Wednesday, September 28, 2016

Programmatic Marketing 101

There are a lot of buzzwords and abbreviations related to programmatic marketing. Today's blog is a primer of 20 commonly used words in the field.

Ad Exchange - System that facilitates the buying and seller between advertisers and publishers. Connects players in real time to conduct bidding of ad space.

Ad Impression - Also called an ad view, measurement of how many times the ad has been seen.

Ad Inventory - Space/number of ads that a publisher has available for purchase.

Artificial Intelligence (AI) - Ability of a computer to imitate human intelligence and behavior.

Behavioral Targeting - With the purpose of increasing ad effectiveness, behavioral targeting selects specific ads to show specific people based on their actions and interactions on the web.

Big Data - Data collection that is so large that traditional database tools cannot handle them. Big data is analyzed to uncover patterns, trends, and correlations of human behavior.

Conversion Rate - Conversion is the completion of the desired action of the ad campaign. This could be a page view, sign-up, purchase, or registration. The conversion rate is calculated by dividing the number of conversions by the number of click-throughs. For example, 5 conversions from 100 click-throughs would equal .05 or 5% conversion rate.

Cookie - Text string sent out by the internet server to a browser which is then returned to the server each time the browser accesses the server. Cookies provide information about user behavior, such as where user moves within a site.

Data Management Platform (DMP) - Data warehouse that gathers information from various sources, sorts it, analyzes it, indexes it, houses it, and then outputs data in a way that is meaningful to marketers and advertisers. More than a database, a DMP can help businesses define audiences and determine when and where to target what message on what device.

Demand-side platform (DSP) - System used to purchase advertising using automation. DSPs decide where it makes the most sense to buy advertising.

eCPM - Abbreviation for "effective cost per mille" (meaning effective cost per thousand). Calculated by dividing the number of ad revenue generated by the number of impressions in thousands and used to measure the effectiveness of an ad campaign.

Geotargeting - Delivering specific content to a prospect or customer based on their geographical location.

Open Exchange - Real time auction that any buyer or seller can participate in.

Private Marketplace (PMP) - Also called Private Exchange. Real time auction by invitation only. A publisher or brand will invite advertisers to bid on its inventory.

Programmatic Advertising/Marketing - Ability to reach customers and prospects at the right time, in the right place, with the right message, and on the right device by using data automation.

Programmatic Direct - Subcategories include programmatic guaranteed, programmatic reserved, and programmatic premium. Transactions that are negotiated between advertiser and publisher regarding a fixed inventory and pricing, but done automatically. Eliminates the need for order forms and RFPs.

Publisher - Website that sells ad space.

Real Time Bidding (RTB) - Buying and selling of advertising via real-time automated auctions. Almost an instantaneous process, winning bidder's ad appears on website as soon as it is loaded.

Retargeting - Gathering data on a customer and then serving them a specific ad on another website based on their previous online behavior. Previous interactions on stored in Web browser cookies.

Supply-Side Platform (SSP) - System used by publishers to sell advertising using automation. Allows publishers to maximize inventory prices in ad exchanges, demand-side platforms, and ad networks.

TechniGrafic Solutions, Inc.
Internet Marketing and Lead Generation
www.techsolinc.com