The adtech and martech industries are changing by the day. From new regulations to current events, the industry has to respond quickly in order to stay relevant -- meaning it can be tough to stay up-to-date on all the current vocabulary. As one of the leading cross-device companies and the first to provide a device graph, we are here to help.
To start, let’s go back to the beginning and take a look at metrics. For any campaign, metrics are very important on how you gauge success - and there are plenty of ways to do so. If you’re just getting started in adtech, here are some words you need to know to understand metrics:
Brand Metrics: Used to measure the effectiveness of brand performance including brand lift, affinity and favorability
Conversion: Occurs when a user clicks an advertisement that leads directly to a purchase, sign-up, registration, lead, or view of a key page.
Cost-Per-Acquisition / Cost-Per-Action (CPA): Cost of advertising based on a visitor taking a defined action (sales transaction, customer acquisition or a click) in response to an ad
Cost-Per-Click (CPC): The cost of advertising based on the number of clicks received
Cost-Per-Customer (CPC): The cost an advertiser pays to acquire a customer
Cost-Per-Lead (CPL): The cost of advertising based on the number of leads received
Cost-Per-Thousand (CPM): Refers to a media term describing the cost of 1,000 impressions
Click-Through Rate (CTR): Clicks created per impression
Engagement: A general term used to classify interaction a consumer has with brand content, whether it be in an ad, on a brand’s site, or via a brand’s social media profile page
First-Click Attribution: Purchase attributed to the first click the consumer makes toward purchasing an item
Impressions: The number of times an ad has been served
Interaction Rate: The proportion of users who interact with an ad or application. Interaction right is highly dependent on where the ad or application is placed on screen
Key Performance Indicator (KPI): A business metric used to evaluate factors that are crucial to the success of an organization; demonstrates how effectively a company is achieving key business objectives; A set of quantifiable values that a company or industry uses to gauge or measure performance
Last-Click Attribution: Purchase attributed to the last click the consumer makes toward purchasing an item
Return on Investment (ROI): A ratio of revenue to cost across industries for ads - not including retargeted ads
vCPM: Cost per thousand viewable/visible ads served
Viewability: The duration of time an ad plays while partially in view (minimal 50% of the ad on the page)
Video Completion Rate: Measurement of when a video ad runs all the way through to the end
Interested in learning more about martech and adtech? Stay tuned for our next “Words to Know”.