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Campaign Setup : Glossary of terms

  1. : Frequency in advertising refers to the number of times a user is exposed to a specific ad within a given time period. Frequency capping, a related term, is a feature that allows advertisers to limit the number of times an ad is shown to a user, preventing overexposure and potential ad fatigue.
  2. : Viewability Rate is a metric used in digital advertising to measure the percentage of ads that were actually viewable by users. According to the Interactive Advertising Bureau (IAB), a display ad is considered viewable if at least 50% of its pixels are in view for a minimum of one second. For , 50% of the pixels must be in view for a minimum of two seconds.
  3. (Cost Per Action): CPA is a pricing model where advertisers are charged based on a specified action. This could be a purchase, form submission, or any other action that the defines as valuable. It allows advertisers to only pay when their ad leads to specified action, reducing wasted spend.
  4. (Cost Per Click): CPC is a pricing model where advertisers are charged for each click their ad receives. It's often used in paid search marketing and social media advertising. This model allows advertisers to pay only when a user interacts with their ad by clicking on it.
  5. : In digital advertising, reach refers to the total number of unique users who have seen an ad. When selecting “Reach” as the objective, the algorithm prioritizes delivering the full against the set targeting, aiming to reach as many unique users as possible within those parameters.
  6. CPC (Cost Per Click) Optimization: When selecting CPC as the optimization type, the goal of the campaign shifts to maximizing the number of clicks received on the advertisements. By setting a specific CPC goal, say €1, you're instructing the algorithm to optimize the campaign's bidding and selection of ad placements such that, on average, each click costs no more than €1. The algorithm achieves this by learning over time which types of and what bid levels are likely to result in clicks within this cost parameter. It's a dynamic process with the algorithm continuously refining its understanding of where and when to serve ads to achieve the best possible click rates within the specified CPC.
  7. CPA (Cost Per Action) Optimization: When you choose CPA as your optimization type, the objective of the campaign becomes driving specified user actions, such as making a purchase, filling out a form, or signing up for a newsletter. Suppose you set a CPA goal of €1. In this case, the algorithm's aim is to optimize the campaign so that, on average, each user action costs no more than €1. This is achieved by intelligently selecting ad placements and adjusting bids based on the likelihood of a user completing the desired action. The algorithm leverages data from past performances and real-time user interactions to identify the best opportunities to serve ads and hit the desired CPA goal.
  8. : This term refers to the specific CPA or CPC value that you set as your campaign's target when optimizing. The algorithm uses this goal value as a guide to steer the campaign in the desired direction.
    • For instance, if you select CPC as your optimization type and set a goal value of €1, the algorithm will optimize the campaign to aim for an average cost per click of €1. It will constantly learn from real-time data, adjusting its bidding and ad placement strategies to achieve this goal.
    • Similarly, if you choose CPA as your optimization type and set a goal value, the algorithm will seek to achieve an average cost per action equal to that goal value. It uses historical performance data and real-time interactions to serve your ads in a manner that is most likely to yield the desired user action at the set CPA.
    • In both scenarios, the goal value provides a tangible target for the algorithm to strive for, ensuring your campaign stays focused and efficient in achieving your objectives.
  9. (Cost Per Thousand Impressions): CPM is a pricing model where advertisers are charged for every thousand impressions (views) of their ad. This model is often used in display advertising and is beneficial when the goal is to increase brand awareness.
  10. Max Average CPM: Max Average CPM is a bidding strategy in programmatic advertising where advertisers set a maximum average cost they're willing to pay for a thousand impressions. This allows for fluctuations in the cost of impressions and adapts in real time based on the value of an impression which is impacted by factors such as time of day, domain, and targeting.
  11. Cost-per-view (CPCV): is a metric used to assess the effectiveness of content in marketing. It calculates the cost an advertiser incurs each time their video is viewed completely. A lower CPCV is desirable, as it indicates efficient spending and successful video ad performance. Most CPCV prices range from $0.10 to $0.30, with a lower value being more favorable for advertisers.
  12. Geo-targeting: Geo-targeting in advertising refers to the practice of delivering different content or advertisements to a user based on their geographic location. This could be as broad as a country or as specific as a neighborhood. Geo-targeting works by using a user's IP address to determine their location. More advanced methods may use GPS data from a user's mobile device, but this usually requires the user's consent.

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