Programmatic dictionary: basic terms and definitions


I bet that sometimes you read articles and do not know the meaning of individual terms. Specially for such cases we have created a dictionary that contains all the common terms and definitions.

If you do not know the definition of the term – just look it up in our dictionary!

1-Party Data is data of an advertiser, including information about users who interact in any way with the site (visits, registration, personal data etc.) or they are in the CRM database.

2-Party Data is indirect data obtained during previous advertising campaigns (social activity, clicks, views and reading).

3-Party Data is third-party data provided by a source to which the recipient is not related. The sources are the data exchanges and DMP, third-party sites, payment systems, e-mail distribution.

Ad Effectiveness is the impact of the advertising messages to the consumer, which is measured by the ratio of the costs for an advertising campaign and increase of sales. Financial and communication efficiency is allocated.

Ad Exchange is an advertising exchange, an intermediary in the process of digital trade in display advertising, which unites sellers and buyers of advertising resources; a technological platform for purchase/sale of advertising inventory, operating in real time and interacting with the context-media network.

Ad Network is the aggregator of traffic from site owners, which helps them to sell their inventory.

Ad Server is an advertising server, a technological service designed to host and broadcast advertising on the site, as well as count the number of impressions/clicks and create reports.

Ad Verification is an advert verification and testing system that confirms that the ads are shown where an advertiser needs and also it monitors the quality of the shows. Verification of advertising needs in order to establish its compliance with regulatory and technical standards, as well as measuring the impact on the audience.

Affinity Index is the ratio of the target group of a particular advertiser to the proportion of the target group in the whole Internet.

Agency Trading Desk (ATD) is its own development of a centralized platform of auto purchasing advertising on different advertising models belonging to an advertising agency. ATD is usually aimed at meeting the needs of specific clients of the agency.

Algorithm is a systematic trading strategy, which can be expressed by a set of rules and procedures for the consistent calculation and data processing in order to increase the efficiency of procurement advertising.

Anonymous Information is non-identifiable and generalized information about site visitors (IP address, domain, etc.).

Attributed Conversion is “pending” target actions that a user makes when he or she goes from an advertising banner to an advertiser’s site. It is not necessary for the user to make a conversion in this session. If a person needs time in order to decide, a time between a click and a conversion can take up to 90 days. During this period, the client can return to the site several times, explore the competitors’ sites and compare offers on price aggregators.

Attribution Modelling is a mathematical process of establishing a causal relationship between marketing activities and the obtained results. Attribution modelling is used to more accurately determine the weight of a particular source or channel, as well as its influence on the final result of the campaign.

Audience Buying is the catchall term for the shift from buying proxies for audiences (content, for example) to directly buying audience segments based on data collected about them. This is an update to behavioural targeting, made possible by deep pools of consumer data now available and the advent of real-time bidding on ad exchanges and other media networks.

Audience Extension is an application of behavioural targeting. Audience extension allows advertisers to target a premium site audience, which is often sold out, across other sites that belong to the same ad network. The extension process takes a known audience segment and catalogues various shared characteristics that can be used to target people who bear similarities and are therefore likely to become customers. Audience Extension techniques are also sometimes called “Lookalike Modeling”.

Audience Intelligence is the use of 1st party data and 3rd party data to determine the target audience of the advertiser.

Behavioural Data (BT, Audience Targeting) is a behavioural data related to particular users and also historical regularities of the interaction of these users with the website and the advertising content.

Bid Management is automated bid management based on a mathematical algorithm and predictive models that allow you to control the overall cost of advertising. The algorithm component of the purchase, which is responsible for bets in the auction.

Bid Rate is the ratio of the Bid Response to Bid Request.

Bid Request is the sending request by an Ad Exchange, an Ad Network and an SSP (SellSide Platform) to the auction participants. The request for rate contains information about the site, time of the show and the keys to user data (IP Address, pixel tag or a cookie, etc.).

Bid Response is the rate response sent when a Bid Request is received, which contains the banner/video ID, the bidder ID and information about the amount of the bid.

Big Data are the approaches, tools and methods of processing large amounts of unstructured and structured data.

Blacklist is the list of websites where the advertiser’s ads will not be placed (or an advertiser doesn’t want to place his ads).

Brand Safety is the protection of the brand against negative and undesirable context. Brand Safety is an important part of any RTB-processes, which ensures the reputation safety of the brand and data protection from a unfavourable information environment.

Branded Data is data that is openly collected by the supplier from major industry and thematic sites in order to identify behavioural patterns of users.

Buyer is a specialist, involved in the purchase of advertising space on various platforms. He may represent the Agency, the client or a technology company.

Campaign Dashboard is charts and graphs that give an idea about the effectiveness of the campaign at a particular time and allow to identify problems, determine the opportunities and market fluctuations and optimize advertising activities.

Campaign Optimization is changes in the structure of the advertising campaign, aimed at improving its effectiveness. The optimization process includes the effective collection of the necessary data for the analysis of marketing campaigns and making informed data-driven business decisions. Long-term optimization involves a continuous process over a long period of time in order to increase the Lifetime Value of the customer.

Click Fraud is a kind of network fraud when limitation of click on the advertisement with the help of scripts or special programs. As a rule, competitors of advertisers or dishonest site owners practice the falsification of paid clicks on the advertiser’s website.

Clickstream is the history of a user’s visit to various sites, his migration route in the network. Any user actions go in the history, from the name of pages to the time and duration of visits.

Click-through rate (CTR) is an index, which is defined as the percentage of clicks on the ad to the number of their impressions. The effectiveness of a media advertising campaign is often determined by using the CTR.

Client Focus is a priority of client’s interests, focus solely on a customer, which implies priority satisfaction of a customer’s requirements.

Completion Rate is the ratio of the number of advertising videos viewed by users until the end the end to the total number of their impressions.

Content Management System (CMS) is a software or an information system used to organize and support the process of collaborative creation, management and editing the content of the site.

Contextual Advertising/Targeting is a type of online advertising where an ad is displayed, based on the content, context webpage. Such advertising is targeting by interests and acts selectively, it is shown to the visitors which area of interest potentially intersects with the subject of the advertised product.

Contextual Data is data related to the content and context of a particular page on which the advertisement is published.

Conversion is an indicator of the effectiveness of online advertising, the level of return from the advertisement, which represents the percentage of site visitors that have performed targeted actions (made a purchase, registered, subscribed, etc.), and the total number of all visitors of the site.

Cookies are unique for each user small files in the browser that keep information about previous sessions of visiting specific sites.

Cookie Matching is the process of synchronizing identifiers of the same user between ad platforms. This is the basic process programmatic approach, without which it is impossible to target a specific user by data.

Cost Per Action (CPA) is a payment model of online advertising where the advertiser pays not for impressions or clicks, but only for targeted actions of site visitors.

Cost Per Click (CPC) is a model where an advertiser pays publishers for every click on his advertising that led the user to his site.

Cost Per Day (CPD) means that an advertiser pays for every day that their ads are on a site/page.

Cost Per Impression (CPI) refers to the cost of traditional advertising or internet marketing or email advertising campaigns, where advertisers pay each time an ad is displayed.

Cost Per Mille/Thousand Impressions (CPM) is the cost an advertiser pays for one thousand views or clicks of an advertisement.

Cost Per Order (CPO) / Cost Per Sale (CPS) is a payment model for Internet advertising, in which the advertiser pays for orders/sales made on his site by those users who were attracted by advertising. It is a kind of CPA model.

Cost Per Time refers to a form of Internet advertising, where the buyer pays for an advertisement to be placed on a website for a set amount of time.

Cross-Device Tracking is the tracking of user activity on various devices and in different applications. The analysis of received information allows to create a detailed map of user behaviour and set up further interaction with it (targeting and retargeting).

Customer relationship management (CRM) is a customer relationship management system that includes specialized software to automate customer interaction strategies, improve sales, improve service and optimize marketing by maintaining a history of relationships with a customer, information about him, improve business processes and analyse the results.

Data Management Platform (DMP) is a data management platform that is responsible for collecting, mixing and keeping data for creating audit segments.

Data Point is an elementary user action in the network, fixed in a web browser; processing the set of such actions or events (Data Set) allows building a model of user behaviour for a range of tasks: from the formation of the segments to probabilistic assessments of achievement goals (Predictive Analytics).

Data Processing / Data Mining is the processing of data, any systematic sequence of operations that are performed with or without automation tools, including recording, collection, accumulation, systematization, storage, updating, use, distribution, depersonalization and deletion.

Data Provider is a data provider company. Websites, Internet providers, plug-ins, processing systems, mobile network operators and anyone who markes out an audience using cookies or other methods of data collection can be data providers.

Data Science is a science that analyzes, processes and presents data in a digital format.

Deal ID (deal identifier) is a unique string of characters that conforms to the specific buyers or sellers. This is another programmatic mechanism that allows you to programmatically conclude deals at a fixed price and on a non-guaranteed basis. And it is one of the ways to provide software access to customers while maintaining prices and inventory management.

Demand Side Platform (DSP) is an automated technological system that interacts with SSP (Supply Side Platform), Ad Network, Ad Exchange and directly with publishers. The main goal of DSP is to buy impressions at the lowest price that most closely match the requests of advertisers. DSP usually hasn’t the interface for managing advertising and shopping, but it exists for products that perform the role of its additional part (Trading Desks, retargeting systems, etc.).

Device ID is a unique identifier of Android device.

Display Advertising is a type of advertising focuses on entertainment perception by the audience and it can include various elements (text, logo, photo, location). It is developed by using special techniques helping to attract the attention of Internet users.

Dynamic Ad Insertion is the dynamic placement of advertisements, the process by which an ad is inserted into a page in response to a user’s request.

Dynamic Pricing is a process, in which the price of a show is determined in real time and depends on the category to which the consumer belongs. Data about the device or the history of purchases and visits to the site can be used to determine the price. Dynamic Pricing is a regular price update based on the market data received.

Dynamic Retargeting is a form of retargeting the distinguishing characteristic of which is the maximum personalization of the banner creative through the use of information about user behaviour on the website, about the specific actions, interactions with forms, filters and constructors, with any elements that determinate/parameterize the user’s interest. DMP records these data, then, when retargeting, a dynamic banner is formed, assembled individually for a particular user taking into account those parameters of his interest, which he “showed” on the site.

First Look is giving the client privileged access to inventory, which increases the number of valuable buyers and stimulates the demand for inventory. Tactics of “first look”, instead of participation in the auction, gives the buyer the right to buy a show at a minimum or a fixed price. This privilege, as a rule, is granted in exchange for obligations to make a purchase. It is used in the auction model “waterfall”.

Floor CPM is a minimum CPM set by the publishers.

Fraud is a fraud in digital advertising. Winding clicks, impressions, conversions for the purpose of receiving benefits.

Frequency Cap is the frequency of ad impressions that represents the average number of ads viewed by a unique user of all covered within a single advertising campaign.

Frequency Capping is the ability to set a limit to the number of impressions of the advertising message to a unique user during a fixed period of time. This feature allows limiting the shows of single ad and a whole group.

Geo-targeting is a technique that allows displaying those advert to a user that corresponds to his geographical location. Such a regional reference provides the ability to target ads to a relevant audience, increase an ad response, as well as to create the most user-friendly content and interface.

Header Bidding is a technology that allows arranging the cross-SSP auction, i.e. send the Bid Requests simultaneously to all SSP connected to the publisher, to select the best offers among all SSP. Unlike the waterfall model, when the remaining shows after direct deals “flow down” in programmatic, header bidding equalizes auction model and direct sales.

Human Traffic is all advertising traffic consciously generated by real people. It includes all advertising traffic except the so-called IVT (invalid traffic).

Hyperlocal Targeting is a kind of targeting wherein the advertising banner is displayed to the user depending on his geographic location, and the geographical location is determined with high accuracy (usually from 25 to 4000 meters depending on platform capabilities).

IDFA is a mobile advertising identifier that allows application developers to determine who uses their app. Apple’s advertising identifier (IDFA) provides as part of iOS in its ads framework.

Impression is showing the ad to the visitor of the site; the downloading of the advertising medium, which is recorded in the server logs.

In-app Advertising is advertising in mobile applications. It includes both banners and videos.

In-Content is a placement of an advertising message in the text content of the site.

Insertion Order is an order for placement of advertising. It contains information about the planned advertising campaign: the name of the company-customer, start and end dates of the project, the individual characteristics of the promotional materials (color, size or duration), CPM (cost per thousand impressions), the total value of advertising promotion, discounts and penalties and sanctions imposed in case of default to disseminate advertising information.

In-stream Video is the display of an advertising video in the video player during playback online video.

Interactive Video is an advertisement with the possibility of interaction with it.

Interstitial Ad is a full-screen advertising, displayed on the entire screen and reacting to click.

Invalid Traffic (IVT) is a metric used by internationally recognized meters for screening low-quality, bot or abnormal traffic. IVT includes so-called non-human traffic (bots, robots, search engines, etc.), non-viewable traffic (non-viewable inventory that is shown to a real user).

Inventory is advertising inventory to promote products and services, which is a variety of ways to attract potential customers to the site. The most popular types of online inventory are search engine optimization, contextual advertising, banner or media advertising, promotion and targeted advertising in social networks or content sites, viral advertising, email marketing.

IP-address is a unique identifier of a device connected to a local network or the Internet.

Long Tail Publishers are publishers of small and medium size, such as blogs of niche commercial sites.

Look-alike Audience Modelling is a technology for offering a product or a service to users who are similar to the already existing clients of the advertiser. Look-alike modelling involves the analysis of the behaviour of websites visitors and subsequent mathematical modelling to find users with similar behavioural characteristics and involvement a new audience with high conversion capability in the campaign.

Map Reduce is a model for distributed computation over large volumes of data on a computing cluster, consisting of two phases — Map (study data) and Reduce (aggregation of calculation results).

Mid-Roll is showing an advertising video when a user watches online video, that user has requested (literally mid — “middle”, i.e. the advertising message interrupts the video, and does not appear at the end or the beginning of the video).

Mobile Advertising is media advertising, which isn’t consumed using the traditional stationary channels, but with the help of mobile devices, including smartphones and tablet computers.

Non-Human Traffic is “unreasonable traffic”, i.e. clicks and impressions created automatically, with the help of special programs or bots.

Non-Remnant Inventory is an inventory, which is sold by the publisher directly to the advertiser. Residual or non-premium inventory is usually sold by a third party.

Opt-in is opposite to the concept of opt-out. A mechanism that allows obtaining user consent to the registration of cookies and further analysis of the user’s behaviour on a website, for the purpose of further sending messages or including a user to a segment for later targeting.

Opt-out is a mechanics of failure by the user from providing access to cookies and further analysis of his behaviour. This option does not disable the showing ad in general, but it disables the display of the targeted advertising using a system in which a user refused registration of cookies.

Out-stream Video is a display of an advertising video outside the stream, in the autoplay mode, when the player sees the ad video.

Overlay Ad is a placement of an advertising format (graphic or flash-banner) on the top of the main video content requested by the user.

Pause-roll is showing an advertising video while the user pauses the viewed online video.

Performance Marketing is a comprehensive solution in the field of Internet marketing, that allows using clearly measurable and managed advertising channels for reaching specific indicators (sales, cost of attracting customers, ROMI is returning money invested in advertising). The main elements of this approach are RTB, contextual advertising, advertising on social networks, etc.

Pixels (Tags, Beacons) is a test pixel that is a transparent image or JavaScript code, which serves to transfer information about the show to the system where the count is being performed. Pixels are used to track a user’s location, as well as commit his actions, such as visiting pages, registering or converting.

Post-Click Conversion (PCC) is target actions performed by the user directly after a click during a single session.

Post-Roll is an ad video loaded for a few seconds before the end of an online-video viewed by a user.

Post-View Conversion (PVC) is a conversion after viewing an advertising message. The user saw an advertising message but did not click on it. However, after a while, he remembered the brand, returned to the site on his own and did a target action.

Predict is a set of mathematical algorithms and approaches to predict the user’s actions (click, transition, doing a target action, etc.).

Premium Inventory is a type of quality inventory, that are usually owned by well-known and authoritative publishers.

Private Ad Exchange / Marketplace is the virtual market that belongs to the seller, is controlled and managed by him. A private advertising exchange usually offers premium inventory that can not be purchased on the open market.

Programmatic Buying is a data-based process of buying and selling display advertising using algorithmically controlled automated systems.

Programmatic Direct is a way of automating of direct purchases of advertising, i.e. the seller and the buyer communicate directly. However, the acquisition of inventory occurs through programmatic.

Native Programmatic is a method that allows embedding the message of the advertiser (banner or video) directly to publisher’s content considering the semantics of sites and articles, as well as to adapt the creative to the design of websites. Unlike standard places “on the sidelines”, advertising appears in the newsline or the article.

Programmatic Premium is a system for planning, buying, delivering and optimizing exclusive advertising tools using interfaces and algorithms.

Publisher (Seller) is the owner of an advertising platform on which advertisers place their adverts.

Rate Card is a list that details the prices for various types of advertising.

Rate of return (ROI) is a financial ratio that illustrates the level of profitability or loss, considering the amount of investment; index of investment payback.

Reach is an audience coverage; a number of representatives of the target audience, at least once contacted with the advertising message during the advertising campaign.

Real-Time Bidding (RTB) is a method of automated purchase/sale of advertising displays according to the auction principle in real time.

Remnant Ad Inventory is an inventory that a publisher can not directly sell to an advertiser, and which is sold by a third party at a reduced price.

Retargeting is an advertising mechanism that allows sending advertising messages to those users who have already been familiar with the advertised product and they’ve visited the advertiser’s site.

Second Price Auction is an auction of the second price at which the highest bet is considered to be the winner, but the winner pays the “second price”, it’s the amount of the second bet and the agreed minimum extra charge.

Skip / Non-Skip is the ability/impossibility to skip an advertising video.

Smart Pixel/Smart Container is a pixel program that is embedded in the page or e-mail by an ad server to track user actions of opening and reading a letter, redirecting it, viewing a page, further navigation, etc. The pixel program is most often invisible because it is transparent and has a pixel size (1×1 pixel). It is also called “pixel online”, “one-pixel image”, “transparent gif” or “gif-indicator”. The container is different in that it once installed on the site and can encapsulate a lot of pixels that track various events, while the introduction / modification / deletion of each of the pixels does not require changes on the site. The smart container does all this work when the page is loaded by the user.

Supply Side Platform/Sell Side Platform (SSP) is a platform that sells advertising inventory or advertising positions of Internet sites. SSP aggregates offers from sites, “collects” residual traffic, and also establishes such a minimum cost at which the site is ready to realize the show. SSP conducts auction bargaining with DSP, maximally profitable selling the inventory of publisher.

Sync Rate is the indicator that demonstrates the percentage of how many users of the total number are synchronized with another platform.

Targeting is a marketing mechanism with the help of which only the target audience can be identified from the whole number of Internet users, which meets certain criteria (geographic, socio-demographic, etc.), and tell to it advertising information.

Trading Desk is a centralized platform for automated buying of advertising according to different advertising models: direct placements in the major digital channels and auction purchases in the system RTB. it is an additional thing for DSP, which is designed to configure options of advertising buying.

Trigger is the event or condition, performance or failure of which triggers a certain scenario of interaction with users. For example, we start the display advertising about ice cream when the outside temperature exceeds 25 degrees.

TrueView is a model for selling video advertising when an advertiser will pay for placement only if the visitor looks at the advertisement, if he immediately closes the video, an advertiser won’t pay.

Unique User is identified by using a cookie unique user’s browser (in the programmatic concept).

User Attribute is the part of the user information, which is included in his behavioural profile which includes demographic data (age, gender, geographic location), information about the segment or cluster (e.g., motorists) and data for retargeting (for example, a user visited the site 2 days ago).

VAST is a standard developed by the IAB. VAST-pattern is an XML document that is requested by the video player and contains information about the advertising message you want to display. The standard supports such formats as an inset, overlay and joint banner. The pattern also contains the URLs that the player should call to track the events of the preview of the commercial, then the statistics are generated by the ad server. VAST does not define all aspects of video advertising and does not specify the place and time of advertising, as it is believed that more information about the current context is available for the video player, so it should make these decisions.

Viewability is an indicator of visibility of the advertisement, monitoring the effectiveness of viewing of advertisements.

Viewable Impression is a metric that determines based on current parameters, whether the ad was seen by the user.

VPAID is a standard developed by company IAB, which ensures compatibility with videos and players. Thanks to it, a player can support appropriate advertising from any vendor. DFP supports VPAID 1.0/2.0 for Flash and VPAID 2.0 for HTML5.

Whitelist is a list of websites on which the advertiser allows to publish advertising messages.

Win Rate is the number of won impressions divided by the number of requests to which the bet was made.

Wow Roll is an advertising message, using a creative that goes beyond the video player.

Yield Optimization is optimization of advertising space filling; determine the cost of impressions for effective inventory management.

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