RTB (Real-Time Bidding) is a technology for purchasing display advertising through programmable online auctions. RTB focuses directly on impressions to target visitors, rather than planning reserves of advertising space in certain applications. Each impression is redeemed in a fraction of a second — during the opening of the application or when moving to the next level (if the ad is shown in the game application) — the RTB system instantly conducts an auction. As a result, the best offer from advertisers appears before the eyes of the user who is most interested in it.
DSP (Demand-Side Platform) is software used by advertisers to buy mobile, search, and video ads from a marketplace on which publishers list advertising inventory. These platforms allow for the management of advertising across many real-time bidding networks, as opposed to just one, like Google Ads. Together with supply-side platforms, DSPs enable programmatic advertising.
SSP (supply-side platform) is a software system that allows publishers to offer their available inventory to ad exchanges and demand-side platforms (DSP)s. In this context, the supply side refers to the supply of advertising space, which is what the publisher is offering. The publisher is typically a website owner but could also be an app developer.
SSPs and DSPs are two entities involved in programmatic advertising, which automates processes around the purchase and placement of ads through real-time bidding (RTB). Based on criteria established by advertisers and publishers, such as channels, audience characteristics, and purchase options, RTB makes it possible for impressions to be offered and bid on and the winning ad placed, all in the time it takes for a user-requested page to load.
Ad Exchange is an exchange of advertising places. A platform that provides bidding with advertising impressions: puts up for sale impressions to visitors of publishers' websites and advertising networks, accepts bids from the DSP and announces the winner. The advertising exchange works with the RTB ecosystem and is part of the SSP technology stack.
Ad Network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with the advertiser's demand.
DMP (Data Management Platform) - A system for managing data used by agencies, advertisers, or publishers. Most first-party data is managed and integrated with third-party data to combine user information and activities as well as to optimize media purchasing.
Ad Server - A platform that distributes ads to end devices (ie. your computer or mobile phone) and captures performance metrics.
Ad Inventory - Ad inventory is the number of ad spaces a publisher has available on their app.
API - Application Programming Interface - APIs enable connection to external applications and allow to transfer of data from multiple platforms to a unified dashboard.
CPI - Cost Per Install. Formula:
CPI = Media Cost/Total number of Installs.
CPA - Cost Per Action. Formula:
CPA = Media Cost/Total number of actions.
In terms of mobile programmatic action is an exact in-app event as registration, purchase, First Time Deposit or so.
CPM (Cost Per Mille) - Cost per 1000 impressions. Formula:
CPM = Media Cost/Total number of impressions*1000.
CPC - Cost Per Click. Formula:
Media Cost/Total number of clicks.
IPM (Installs Per Mille) - Installs per 1000 impressions. Formula:
Total number of installs/Total number of impressions.
CTR - Click Through Rate. Formula:
Total number of clicks/Total number of impressions*100%.
CTI - Click To Install Rate. Formula:
Total number of installs/Total number of clicks.
CTIT - Click To Install Time. The time frame between the user's click on the ad and install + app open.
Bundle ID - the id of the app on AppStore or Google Play Store. Examples: id1369521645, com.fugo.wow.
Inclusion list - the list of apps, where the ads should be shown and nowhere else.
Exclusion list - the list of apps, where ads shouldn't be shown, but they can be shown anywhere else.
Bid request - a bid request occurs in real-time bidding environments. An SSP platform will send a signal out to a DSP indicating that they have an impression for sale, along with the details about that impression.
Bid response - A bid response occurs in real-time bidding environments. A DSP platform will respond to a bid request signal sent out by an SSP with a price, and possibly creative specs.
Bid - CPM or CPC price which is set on a specific campaign.
CT installs - installs that were received when the user made the install and opened the applications after clicking on the ad (the standard attribution window period for clicks is 7 days).
VT installs - installs that were received when the user made the install and opened the applications after viewing the ad (the standard attribution window period for views is 24 hours).
Reach - metric that reflects the number of unique users who have seen the ad in the app.
Revenue - income statements show all the money your company brought in during the accounting period.
ROAS (return on advertising spend) - a calculation that measures the cost-effectiveness of advertising efforts. It can help businesses and other entities figure out if their advertising strategy is worth it or not. Formula:
Revenue/Media Cost*100%.
MMP Events - events from Mobile Measurement Partner. Includes installs, registrations, and any other events the user can do in the app (like KYC complete, First Deposit Success, etc.).
First-Price Auction - A first-price programmatic auction happens in real-time bidding when the highest bid for an ad slot wins, regardless of the amount submitted by lower bidders.
First-Party Data - First-party data is gathered by an app developer and reflects its visitors’ online behavior. It is the most valuable data as it is proprietary to the publisher or application developer and provides precise and accurate data about its audience.
Frequency Cap - A frequency cap is a method to control how many times an ad will be served to a specific user. It is used to avoid targeted audiences becoming irritated with the ad.
Price Floor (Bid floor) - A price floor is set at a minimum cost in a second-price auction. It allows publishers to get their full revenue potential.
Second-Party Data - Second-party data is also data collected about online users, only it is provided by an external partner and compliments the “proprietary” data. It is usually acquired through partnerships but can also be bought.
Second-Price Auction - second-price auction happens in real-time bidding when the auction is cleared at the second-highest price plus a small fee, usually one cent.
Third-Party Data - Third-party data can be bought on a much larger scale. Some companies specialize in data buying and will buy it from a broad range of publishers, allowing companies to get a better overview of their market. The counterpart is that competition also has access to this data.