Financially Responsible Marketing

Part 1: Are you up to date with your online Advertising Terms?

Posted by on Nov 3, 2011

With a new wave of online advertising technologies, comes a new line of acronyms and other jargon to track, discuss and become familiar with.  CPM (Cost Per 1,000 Impressions) and CTR (Click Through Rate) are terms of the past – take a look at some of the new terminology to ensure you’re up to date with your acronyms and online jargon.

  • RTB:  Real Time Bidding
    • In a Real Time Bidding system each ad impression is sold off to the highest bidder in real-time, as someone’s browser loads an ad unit.  This allows higher ad rates for publishers, and more targeted ad purchasing for buyers.
  • DSP:  Demand Side Platforms
    • In every market there is supply and demand.  The ‘supply’ in online advertising is website inventory and ‘demand’ is from advertisers looking to place their ads.  A ‘demand-side’ platform is a dashboard of sorts which uses targeting, campaign management tools and reporting to facilitate the ad buying metrics.
  • SSP:  Supply Side Platforms
    • A supply side platform is a tool used by web publishers to analyze demand side platforms, real time bidding and other advertising metric systems to ensure the value on each ad impression is calculated, and collected by publishers
  • Agency Trading Desk
    • As automation takes hold of more advertising placement, larger agency holding companies have set up ‘trading desk’ corporations to move their clients’ money around.  The skeptics view this as allowing agencies to ‘double dip’ on revenue – charging for agency services and trading desk services.  The agencies view it as efficiency and thus providing cost savings.
  • Private Exchange
    • Just as it sounds, a private exchange allows a publisher (or group of publishers) to sell into real time bidding or agency trade desk systems by invitation only.  The idea around exclusivity leads to tiered marketing campaigns and of course, increases the value of each advertising impression

As you familiarize yourself and your team with the newest online advertising jargon, revisit our blog next week for Part 2;  to continue to add to your ever-growing list of acronyms.