'The Programmatic Jargon Buster' is an in-depth view from Sociomantic Labs by dunnhumby, that serves as a tool to help digital marketers cut through the noise of the marketing industry’s tough-to-decipher acronyms and expressions, so they can discover the true value behind the buzzwords.
2. The Programmatic Jargon Buster
is a tool to help digital marketers cut through the
noise of our industry’s tough-to-decipher
acronyms and expressions, so they can
discover the true value behind the buzzwords.
!
* Please note that all definitions are specific to how these terms are used in the digital marketing industry.
5. 1st Party Data
Information collected directly by an advertiser about its audience
or customers based on a direct relationship. In digital marketing,
this type of data is often collected using browser cookies to
measure on-website behaviors, but it can also be combined with
other types of online and offline data such as website analytics,
CRM profiles, business analytics, loyalty program data, yield or
revenue management data and more.
6. 2nd Party Data
In digital marketing, some have defined second-party
data as data that are collected by an advertiser (thereby it
is this entity’s first-party) and then traded with other non-
competitive advertisers. Depending on how you view it,
this data, when in the hands of a second advertiser that
did not collect it via a direct relationship, could also just
be considered third-party data.
7. 3rd Party Data
Information that is collected by an entity that does not
have a direct relationship with the users about which the
information is collected. In digital marketing, third-party
data is typically used when advertisers pay a data vendor
to help them reach users with specific characteristics.
8. Action
A measurable digital interaction, such as when the user
clicks on an ad, interacts with a landing page or web form
or completes a purchase. The measurability of actions in
digital has given rise to a wide range of performance
marketing channels. In the full-funnel marketing model, it
is the fourth stage in the customer journey, after Desire
and before Loyalty.
9. Ad Space
Area of a website set aside for online advertisements.
Advocacy
The sixth and final stage of the full-funnel marketing
model, following Loyalty, in which a customer becomes
brand advocate and convinces others to purchase
product.
Acquisition
Act of getting new customers.
10. Ad Impression
When an ad is displayed on a page, regardless of
whether the ad has been clicked on or not.
Ad Exchange
Digital marketplace that enables advertisers and
publishers to buy and sell advertising space, often
through real-time auctions.
Ad Server
A server that stores advertisements for online marketing
and delivers them to website visitors.
11. Agency Trading Desk
A centralized, service-based organization that serves as
a managed service layer, typically on top of a licensed
demand-side platform (DSP) and other audience buying
technologies; manages programmatic, bid-based media
and audience buying. Works as an agency’s internal tool
for programmatic media buying.
Awareness
First stage of full-funnel marketing model, before Interest,
when customer becomes aware of the existence of a
brand, product or service.
12. Bid
With regards to real-time bidding (RTB), the bid is the
price offer put forward by an advertiser via a demand-
side platform for an ad impression that is put into the real-
time auction. In most RTB models, the winning bidder
pays once cent more than the second-highest bid
placed.
Banner ad
Form of advertising on the World Wide Web delivered by
an ad server. This form of online advertising entails
embedding an image-based advertisement into a web
page. It is intended to attract traffic to a website by linking
to the website of the advertiser.
13. CLV (Customer Lifetime Value)
Prediction of the net profit attributed to the entire future relationship
with a customer. The prediction model can have varying levels of
sophistication and accuracy, ranging from a crude heuristic to the use
of complex predictive analytics techniques.
14. AdSpace.
the area of a website or Web page dedicated to online
advertisements.
Advocacy.
the sixth (last) stage of full funnel marketing model
when a customer becomes brand advocate and
convinces other to purchase product.
Aquisition.
the act of getting new customers.
Bid.
a form of advertising on the World Wide Web delivered
by an ad server. This form of online advertising entails
embedding an advertisement into a web page. It is
intended to attract traffic to a website by linking to the
website of the advertiser.
Click-Through-Rate (CTR)
A measure of the share of ad impressions that leads to a click.
Conversion
Happens when someone clicks an ad and then
completes a pre-defined action, such as completion of a
lead form or online transaction.
Conversion Rate (CR)
A measure of the percentage of ad clicks that resulted in
conversions. It is calculated by dividing the number of
conversions by the number of clicks and multiplying by
100.
15. AdSpace.
the area of a website or Web page dedicated to online
advertisements.
Advocacy.
the sixth (last) stage of full funnel marketing model
when a customer becomes brand advocate and
convinces other to purchase product.
Aquisition.
the act of getting new customers.
Bid.
a form of advertising on the World Wide Web delivered
by an ad server. This form of online advertising entails
embedding an advertisement into a web page. It is
intended to attract traffic to a website by linking to the
website of the advertiser.
Cookie
Small piece of data sent from a website and stored in a user's
web browser while the user is browsing that website.
Cost per Action (CPA)
A pricing model for online advertising in which the
advertiser pays only for the completion of a specified
action, such as the completion of a lead form (contact
request, newsletter sign up, registration etc.), double opt-
in or purchase. Even when the pricing model for a
campaign is not CPA, a CPA target may can set to
measure performance.
Cost per Click (CPC)
A pricing model for online advertising in which the
advertiser pays only when a user clicks a the
advertisement.
16. AdSpace.
the area of a website or Web page dedicated to online
advertisements.
Advocacy.
the sixth (last) stage of full funnel marketing model
when a customer becomes brand advocate and
convinces other to purchase product.
Aquisition.
the act of getting new customers.
Bid.
a form of advertising on the World Wide Web delivered
by an ad server. This form of online advertising entails
embedding an advertisement into a web page. It is
intended to attract traffic to a website by linking to the
website of the advertiser.
Cost per Mille (CPM)
A pricing model for (online) advertising in which the advertiser
pays a given price for each 1000 ad impressions. This was the
standard pricing model used in traditional print advertising and
is one of the oldest pricing models used in online today.
Cost per Order (CPO)
Also sometimes CPP (cost per purchase), this is a
measure of the cost spent to generate an online order or
purchase.
Cross-selling.
Action or practice of selling an additional product or
service to an existing customer, especially based on
previous purchases.
17. Demand-side platform (DSP)
A demand-side platform (DSP) is a technology platform that allows
buyers of digital advertising inventory to manage multiple ad exchange
and data exchange accounts through one interface. The key
functionality provided by a DSP is the ability to purchase display
advertising programmatically via real-time bidding (RTB), using data to
determine the value of individual ad impressions in real-time.
18. Desire
Third stage of full-funnel marketing model, after Interest and
before Action, when a potential customer has intent to buy.
Display
Graphical advertising on the World Wide Web that appears next
to content on web pages, IM applications, email, etc. These ads,
often referred to as banners, come in standardized ad sizes,
and can include text, logos, pictures, or more recently, rich
media and video.
Dynamic Creative Optimization
The use of programamtic technologies to automatically optimize
19. Effective CPA (eCPA)
A measure of the actual costs spent to generate a pre-defined action.
Whereas the CPA is usually a target given before the start of a
campaign, the eCPA is the measure of the actual results of that
campaign. A comparison of the two can be a measure of campaign
success.
20. Full-funnel
A marketing strategy or tool which allows the marketer to address
potential buyers throughout the different stages of the purchase funnel,
from Awareness, to Interest, to Desire to Action, which is placed at the
bottom of the funnel. (The funnel shape is meant to refer to the number
of users in each category, which narrows with each stage.) In some
more recent models, the “funnel” is swapped for an hourglass shape,
and beyond the “action” point there is Loyalty and Advocacy.
21. Facebook Exchange (FBX)
Real-time bidding marketplace which allows third-party
websites to use real-time bidding to purchase ads on the right-
hand column and newsfeed ad spaces on Facebook.
Flash
Multimedia and software platform used for creating vector
graphics, animation, games and rich Internet applications (RIAs)
that can be viewed, played and executed in Adobe Flash Player.
In order for Flash files to play, even in online ads, Adobe’s plugin
must first be installed on the target browser.
Frequency Capping
Restricting the number of times a specific user is shown
advertising. A “universal frequency cap” refers to the ability of a
DSP to offer a comprehensive frequency cap number for its entire
range of inventory, rather than on a per-publisher or per-network
basis.
22. Geotargeting
Method of determining the approximate geolocation of a user and
delivering different content to that visitor based on his or her location,
such as country, region/state, city, zip code, organization, IP address, ISP
or other criteria.
23. HTML5
Core technology markup language of the Internet used for structuring
and presenting content for the World Wide Web. Unlike Flash, which
requires the installation of Adobe’s proprietary browser plugin, HTML5
is the one open, industry-standard, universal format for building dynamic
online creative.
24. Interest
Second stage of the full-funnel marketing model, after Awareness and
before Desire, when a potential customer has become more interested
in a brand.
25. JavaScript
An object-oriented computer programming language commonly
used to create interactive effects within web browsers. In digital
advertising it is often used to create and implement tracking
codes for websites.
26. Key Performance Indicator (KPI)
Metric used to quantify objectives that reflect the strategic performance of
online marketing campaigns. Marketers use a range of use KPIs to evaluate
their success at reaching targets. Examples are Click-Through-Rate,
Conversion Rate, Return on (Marketing) Investment, Time on Site and
Bounce Rate.
27. Loyalty
Fifth stage of full funnel marketing model, after Action and before Advocacy,
in which a converted customer (someone who has already made a
purchase) returns to the brand to buy again.
Lead
When a user completes a sign-up or contact form or otherwise
indicates interest in an advertiser’s offer by offering contact
details or other personal information.
28. M-commerce
An abbreviation that stands for “mobile commerce” and refers to electronic
commerce (e-commerce) conducted on mobile devices.
29. Negative retargeting
In a retargeting campaign, this is the practice of moving a user into a new
segment after conversion so that s/he will either not be targeted any longer,
not be targeted for a given period, or be targeted with ads that do not
display the same items already purchased.
30. Omnichannel
A multichannel approach to sales that seeks to provide the customer with a
seamless shopping experience, whether the customer is shopping online
from a desktop or mobile device, by telephone, in a bricks and mortar store
or by any other means.
31. Opt-in
A user’s indication that they are willing to participate in a given
exchange. According to the online advertising industry’s self-
regulatory framework provided by the EDAA (European Digital
Advertising Alliance), an opt-in is required in order to use any
personally identifiable data (PII) for online targeting or creative
optimization.
Opt-out
A user’s indication that they would not like to participate, for
example when a user opts out of receiving emails or receiving
personalized advertising from an entity. According to the online
advertising industry’s self-regulatory framework provided by
the EDAA (European Digital Advertising Alliance), advertisers
and their partners must provide an option for consumers to be
able to opt-out of behaviorally targeted advertising.
32. Programmatic
Digital advertising that is automatically triggered by any type of event and
deployed according to a set of rules applied by software and algorithms.
Human skills are still needed in programmatic campaigns as the campaigns
and rules are planned beforehand and established by marketers. Machine
learning is very often used in programmatic marketing to provide automated
optimization to pre-defined KPIs. Programmatic advertising includes but is
not limited to advertising purchased via real-time bidding.
33. Page view
Number of times a Web page is requested from a server and
displayed.
Pre-roll
Online video commercial that appears prior to an online
video, similar to a commercial break on TV. By purchased
pre-roll slots programmatically via RTB, marketers can
target individual users.
Private Market Place (PMP).
A closed/controlled real-time bidding market place that allows
publishers to control which demand partners, advertisers,
agencies, and brands buy specific parts of their inventory.
34. Real-time bidding (RTB)
Refers to the means by which ad inventory is bought and sold on a per-
impression basis, via a programmatic instantaneous auction, similar to
financial markets. With real-time bidding, advertising buyers bid on an
impression and, if the bid is won, the buyer’s ad is instantly displayed on the
publisher’s site.
35. Reach
In advertising, refers to the total number of different people or
households exposed, at least once, to a medium during a given
period. It can also be used as an adjective to describe campaigns that
are meant to increase awareness of a brand rather than drive
performance.
Retargeting
Form of online targeted advertising by which online advertising is
targeted to consumers based on their previous Internet actions,
in situations where these actions did not result in a sale or
conversion on an advertiser’s website.
Return on Investment (ROI)
A measure of the ratio of profits generated relative to advertising
costs spent. (Profit / Cost) x 100
36. Return on Ad Spend (ROAS)
A measure of the ratio of revenues generated as a result of a
particular marketing campaign relative to advertising costs spent.
(Revenue / Ad Spend) x 100
Rich media
Type of online advertising that involves some kind of user
interaction. The initial load of a Rich Media ad is 40K or more.
While text ads sell with words, and display ads sell with pictures,
Rich Media ads offer more ways to involve an audience with an
ad. The ad can expand, float, peel down, etc. Sometimes video
advertising online is also treated as rich media.
37. Streaming CRM
A dynamic display advertising technology that allows advertisers to
combine real-time user data streamed from their websites combined with
historical user data from CRM systems to drive more personalized online
advertising using programmatic buying and messaging solutions.
Supply Side Platform (SSP)
Technology platform that enables online publishers to manage
their advertising impression inventory and maximize revenue from
digital media.
38. Targeting
Reaching specific consumer segments with advertising based on various
traits such as demographics, psychographics, interests, behavioral variables
(such as product purchase history or website activity), etc., or the use of
other indicators that serve as a proxy of these desired traits.
39. Upselling
Action or practice of selling more expensive or higher-margin items,
upgrades or other add-ons to an existing customer to increase revenues or
profits
Unique User (UU)
Sometimes instead Unique Visitor, this essentially refers to the cookie or
other identifier used to identify a particular browser, and serves as the key
measure of website traffic for websites. A single person (Real user) may use
more computers/browsers or delete their cookies and thus be identified as
multiple “Unique Users”.
40. World Wide Web WWW
information system of interlinked hypertext documents that are accessed via
the Internet. It has also commonly become known simply as the Web.
41. XML
A data delivery language that is often used to deliver product feeds for
online shops.
42. Yield
The income return on an investment. Real-time bidding was introduced as a
way for both publishers and advertisers to better manage yield associated
with online advertising.
43. Zero Win Rate
In real-time bidding, refers to the situation that no winning bids are coming
through from a particular buying partner, which usually indicates an error.
44. About Sociomantic Labs
!
Sociomantic Labs, a dunnhumby company, provides programmatic
display advertising solutions for online, mobile and social. The company’s
proprietary Streaming CRM™ technology allows the world’s leading
advertisers to harness the value of their CRM and other first-party data
assets to deliver individually personalized, dynamic ads for the full funnel.
This results in broader reach, more new customers and increased loyalty
of existing customers. Sociomantic has been profitable since its founding
in Berlin in 2009 and has grown organically to more than 250 employees
serving over 70 markets across six continents today.