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The A to Z of Programmatic: 4th Edition

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Do the terms companion banner and quartiles cause question marks in your head? Digital advertising comes with its own vocabulary, and if you’re new to the industry, the terms can be downright puzzling.

The A to Z of Programmatic (formerly known as our Programmatic Jargon Buster) helps you look like a programmatic pro in front of your colleagues. This edition includes terms across all different facets of programmatic, from mobile to in-app to video.

Download this guide to get a refresher on programmatic terms like:

• Day N
• Negative retargeting
• Quartiles
• In-stream and out-stream video
• Companion banner
• And many more!

To download the presentation, please go to this page: https://www.sociomantic.com/the-a-to-z-of-programmatic-4th-edition/

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The A to Z of Programmatic: 4th Edition

  1. 1. The A to Z of Programmatic
  2. 2. What is it? The A to Z of Programmatic 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.
  3. 3. 1, 2, 3 1st Party Data 2nd Party Data 3rd Party Data Aa Acquisition Action Ad Exchange Ad Fraud Ad Impression Ad Network Ad Server Ad Space Advocacy Agency Trading Desk App Analytics Tool (AAT) App Funnel App Re-Engagement App Store Optimization (ASO) Application Programming Interface (API) Average Revenue Per User (ARPU) Awareness Bb Banner Ad Bid Bid Request Cc Click-Through Rate (CTR) Companion Banner Completion Rate Conversion Conversion Rate (CR) Cookie Cost Per Action (CPA) Cost Per Click (CPC) Cost Per Completed View (CPCV) Cost Per Mille (CPM) Cost Per Order (CPO) Cost Per View (CPV) Cross-Device Recognition Cross-Selling Customer Lifetime Value (CLV) Index Click a term to go directly to the definition. Return to Index
  4. 4. Dd Daily Active Users (DAU) Data Management Platform
 (DMP) Day N (dN) Demand-Side Platform (DSP) Desire Digital Video Landscape Display Dynamic Creative Optimization (DCO) Ee Effective CPA (eCPA) Engagement Rate Event Ff Frequency Capping Full Funnel Gg Geotargeting Hh HTML5 Ii In-App Advertising In-Banner Video In-Stream Video Interest Jj JavaScript Kk Key Performance Indicator (KPI) Ll Lead Loyalty Mm M-Commerce Monthly Active User (MAU) Nn Native Advertising Native Video Negative Retargeting Oo Omnichannel Open Exchange Open RTB Opt-In Opt-Out Return to Index
  5. 5. Out-Stream Video Pp Page View Preferred Deal Pre-Roll Price Floor Private Auction Private Marketplace (PMP) Programmatic Programmatic Direct Deal Programmatic Video Rr Reach Real-Time Bidding (RTB) Retargeting Retention Rate Return on Ad Spend (ROAS) Return on Investment (ROI) Rich Media Ss Session Session Interval Session Length Software Development Kit (SDK) SSL Certificate Streaming CRM Supply-Side Platform (SSP) Tt Targeting Uu Unique User Upselling Vv Vertical Video Video Completion Rate (VCR) Viewability View Length (Quartiles) View-Through Rate (VTR) Ww Weekly Active Users (WAU) World Wide Web (WWW) Xx XML Yy Yield Zz Zero Win Rate Return to Index
  6. 6. 1st Party Data Information collected directly by an advertiser about its audience or customers based on a direct relationship. 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.
  7. 7. 2nd Party Data Data that is collected by an advertiser (which makes it that entity’s first-party) and is 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. 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. Third-party data is typically used when advertisers pay a data vendor
 to help them reach users with specific characteristics.
  8. 8. Act of getting new customers. Acquisition
  9. 9. Action A measureable digital interaction, such as when the user clicks the 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. Ad Exchange Digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions.
  10. 10. Ad Fraud Any type of illegal activity of online advertising including non-human traffic, malware that redirects users to third party websites or multiple ads placed on top of each other so that advertisers are charged for ad placements that are never even visible to website visitors. Ad fraud is a growing problem in the online advertising industry and organizations like the Interactive Advertising Bureau (IAB) are working hard to reduce the amount of ad fraud in the industry. Ad Impression When an ad is displayed on a page, regardless of whether the ad has been clicked on or not. Ad Network Ad networks aggregate supply (inventory) and demand (ads) and in most cases add their own third-party data as well as targeting and optimization technologies. Ad networks often monetize by arbitraging through re-selling.
  11. 11. A server that stores advertisements for online marketing and delivers them to website visitors. Ad Space Area of a website set aside for online advertisements. Ad Server 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.
  12. 12. 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. Often abbreviated ATD.
  13. 13. App Analytics Tool (AAT) A tool to measure and analyze the traffic/user behaviors of mobile apps. Most of the ATTs have their software development kits (SDKs) integrated in the app of the client, and in this way can measure third-party vendors, passing user-level data back to the app owner.
  14. 14. A set of events that provides insight into how users interact with a mobile app. App funnels allow tracking of user behavior paths leading to in-app actions, such as a purchase. App Re-Engagement Two out of three mobile apps are downloaded and never opened. A re- engagement campaign is run with the intent of driving in-app actions from app users
 who have already have downloaded a mobile app. App Funnel App Store
 Optimization (ASO) The process of adjusting the presentation of a mobile app or its features in order to gain a higher rank higher app store search results. The main purpose of ASO is to increase visibility to potential users. The practice includes optimization of elements such as: title, keywords, description and images/ screenshots.
  15. 15. Application Programming Interface (API) A set of definitions, protocols and tools for building software and applications. An API specifies how software components should interact and APIs are used when programming graphical user interface (GUI) components. A good API makes it easier to develop a program by providing all the building blocks. A programmer then puts the blocks together. Average Revenue Per User (ARPU) A measure of the revenue that a business has from its business activities divided by the number of customers/users. Awareness First stage of full-funnel marketing model, before Interest, when a potential customer becomes aware of the existence of a brand, product or service.
  16. 16. 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. Banner Ad
  17. 17. 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 one cent more than the second- highest bid placed. Bid Request When a user loads a web page and an ad server calls the ad exchange for a given impression, it submits a bid request to all eligible buyers. Buyers then assess the value of the impression and submit bids in real-time (in a matter of milliseconds) to compete for the ad placement on this page.
  18. 18. A measure of the share of ad impressions that leads to a click. Click-Through Rate (CTR)
  19. 19. A clickable banner that appears next to a
 video ad. Completion Rate Also known as View-Through Rate (VTR) or Video Completion Rate (VCR). A KPI that shows the percentage of all video ads that play the entire duration of a video. Total number of video ads that play the entire duration divided by total number of video ads. Companion Banner Conversion 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.
  20. 20. Small piece of data sent from a website that is stored in a user's web browser while the user is browsing that website. Cookie 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
 the advertisement. Cost Per Completed View (CPCV) A KPI that shows the cost per completed view for each video ad: total ad spend divided by total completed views.
  21. 21. 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 Mille (CPM) Also sometimes CPP (cost per purchase), this is a measure of the cost spent to generate an online order or purchase. Cost Per Order (CPO)
  22. 22. Action or practice of selling an additional product or service to an existing customer, especially based on previous purchases. Cross-Selling Customer Lifetime Value (CLV) 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. A KPI that shows the cost per view for each video ad: total ad spend divided by total views. Cost Per View (CPV) Identifying a single user across multiple devices such as desktops, tablets, mobile devices, even wearables. There are two
 main methods of cross-device recognition: probabilistic (approximating a matched identification) and deterministic (guaranteeing a matched identification). Cross-Device Recognition
  23. 23. A measure of the average number of users who are active on a website or mobile app during the period of one day. Daily Active Users (DAU)
  24. 24. A mobile marketing term used when measuring user retention in mobile apps, where N refers to the number of days before the user returns to the app after installing. It’s often used to measure the quality of the traffic source, to gauge the relative efficiency of a channel in delivering active users. Day N (dN) DMPs enable companies to collect, store
 and sort large amounts of complex first- or third- party data, often in real-time. For publishers, DMPs are often used to store, analyze and package audience data; marketers might work with DMPs to help with using data for digital advertising according
 to different CRM-related taxonomies. Data Management Platform (DMP)
  25. 25. 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 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. Demand-Side Platform (DSP)
  26. 26. 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. Display Third stage of full-funnel marketing model, after Interest and before Action, when a potential customer has intent to buy. Desire Any environment where video ads are placed, including digital video inventory of programmatic video, walled gardens and direct buys. Digital Video Landscape
  27. 27. The use of programmatic technologies to automatically optimize the elements that appear in a digital display banner. Examples
 of elements that can be optimized on a per- user basis include products and offers, call-to- action, promotions and discounts, the colors
 or placement of button or other layers of the banner, ad copy and more. Dynamic Creative Optimization (DCO)
  28. 28. 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. Effective CPA (eCPA)
  29. 29. Different kind of actions that a user takes in a mobile application. Examples of events include app downloads, app opens, in-app purchases and more. Event A KPI that shows the percentage of interactions with a video ad: total number of interactions with the video ad divided by total number of views. Engagement Rate
  30. 30. 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. Frequency Capping
  31. 31. 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. Full Funnel
  32. 32. 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. Geotargeting 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.
  33. 33. Any advertising that is seen inside of a mobile application (“app”) as opposed to a mobile web browser. In-App Advertising
  34. 34. A form of video advertising that is played before (pre-roll), during (mid-roll) or after (post-roll) streaming video content — e.g., videos on YouTube or any website that others video content. In-Stream Video A video clip that plays within a display banner as opposed to another media format. In-banner videos rely on the existence of display ad inventory on the publisher’s webpage. As the format is not specially built for videos, the user experience is much poorer compared to native, in-stream or out-stream videos. In-Banner Video Second stage of the full-funnel marketing model, after Awareness and before Desire, when a potential customer has become more interested in a brand. Interest
  35. 35. 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. JavaScript 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.
  36. 36. 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. Lead 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. Loyalty
  37. 37. An abbreviation that stands for “mobile commerce” and refers to electronic commerce (e-commerce) conducted
 on mobile devices such as smartphones or tablets. M-Commerce A measure of the average number of users who are active on a website or mobile app during the period of one month. Monthly Active User (MAU)
  38. 38. For brand advertisers, native refers to creative that matches the look and feel
 of a publisher’s content, in order to create advertising that is less disruptive to the overall content experience. The most prominent digital example is Facebook’s Newsfeed advertising. Native Advertising A paid media format that naturally mimics the design of a page’s content. Native video ads usually include a headline and copy for the ad. Native Video
  39. 39. 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 or services already purchased. Negative Retargeting
  40. 40. 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 brick and mortar store or by any other means. Omnichannel
  41. 41. A real-time bidding protocol created by a group of technology companies in the programmatic industry that sets a list of standards for real- time bidding. The development of this protocol is overseen by the IAB. http://www.iab.net/guidelines/rtbproject Open RTB Also known as open auction, an open exchange is a public ad inventory auction place in which publishers can sell individual
 ad impressions to all programmatic buyers within a given supply-side platform or ad exchange through real-time bidding. Open Exchange
  42. 42. 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. Opt-Out 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-In
  43. 43. A form of video advertising that is played on a publisher page independently of streaming content. Out-Stream Video
  44. 44. Number of times a web page is requested from a server and displayed. Page View
  45. 45. 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. Pre-Roll Google AdX defines a “preferred deal” as a buying arrangement between one publisher and one programmatic buyer with a fixed floor price. In order to buy impressions, the buyer simply has to submit a bid higher than the floor price, in which case the inventory is always sold at the floor price. Usually, preferred deals receive the highest priority within a supply-side platform ad server chain. Preferred Deal The lowest CPM price publishers are willing
 to sell impressions to programmatic buyers in an auction. Price Floor
  46. 46. 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. Private Marketplace
 (PMP) In programmatic buying, a private auction works in much the same way as open real-time bidding auction, except that only select programmatic buyers are permitted to bid against a pre-agreed minimum floor price. Private Auction 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. Includes but is not limited to advertising purchased via real-time bidding. Programmatic
  47. 47. The automated, data-driven, real-time buying and selling process of video ads. Programmatic Video A deal between a publisher and one or more select programmatic buyers in which inventory is sold based on a pre-agreed floor price, usually in absence of any guaranteed spends associated with it. Programmatic Direct Deal
  48. 48. 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. Reach
  49. 49. 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. Real-Time Bidding (RTB) Form of online targeted advertising in
 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. Retargeting
  50. 50. In advertising, a measure of how much a
 brand manages to keep existing customers, sometimes with dimensions measuring customer activity levels. In app marketing, retention rates have to do with how frequently and recently a user has opened and interacted with the app. Retention Rate
  51. 51. 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 Return on Ad Spend (ROAS) The lowest CPM price publishers are willing
 to sell impressions to programmatic buyers in an auction. Return on Investment (ROI) 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. Rich Media
  52. 52. An occurrence of a user visiting a website or opening a mobile app, often defined by a specific period of activity. Session
  53. 53. A measure of the average length of time the user spends active on a website or app, typically counted from website/app open to close (or a period of inactivity). Session Length A set of tools that developers need to create applications. The type of SDK varies depending on the software, for example an iOS SDK is necessary for iOS apps, a java SDK is required for Android apps, and so forth. In the case of online advertising, an SDK can enable additional app functionality such as in-app event tracking. Software Development Kit (SDK) Session Interval A measure of the average of time between user sessions (measure between active periods).
  54. 54. 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 personalized online advertising with programmatic buying and messaging solutions. Streaming CRM SSL Certificate A data file that is installed on a web server in order to create a secure connection to send data and personal information over the web. Most often used for sensitive information like log-in and credit card information. Technology platform that enables online publishers to manage their advertising impression inventory and maximize
 revenue from digital media. Supply-Side Platform (SSP)
  55. 55. 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. Targeting Unique User Also known as 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 may use more computers/ browsers or delete their cookies and thus be identified as multiple “Unique Users.”
  56. 56. 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. Upselling
  57. 57. Video ads that appear in portrait mode. When viewed from a mobile device, vertical video ads take over the full screen, versus a horizontal video ad
 that appears on only 25% of the screen. Advertisers can reach a higher brand awareness with vertical video ads on mobile as there is no other content to distract the consumer. Vertical Video
  58. 58. A metric that refers to whether ad impressions are actually “in view” of the user. According to IAB standards, at least 50% of the ad has to be displayed on the screen for at least one second for it to be considered viewed. Viewability Video Completion Rate (VCR) Also known as Completion Rate or View- Through Rate (VTR). A KPI that shows the percentage of all video ads that play the entire duration of a video. Total number of video ads that play the entire duration divided by total number of video ads. The percentage of a video ad that is viewed continuously at a normal speed and tracked in quartile percentages (e.g., 25%, 50%, or 75%) to measure the success of an ad. View Length (Quartiles) View-Through Rate (VTR) Also known as Completion Rate or Video Completion Rate (VCR).
  59. 59. A measure of the average number
 of users who are active on a website
 or mobile app during the period of
 one week. Weekly Active Users (WAU)
  60. 60. Information system of interlinked hypertext documents that are accessed via the Internet. It has also commonly become known simply
 as the Web. World Wide Web (WWW)
  61. 61. A data delivery language that is
 often used to deliver product feeds
 for online shops. XML 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.
  62. 62. In real-time bidding, zero win rate refers to the situation that no winning bids are coming through from a particular buying partner, which usually indicates an error. Zero Win Rate
  63. 63. Sociomantic Labs, a dunnhumby company, provides personalized display advertising solutions to reach people online, on mobile web and in-app. The company’s proprietary Stream Platform enables the world’s leading advertisers to harness the value of CRM and other first-party data assets to deliver individually personalized, dynamic ads for every stage of the customer lifecycle. This results in broader reach, more new customers and increased loyalty of existing customers. Sociomantic was founded in Berlin in 2009, and today serves advertisers in more than 70 countries across six continents. www.sociomantic.com

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