Digital Advertising Glossary for Marketers

B2B: business to business. This business model refers to one business conducting commercial transactions with another business (ex: wholesale products or business services).

B2C: business to customer. This business model involves businesses selling to customers directly (ex: retail stores or ecommerce).

CAN-SPAM: Controlling the Assault of Non-Solicited Pornography and Marketing. A law that sets the rules for commercial messages and emails; recipients have the right to opt out of emails.

CMS: content management system. Software applications or programs that create, manage, and distribute digital content, such as a website (ex: WordPress).

CPC: cost per click. Model for internet advertising where an advertiser pays the publisher whenever the ad is clicked.

CPL: cost per lead. The costs associated with generating a lead (includes advertising, collateral creation, web hosting, etc.).

CPA: cost per acquisition. Model for internet advertising where an advertiser pays for an acquisition (ex: registration or newsletter signup).

CPM: cost per mille. The cost a publisher charges to advertise on their platform per 1,000 ad impressions.

CR: conversion rate. Percentage of people who take action; calculated by taking the number of people who acted on an ad divided by the number who could have acted.

CTA: call to action. Device that is designed to promote an immediate response; the desired next step for users (ex: Learn More, Buy Now, or Sign Up).

CTR: click-through rate. Percentage of people who clicked on your ad; calculated by taking the number of clicks on an ad divided by the number of times an ad was shown.

CX: customer experience. All of the interactions a customer has with a company; every interaction that occurs throughout the buying process.

DDM: data-driven marketing. Making marketing decisions based on data to determine how to market, which channels to use, and who to target.

DMA: designated market area. Regions or locations that you target (ex: state, country, or county).

DSP: demand-side platform. Advertisers can use this technology to purchase display ad inventory across real-time bidding (RTB) networks; identify criteria, and the DSP places ad buys on your behalf.

eCP“x”: effective cost per “blank.” Determine average spend based on the total budget and the results of your digital ad campaign to understand effectiveness of your campaign.

GA: Google Analytics. A tool from Google to track and analyze traffic to your website, apps, or ads; data-driven tool that provides information on audience, reach, activity, and metrics.

GDN: Google Display Network. The network of more than 2 million websites that Google can show display ads on; able to reach more than 90% of internet users.

KPI: key performance indicators. Metrics that are used to evaluate the success of campaigns, ads, or marketing strategies; goals of a digital ad campaign and indicators of success.

MAP: marketing automation platform. Marketers use this technology to convert prospects or leads into customers; automated solutions remove manually repetitive processes (ex: MailChimp’s email campaign service or Marketo’s marketing automation software).

NPS: Net Promoter Score. Metric based on customer satisfaction survey to determine how likely consumers are to recommend your company to others; indicated on a scale of 0 to 10.

PPC: pay per click. Method for digital ads where publishers charge advertisers when an action is taken on an ad (ex: click).

PPV: pay per view. Ad model where an advertiser pays the publisher when their website or ad is displayed; ensures that videos, ads, or images are visible and 100% in view.

ROAS: return on ad spend. Metric to determine revenue received per dollar spent on an ad source; calculated by dividing generated revenue from a campaign by the cost of the campaign.

ROI: return on investment. Metric to determine revenue received per dollar spent on an investment (ex: sales lift or a direct sale).

RON: run of network. A channel that allows advertisers to deliver ads on a network that rotates ads; publisher may own multiple websites and the ad rotates within their network.

ROS: run of site. A channel that allows advertisers to deliver online ads on a specific website; rotation is not specific to a page but site-wide.

RPM: revenue per mille. Revenue received from 1,000 ad impressions; measured by ad publishers.

RTB: real-time bidding. Process by which ad inventory is sold on a CPM basis; auction-style that is instantaneous.

SEM: search engine marketing. Paid ads that appear on search engine results pages; based on the search criteria and keywords as well as max budget.

SEO: search engine optimization. Improving search rankings and visibility through organic, or non-paid, methods.

SERP: search engine results page. Displayed by a search engine when a query is made.

SMART: Specific, Measurable, Attainable, Realistic, Time-Bound. Criteria for defining goals for a marketing or ad campaign; method used to outline steps to achieve goals.

SMM: social media marketing. Utilizing paid and organic social media channels to promote a business on social media platforms.

SOV: share of voice. The percentage of time your ad is seen when compared to other advertisers.

UGC: user-generated content. Content created by users instead of a brand; shared online or via social media.

UI: user interface. Visual elements and aspects that users interact with when visiting a website or app; includes screens, pages, etc.

UX: user experience. Complete experience for a user when browsing a website or using an application; how they interact with the site; tested to improve conversion rates and ease of use.

VTC: view through click. A metric used to determine effectiveness of ad campaigns; achieved when a user views an ad but does not click, then later visits your website and converts.