In the world of online ads, pubblicità programmatica is a big deal. This tech-powered, automatic way of doing things has changed how publishers and advertisers deal with their optimized ad space. Whether you are a publisher looking to monetize your inventory or an advertiser aiming to reach your targeted audience, understanding these key programmatic advertising terms could boost your revenue and improve your performance. In this article, we’ll explain most of these key terms, in a simple and easy way to understand.
The Ultimate Programmatic Advertising Glossary
Ad Exchange
An ad exchange are like busy markets where ads get bought and sold really fast. The ad exchange controls the matching process, advertiser´s demands with the publisher’s ad space. Publishers and advertisers can trade directly through ad exchanges, which makes the entire process very transparent since advertisers can see the available ad inventory before choosing where to put their money.
Ad formats
Ad formarts are the different types and sizes of ads you can find on a website or an App.
Ad Network
An Ad Network is a company that gathers inventory from a bunch of publishers facilitating the whole process of selling it.
Ad Revenue
Ad revenue is the income publishers earn from selling their ad inventory to advertisers through direct sales or automated ad marketplaces that use real-time auctions.
Ad Viewability
The Ad viewability is a metric that measures the actual visibility of an ad ensuring that is not only being displayed, but properly viewed for it to cause an impact. A high viewability rate translates to a very valuable ad inventory advertisers would like to splurge on.
Brand safety
Brand safety is based on a series of measures that publishers and advertisers adopt to create a great reputation. They protect them from being associated with risky content that could damage all the hard work behind their image. Brands avoid content that is inappropriate for digital advertising and publishers avoid displaying the same kind of ads.
Conversion Rate
Conversion rate is a metric that shows how many people complete a desire action out of all the users interactions.
Core Web Vitals
These are Google´s set of metrics to describe a website’s performance, providing insights of improvements to elevate user experience, search engine positioning, and most importantly ad revenue.
CPA (Cost Per Acquisition/Action)
CPA or Cost-Per Acquisition is a metric that measures the cost of users’ actions after seeing your ad. It helps you understand if your ads have an impact on the user.
CPC (Cost Per Click)
CPC or Cost-Per-Click is a metric that show how much advertisers pay for each click on their ads. This is important to see how the ad is performing and if it´s enough to click on them.
CPM (Cost Per Mille)
CPM or Cost-Per-Mille is a metric that shows how much an ad costs for every 1,000 views. It helps you see if ads are worth the money.
CTR (Click-Through Rate)
CTR or Click-Through-Rate is a metric that show the percentage of people that has clicked on an ad after seeing it.
Cumulative Layout Shift (CLS)
The CLS or Cumulative Layout Shift metric shows the visual stability as it loads. Measuring how big elements are and how far they move.
Data Management Platform (DMP)
DMPs or Data Management Platforms are like the brain of programmatic ads. They collect, organize and segment all the information about users. On one hand this helps publishers create monetizable audience segments and on the other hand advertisers run more efficient campaigns.
Demand-Side Platform (DSP)
DSPs or Demand-Side Platforms help advertisers buy publisher´s digital ad inventory across different offers through real-time bidding (RTB).
Direct Programmatic
Direct programmatic advertising is a programmatic media buying process that refers to a deal between a publisher and advertisers, where ad inventory is bought programmatically but without an auction. These are pre-negotiated deals where they agree on selling the ad space at a fixed Cost-Per-Mille (CPM).
Private Marketplaces (PMP)
A private market place is a programmatic media buying process that uses real-time auctions to buy and sell ad inventory, but unlike RTB, it is not available to all buyers. A PMP is restricted and only a selected group of advertisers have open access to a selected ad space.
Display ads
Display ads are a form of digital advertisement that uses, visual elements like video, fotos… That will direct users to different platforms for promotion.
Display advertising
A form of advertising where ads are lay out on a publisher´s space through a combination of visual elements, like text, animations, videos, or graphics.
Dynamic native ads
Dynamic Native ads are an upgrade to your everyday Direct Native Ad. By mixing the basic native ad formula with animated elements and interactivity.
eCPM (Effective Cost Per Mille)
eCPM is a metric that show publishers how much they earn for every 1,000 views, while CPM (Cost Per Mille) shows how much advertisers pay for the same views.
Fill rate
Fill rate is the ratio of ad requests to ads displayed. It is a crucial metric that shows the percentage of ad inventory that has been successfully occupied.
Floor price
Floor price is the minimum auction price a publisher sets for its ad inventory in an SSP, bids below this are automatically rejected.
Frequency
Frequency is a metric that shows how often users see an ad within an specific period.
Geotargeting
Geotargeting is an strategic technique that helps advertisers deliver ads based on user´s geographic locations.
Header Bidding
Header bidding is a programmatic technique that allows publishers to offer their ad inventory to multiple demand sources simultaneously.
Interaction to Next Paint (INP)
The INP metric is that measures the latency of user interaction. From when a user interacts with the page to when the site shows the next frame. Overall page responsiveness
Largest Content Paint (LCP)
The LCP metric measures loading performance. It measures how long it takes a webpage to start loading until the largest text block, video, or image is completely viewable.
Native ads
Native ads are a type of paid advertisements that are designed to blend seamlessly with content, matching the look and feel and style of the platform.
Real Time Bidding (RTB)
Real Time Bidding (RTB) is a programmatic advertising auction system that allows the real time transactions between advertisers and publisher for ad space inventory.
ROI (Return of Investment)
ROI or return of investment is a metric that shows how much profit or loss is generated based on the first investment.
ROAS (Return on Ad Spend)
ROAS or Return On Ad Spend is a metric that measures how much money is earn for every investment in advertising.
RPM (Revenue per Mille)
RPM or Revenue per Mille is a metric that shows how much money you make for every 1,000 monetizable page views. It includes all page views, not just those where ads are filled, making it a strong indicator of overall monetization performance.
Supply-Side Platform (SSP)
SSPs or Supply-Side Platforms are software that help publishers manage and sell digital ad inventory to advertisers in real time. This software helps publishers maximize their revenue by connecting them to different ad exchanges and DSPs to secure that the highest bidder wins each impression.
Yield optimization
Yield optimization is the practice of maximizing revenue, increasing the value of ad impressions by strategically improving ad placement, performance and targeting.
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