Improving Engagement and Performance in Digital Advertising

Improving Engagement and Performance in Digital Advertising

          
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Improving Engagement and Performance in Digital Advertising

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    Appendix: A Digital-Advertising Lexicon

    Digital advertising is a technical discipline, and like other such specialized fields, it has spawned its own terminology. Here are definitions of some of the most commonly used terms and acronyms, including those used in this report.

    Bounce rate: The percentage of people who view only one page on a website

    Behavioral analytics: The analysis of user behavior on the advertiser’s website to identify groups of users with demonstrated behaviors that can be used for targeting

    Behavioral targeting: Displaying ads to individual consumers based on their online behavior—for example, websites they have visited, search ads they have clicked on, and videos they have viewed

    Click-through rate: The number of people who click on an ad divided by the number of times the ad is shown

    Cost per action: The cost of a campaign, or campaign technique, divided by the number of conversions (purchases or other pre-specified action) that the campaign or technique generates

    Cost per click: The cost of a campaign, or campaign technique, divided by the number of clicks on the campaign ad

    Cost per view-through: The cost of a campaign, or campaign technique, divided by the number of visits to the advertiser’s website made independently by people after seeing an ad

    Display remarketing from search ads: Serving display ads to users who have clicked on a paid search link purchased by the advertiser

    Programmatic buying: The automated buying and selling of digital advertising

    Real-time-bidding: The auction-based buying and selling of digital-advertising inventory, in real time, and on a per-impression basis

    Reservation buying: An ad placement negotiated directly with the publisher or website owner

    Site-based targeting: Displaying ads based on the content of the website

    Third-party look-alikes: Those consumers, identified using third-party data, who have similar characteristics as an advertiser’s first-party target audience

    View-through rate: The number of people who independently navigate to the advertiser’s website after seeing an ad divided by the number of times an ad is shown

    Video remarketing: Serving display ads to users who have interacted with the advertiser’s video channel