Words to Know If You’re in Adtech

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”.