The digital advertising landscape is vast and constantly evolving, filled with specialized terms that can be overwhelming, especially for newcomers. To help you navigate this world with confidence, we’ve compiled a comprehensive glossary of key digital advertising terms. Whether you’re a beginner or a seasoned marketer, this resource will be your go-to guide for understanding the essential vocabulary of online marketing.
A-B Testing
A method used to compare two versions of an ad, webpage, or email to see which performs better. By testing variations (A and B), advertisers can optimize their content for improved engagement and conversions.
Ad Exchange
A digital marketplace where advertisers and publishers buy and sell ad space in real time. Ad exchanges enable programmatic advertising by automating transactions.
Audience Targeting
The process of defining a specific group of people who are most likely to be interested in your product or service. Targeting criteria often include demographics, interests, and online behavior.
Bounce Rate
The percentage of visitors who leave a website after viewing only one page. A high bounce rate often indicates that visitors aren’t finding the content relevant or engaging.
Click-Through Rate (CTR)
The percentage of people who click on an ad or link out of the total who view it. CTR is an important metric for gauging ad engagement.
Conversion Rate
The percentage of users who complete a desired action, like making a purchase or signing up for a newsletter, out of the total who interacted with an ad or landing page.
Cost Per Click (CPC)
An advertising pricing model where the advertiser pays each time a user clicks on their ad. CPC is commonly used in search advertising, like Google Ads.
Cost Per Mille (CPM)
A pricing model where advertisers pay per 1,000 impressions (views) of their ad. CPM is popular in display advertising and is ideal for raising brand awareness.
Display Ads
Banner or image-based ads shown on websites, often in designated areas such as headers, sidebars, or footers. Display ads can be static or animated.
Impression
Each time an ad is displayed to a user, it counts as an impression. Impressions are a basic measure of ad exposure.
Landing Page
A standalone webpage created specifically for a marketing or advertising campaign, designed to encourage visitors to take a specific action, such as signing up or making a purchase.
Lookalike Audience
An audience that resembles an advertiser’s existing customers or followers. Lookalike audiences are often created using data from social media platforms.
Pay-Per-Click (PPC)
An online advertising model where advertisers pay a fee each time their ad is clicked. PPC is commonly associated with search engines but is also used in social media advertising.
Programmatic Advertising
The automated buying and selling of online advertising using software and algorithms. Programmatic advertising optimizes ad placements in real time for better performance.
Retargeting
A tactic that displays ads to users who have previously visited a website or interacted with an app but did not complete a desired action, encouraging them to return and convert.
Search Engine Optimization (SEO)
The process of optimizing a website’s content and structure to improve its visibility in organic (non-paid) search engine results.
Viewability
A measure of whether an ad was actually seen by users. Viewability standards ensure that ads have a chance to be seen and engaged with.
White Label
A product or service produced by one company that other companies can rebrand and market as their own.
Yield Management
The process of optimizing ad placements to maximize revenue. Yield management is commonly used by publishers to ensure they’re getting the best return on ad inventory.
