Advertising Terminology: Ad Terms Part 1
specifications for online ad networks, adserver, ad management
and ad server software and services. Ad definitions and ad terms do not
necessarily represent the common or complete meaning of the
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Above the Fold: In
reference to ad placement in traditional media, such as
newspapers, this defines the top half of a page. On the web,
this portion of the page is viewed without scrolling.
(Advertisement): Digital creative that is typically
interactive. Banners, buttons, interstitials and key words are
all examples of online advertisements. The digital creative
can be text, static graphic, animated graphic, video, audio or
Software: the software technology and service
that places advertisements on websites and other media.
Ad management technology companies provide software to
web sites and advertisers to serve ads, count them, choose the
ads that will make the website or advertiser most money, and
monitor progress of different advertising campaigns. Ad Server
Solutions sells ad management
Historically, an organization charged with the representation
of advertising space for a group of Webster for the purpose of
maximizing revenue and minimizing administrative costs through
aggregation. The role of an Internet advertising network is to
transact, serve, track and report the distribution of creative
from advertisers to publishers using an efficient, interactive
marketplace. Ad Server Solutions sells ad network software.
Ad Product - A
specific advertising opportunity on a website. Example:
banners, jump pages, pop-ups, splash pages and tickers.
Different ads and different ad sources are often rotated in
the same space on a web page. Ad rotation can be static (one
ad per page view) or dynamic (more than one ad per page view
cycled based on elapsed display time). This is usually done
automatically by software on the web site such as Ad Server
Solutions. This function is related to, but different from
ad serving provided by a network.
Ad server: Name
for the organization, hardware, and software that deliver
advertising creative to the userís browser. The ad server
typically is responsible for selecting the appropriate ad to
serve by frequency control and targeting. The ad server also
performs a variety of other administrative tasks including
real time reporting of impressions, clicks, uniques, and more.
Ad Space: The
space on a web page reserved to display advertising.
Audit Bureau of Verification Services
(ABVS): The interactive auditing unit of the Audit Bureau
of Circulations (ABC).
Ad View: See Impression.
individual or entity purchasing online advertising space
including agency media buyers, OEM media buyers, and sole
Marketing: Marketing efforts aimed at consumers on the
basis of established buying patterns.
organization beholden with the responsibility to design,
produce and manage the advertising for its customers. Agencies
that handle digital creative and online campaigns are typical
called interactive agencies. Many agencies handle both
interactive and traditional media.
term for a web site that drives traffic to another web site in
exchange for a percent of sales from users driven to the site.
The person responsible for running the merchant's affiliate
program. This includes recruiting affiliates, providing
incentive programs, designing banners and media for
affiliates, reporting sales and paying affiliates.
Marketing: is a marketing practice in which a
business rewards one or more affiliates for each visitor or
customer brought about by the affiliate's own marketing
efforts. Examples include rewards sites, where users are
rewarded with cash or gifts, for the completion of an offer,
and the referral of others to the site. The industry has four
core players: the merchant (also known as 'retailer' or
'brand'), the network, the publisher (also known as 'the
affiliate'), and the customer.
Network: acts as an intermediary between
publishers (affiliates)and merchant affiliate programs. It
allows website publishers to more easily find and participate
in affiliate programs which are suitable for their website
(and thus generate income from those programs), and allows
websites offering affiliate programs (typically online
merchants) to reach a larger audience by promoting their
affiliate programs to all of the publishers participating in
the affiliate network. Ad Server Solutions sells
affiliate network software.
Affiliate Program: An automated marketing program where a
Web advertiser or merchant
recruits webmasters to place the
ads or text
ads on their own Web site. Webmasters
will receive a referral fee or commission from sales when the
customer has clicked the affiliate link to get to the
merchant's Web site Web site to perform the desired action,
usually make a purchase or fill out a contact form. The most
common types of affiliate programs include pay per click, pay
per lead and pay per
Software: Software running and managing an affiliate
program. Ad Server Solutions sells Affiliate
Software. This includes signing up affiliates, managing
links, tracking impressions, clicks, leads, sales, etc.
And finally paying affiliates.
Tracking: The process of tracking a link uniquely by
an affiliate using an affiliate link.
Alias: A URL that
points to another web site. Many web sites use aliases to
Text that appears while a banner is loading or when a
cursor moves over a banner.
Animated GIF - The combination of
multiple GIF images in one file to create animation. The
multiple images, displayed one after another, give the
appearance of movement. Studies show that animated banners are
more effective than static banners. They generate higher ad
awareness and recall, and click-throughs.
Provider (ASP): Entities that manage and distribute
services and solutions to customers across a wide area network
from a central data center. Internet advertising networks are
sometimes referred to as ASPs. We provide a Remotely Hosted
Solutions at Ad
Applet: A small
application served along with or instead of an image file for
the purpose of executing a specific animation, visual or audio
sequence. Some rich
media creatives are served using a Java applet. Applets
are typically intended to provide an enhanced web user
experience, comparable to a plug-in.
throughput capacity. A measure of how much digital signal or
information can be passed through a device or interconnect.
Bandwidth is usually measured in bits per second. A 2400 baud
modem can handle 2.4 kilobits per second. A T3 industrial
interconnect can handle 45 megabits per second. A 100 base-T
ethernet interconnect can handle 100 mega-bits-per-second.
Bandwidth is analogous to the size of a water pipe.
Banner: An interactive online
advertisement in the form of a graphic image that typically
runs across the top or bottom of a web page, or is positioned
in a margin or other space reserved for ads. Banner ads are
historically GIF images. Many ads are animated GIFs since
animation has been shown to be more effective. The standard
banner is 468 pixels wide by 60 pixels high. The standard
banner is still the mainstay of online advertising, but is
quickly giving up ground to newer, potentially more effective
forms of online advertising, such as email and interstitials.
Over exposure of an advertising creative that contributes to a
drop in click-through rates. Frequency control reduces burnout
for a particular creative or campaign.
Beyond The Banner:
online advertising not involving standard GIF and JPEG banner
Booked Space: web
site advertising space that is already sold or otherwise
unavailable to receive new campaign commitments.
traditional advertising method used to elicit a latent
response from a target based on cumulative impressions and
application used to access files from the Internet. Such
browsers include Internet Explorer, Netscape Navigator, Opera
Business to Business
(B2B): Businesses doing business with other businesses.
The term is most commonly used in connection with e-commerce
and advertising, when you are targeting businesses as opposed
Business to Business (B2B)
Targeting: The targeting of online advertising to web
sites that cater to business users, or targeting the business
interactive online advertisement in the form of a small
graphic image that typically resides in the margin of a web
page. Buttons are typically 88 x 31 pixels. The same button is
often recurring for every page view on a particular site.
Affiliate programs and sponsorships often use buttons to drive
Cache: To store pages, images, or other
items, on a local server or user's computer to speed the rate
at which web pages load. Ads, like other images, are cached
unless some sort of cache-busting technique is used. When ads
are cached, they will be served but will not be counted by an
ad server. This can lead ad servers to under count the number
of times a page is viewed, and this can in turn skew
Cache Busting: The
process of blocking the caching of certain files to guarantee
new delivery from the external server for each page view.
Cache busting is necessary for the successful execution on
contracted agreement between an advertiser or advertising
agency and either a publisher or a representative of a
publisher. The campaign is specific to the creative
to be published and the issue, or duration of the publication.
Online advertising campaigns are defined by a number of
variables, including the digital creative, the duration or
flight dates, the pricing program, the publishers to be used
and any user targeting applied.
Targeting: The controlled delivery of creative to
categorized web sites. Categories focus a campaign to those
users most likely to be interested in the products or services
being offered, thus increasing the effectiveness of the
Click, Click-Thru or
Click-Through: The activation of a hyperlink using a mouse
or other input device. The click-through is essential to the
interactivity of online advertising.
Click-Through Rate (or Ratio) (CTR): The rate
of activated ads to total ads displayed. A typical CTR is 0.5%
(1 in 200). Also called Click-Through Percent (CTP). The
click-through rate of an advertising creative is one measure
of its effectiveness.
When users click on a banner or text link, the click-through
is the new destination to which they are directed.
The process of counting and auditing the clicks for a
campaign. Click tracking can be done by a different entity
than that which serves the creative.
percentage of the advertising fee paid to the Publisher for
hosting the creative on their web site Typical commissions
range from 50 to 75 percent.
Interface (CGI): Interface creation scripting programs
that create web pages in real-time based on dynamic end user
Cookie: A cookie
is a file used to record and store a variety of information on
a user's computer. Cookies are placed by an external source
during a certain event, such as the display of an ad. A cookie
can be read only by the server in the domain that stored it.
Cookies placed on user's computers as part of the ad serving
process by ad server solutions do not collect, store or
transmit personally identifiable information. Users can accept
or deny cookies, by changing a setting in their browser
preferences. The denial of cookies severely limits the
customization and interactivity of a user's online
per 1,000 Impressions (CPM): An advertising campaign
pricing model based on an estimate of the number of
impressions of a particular creative in a particular media at
a particular time (TV) or issue (printed media). The vast
majority of online banner advertising is priced using the CPM
model. The "M" is the Roman numeral for 1,000. The cost is
aggregated per thousand for convenience; the cost for
individual impressions would be very small. CPM is strongly
associated with the "branding" school of marketing.
Cost per Action or
Acquisition (CPA): An advertising campaign pricing model
based on paying for direct results. The direct correlation
between the action taken and the payment for the advertising
that led to the action is desirable to advertisers. This model
takes many forms (leads, sales, etc.) and is increasing in
popularity online due to the ease of implementation and
accounting compared to traditional media. CPA is strongly
associated with the "direct response" school of marketing.
Also called Cost per Transaction
per Click-through (CPC): An advertising campaign pricing
model base on paying only for those ads that experience a
click-through CPC can be considered a measure of direct
response, but is not a measure of true action taken by a user.
per Lead (CPL): A CPA pricing method that typically pays a
fixed fee for the acquisition of a customer lead, such as a
filled out form or an opt-in email address.
per Sale (CPS): A CPA pricing method that typically pays a
transaction percentage for the acquisition of a customer that
makes a purchase.
Creative: The materials used in
advertising to convey a message. Digital creative can be text,
static graphic, animated graphic, video, audio or other. See
Cost: The cost associated with acquiring a new
The presentation and delivery of publisher web site and
advertiser campaign data. Data reporting is typically a
combination of tabular and graphic presentation.
Statistical data that describes the makeup of a given user
base, and includes information such as age range, gender,
education levels, and average household income. Demographic
data is one of the tools used to match ad space with an
Advertising creative that is in digital format. Digital
creative is easily stored, retrieved and delivered online.
Common forms of digital creative include hypertext, HTML
files, GIF image files, MPEG video files and AVI audio files.
Direct Response: A
traditional advertising method used to elicit a direct
response from a target by providing immediate access to the
means to make a purchase. The interactivity of the Internet is
ideal for the implementation of direct response advertising
Even Delivery: The uniform
distribution of advertising creative across designated web
sites and over the flight of the campaign given targeting
parameters, if any. Reputable ad serving systems like Ad Server
Solutions have a variety of methods to maximize even
Exclusive: A contract that
forces a Publisher to sell all specified inventory through a
certain channel for a specified period of time. Advertisers
can also be bound to purchase media only through a certain
channel for a specified period of time.
Exit Transfer: The
automatic launch of a browser window containing the
advertiser's content triggered by the visitor exiting a
particular web page or web site.
Exposures: Similar to Impressions,
except it refers directly to the accessing of the Ad Banner.
The time period, and associated start and end dates, over
which an advertising campaign runs.
rate a particular user is exposed to a particular creative or
a particular campaign during a single session or period of
time. Frequency capping is essential to the success of
online advertising campaigns to maximize creative
Format (GIF): A common graphics format that can be
displayed on almost all web browsers. GIFs typically display
in 256 colors and have built-in compression. Static or
animated GIF images are the most common form of banner
Serving of ads to a particular geographical area or
population segment. Geo-Targetiing.