players. In-stream Video In-stream video creatives are played in video players on web pages. Incentive Installs System where users are given an incentive to download an advertised application via offers such as bonuses, unlockable content, price deals, etc.
  • 13. Term Description Interactive Video A high-impact video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers. Interstitial An on-screen banner which shows users how to run an application. Inventory The ad space available on mobile websites and applications. K-Factor 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
  • 14. Term Description Keyword 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. Landing Page 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 User Loyal users can be categorized via a few different interpretations though generally they are regarded as users who run a given application 3+ times. MAU Monthly active users. The number of unique users who visit an application at least once during a given month. Non-Phone Connected Device A non-phone mobile device. This includes tablets, gaming devices, e-readers, MP3 players, etc.
  • 15. Term Description Offer Wall 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. Optimization 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 (CPA). Paying user 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. Popunder 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.
  • 16. Term Description Popup 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.). PPM Profit per 1000 (""mille"") impressions. Real-Time Advertising 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. ROI Return on Investment RPM Revenue per 1000 ("mille") impressions SAAS 'Software as a service' - Software delivery model in which software and associated data are centrally hosted on the cloud.
  • 17. Term Description SDK Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications, thus monetizing their apps. Semantic Targeting 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 Contextual Targeting. SEO 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.
  • 18. Term Description Smartphone 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. Soft launch 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. SSP 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 User 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 loyal user.
  • 19. Term Description 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. User Retention 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. Vertical The classification of advertisers by industry.