Digital Advertising Acronyms
Digital Advertising Acronyms—What Do They Mean?
In the digital advertising world, acronyms can seem overwhelming: DSP, DMP, CPM, CPA, CTR. What do they all mean? Luckily, The Campaign Workshop is here to help you understand all the digital advertising acronyms you need.
DSP: Demand-side platform A demand-side platform is software that allows the purchase of digital advertising inventory across multiple exchanges using real-time bidding (RTB). This helps automate the buying process so you don’t have to go through the traditional method of contacting different publishers. It also places the focus on targeting the right people, wherever they are online.
DMP: Data management platform A data management platform is exactly as it sounds—a tool to manage data used in digital advertising. A DMP will store your data and sort it in a way that is useful for your targeting needs. A DMP can work with a DSP to use your data to target your buying.
CPM: Cost per mille (cost per thousand impression) CPM refers to the pricing structure many vendors use to sell digital media. Under this pricing structure, advertisers pay each time an ad is displayed (impression). Since many ad campaigns can include multi-million impressions, the pricing used is calculated by the thousand-impression increment to simplify it.
CPA: Cost per acquisition Cost per acquisition is another pricing structure where you pay per name acquired. Usually this is used in an email acquisition campaign when you are looking to increase the number of supporters on your list. Using a CPA pricing structure can be extremely beneficial down the line because you can use it to see what the ROI (return on investment) has been for your supporters.
CTR: Click through rate Click through rate is a metric used to show how many clicks your digital ads garnered. It is calculated by taking the number of clicks and dividing them by the number of impressions. This shows the rate at which people who were served ads were clicking on them. Depending on the goals of your campaign, this metric can be extremely useful or just a good piece of information to have.
tl;dr: too long; didn’t read In case you made it this far, here’s a bonus acronym for you!
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