A handy glossary of commonly used industry terms.
% ACV Distribution
Measures the breadth of distribution of a product. Kind of like % of stores selling, but bigger stores get heavier weight. A point of distribution in the Total US is worth more than a point of distiribution in Chicago, which is worth more than a point of distribution in Des Moines. Keep in mind that just because an item is authorized does not mean it is in distribution. The item must scan at least once during the period to be counted as in distribution. NOTE: %ACV Distribution is NOT additive across products, markets or periods! See All Commodity Volume (ACV) definition for more details about that component of this measure.
% ACV with Merchandising
Measures the breadth of merchandising support. Can be used with any of the Merchandising Conditions (Price Reduction Only, Feature Only, Display Only, or Feature & Display).
Amount that the promoted price drops below the regular price, expressed as a percentage. Calculated as (Base Price – Promoted Price)/Base Price. A higher number means a deeper discount. A deeper discount for the same tactic almost always results in a higher lift. % Discount is available by merchandising tactic on custom databases.
% Subsidized Volume
Portion sold on promotion that would have been sold anyway. Calculated as (Promoted Sales – Incremental Sales) / Promoted Sales. Lower is better. The Efficiency measure expresses the same concept from another angle.
1st Party Data
Information compiled about visitors’ relationships with a particular site, which can be shared explicitly (i.e., signing up for an email list, filling out a form or survey, etc.) or implicitly (i.e., information about past web surfing habits, site visits, etc.).
2nd Party Data
Provided by advertisers or digital media companies, 2nd party data refers to the information previously aggregated (either by permission or anonymously) from both online and offline sources. This data is then segmented into targetable audience groups based on certain characteristics.
3rd Party Data
Highly descriptive data that can be collected by an outside vendor to create broad sets of segments. Ultimately, 1st party data can be enriched by 2nd party data from advertisers, which in turn can be even more enriched by data aggregators or data management platforms.
A method used to compare different versions of digital ads or website landing pages in order to determine which one performs better. A typical A/B test for ads involves running the two ads simultaneously and then measuring which version gets a better response from the audience. When running an A/B test, only one element of the ads should be changed at a time. This is because the goal of these tests is to determine which variables generate the best responses from the audience. Once a winner is selected, it is then used as the next control and compared with another version to isolate and identify, the ad element that causes the audience to respond favorably to the ad.
Australian Bureau of Statistics. Australian government’s official statistical organisation responsible for conducting the census.
Absolute Change (Abs Chg)
Usually calculated as (this year – year ago). Can be used for all measures.
Amount that the promoted price is below the regular price, expressed in dollars or cents. Calculated as (Base Price – Promoted Price). Note that a 10¢ discount could be 8% in one year but 10% the next year if the base price increased in the second year.
One tactic in an account-based marketing (ABM) strategy. It’s the practice of serving display advertising only to specified titles at the target accounts you designate. For example, if you’re marketing a new type of food packaging to General Mills, you might target multiple levels of responsibility, such as Senior Product Manager, Senior Product Marketer, VP of Product Marketing. Only people who work at General Mills and have these titles would be shown your ads.
An active user is a person who accesses an app for a given period of time. During this period each user is counted uniquely to provide an app developer with an accurate figure of how many people use an app, whether it be daily, weekly, or monthly.
Amount that the promoted price is below the regular price, expressed in dollars or cents. Calculated as (Base Price – Promoted Price). Note that a 10¢ discount could be 8% in one year but 10% the next year if the base price increased in the second year.
The total number of people that have been exposed to or could possibly be exposed to an ad during any specific time period.
The most common form of digital advertising. These ad units, which include static graphics, videos and/or interactive rich media, are displayed on a web page or in an application.
Ad blocker (Online)
User software that prevents Internet ads from being displayed.
The action taken when a user interacts with an ad by either clicking on it with their mouse or by pressing enter on their keyboard.
Ad download (Online)
Advertising that is downloaded to the user’s browser.
Advertising effectiveness pertains to how well a company’s advertising accomplishes the intended. Small companies use many different statistics or metrics to measure their advertising effectiveness. A company’s advertising effectiveness usually increases over time with many messages or exposures. But certain advertising objectives can be realized almost immediately using measuring techniques such as reach, sales and profits, brand awareness, and testing advertising effectiveness.
An intermediary in the process of digital media trading that connects buyers and sellers of ad inventory in an auction-based setting. The Ad Exchange provides a technology platform that functions in real-time – as the user loads the webpage, the publishers’ unsold inventory becomes available for purchase to advertisers on a single impression basis. The highest bidder wins the impression, at which point the advertiser’s creative is displayed on the webpage to the user.
The number of times an ad has been served, regardless of whether the user has actually seen or interacted with the ad in any way. (Also see Ad Server)
Website publishers serve ads to visitors when they visit a web page. The number of potential ads that can be served is considered their ad inventory. For example, if The Gotham Times averages 1,000 visits to their home page in any given week, and they have space for two display ads on their home page, then their potential ad inventory is 2,000 impressions per week.
A vendor that connects advertisers to publishers. Ad networks act as a single point of contact between publishers and advertisers, helping negotiate supply and demand.
Ad ops is short for ad operations and usually refers to the many technical tasks needed for running online advertising campaigns. Ad ops ensure smooth delivery for insertion orders and good inventory management.
Ad request (Online)
Request for an advertisement coming directly from a user’s browser, as recorded by the ad server.
The technology and service that places advertisements on websites. Ad serving technology companies provide software to web sites and advertisers to serve ads, count them, choose the ads that will make the website or advertiser most money, and monitor the progress of different advertising campaigns.
Ad Server-Based Attribution Data Collection
The process of collecting digital user activity through a brand’s first-party or third-party ad server for the purposes of multi-touch attribution.
Ad stream (Online)
Series of ads displayed during the user’s visit to a Web site.
Delivering ads to a pre-selected audience based on various attributes, such as geography, demographics, psychographics, web browsing behavior and past purchases. (Also see Behavioral Targeting, Contextual Targeting, and Geographic Targeting.)
A size-and-format specification for an ad. The Interactive Advertising Bureau, a trade association promoting digital ad standard and practices, has a set of guidelines for sizes.
Ad view (Online)
Actual viewing of an ad by the user. It is not directly measurable today, but inferred from the measurement of ads called for display on the user’s computer.
Marketing and media channels where individual, user-level data (such as cookie data) is available to track touch points in the consumer journey.
A commercial time period that is scheduled immediately preceding or following a scheduled programme on the same station in which a TV commercial spot can be placed. Opposite of an in-programme placement. Also called a break position.
An advertisement (often shortened to advert or ad) is a means to promote a product, brand, or service to a viewership in order to attract interest, engagement and sales. An advert is different from other types of marketing because it is paid for, and because the creator of an advert has total control over the content and message. The intention of an ad is to affect buyer behavior and influence those who view ads to purchase or otherwise engage with the subject of the advert, usually a product. Advertisements come in many forms, from copy to interactive video, and have evolved to become a crucial feature of the app marketplace.
Any company looking to promote their brand, service, or product; for example, showing its creative on publisher web pages to induce the user to make a purchase, etc.
An organisation acting as an agent for a producer of goods or services (an advertiser) devoted to developing and placing advertising in order to further the acceptance of a brand product, service or idea.
Volume of advertising to which viewers are exposed. In the case of television, advertising clutter may refer to the volume of advertising spots carried by a broadcast channel. Or, it may refer to the average amount of time (typically minutes per hour) during the day/daypart in which viewers are exposed to advertising spots.
A company that serves as a broker between a group of publishers and a group of advertisers. Networks traditionally aggregate publisher inventory and broker that inventory to advertisers or other ad networks.
A unit interval (e.g. 10-second, 15-second, 20-second, 30-second, etc.) containing a commercial message supplied by an advertiser for insertion in the transmissions of a TV channel.
Publishers have websites that get traffic and advertisers want to promote their products to the people who visit those websites. Affiliate marketing is an agreement between a publisher and an advertiser where the publisher receives compensation for every click delivered and/or every sale made of the advertiser’s product or service.
A media agency is a company or entity that applies its expertise and technology to help marketers buy advertising spots media sellers and marketplaces such as publishers, ad exchanges, ad networks, sales house etc.
A multi-touch attribution methodology that uses machine-learning to calculate and fractionally assign credit for a given success metric to the influential marketing touchpoints and dimensions (campaign, placement, publisher, creative, offer, etc.) along the consumer journey, as well as to predict the outcome of future marketing spend allocations.
All Commodity Volume (ACV)
All Commodity Volume, commonly referred to as ACV, is the annual dollar sales of everything sold in a store. Although this measure is rarely used by itself, it is the key component used to calculate how much of the market is covered. Related measures include % ACV Distribution, % ACV with Merchandising and Sales per $MM ACV.
Analytics is the term that collates all functions of analysis, collection and presentation of data which is automatically compiled by data trackers. Analytics allows you to interpret data easily, and data that analytics provides can be applied to a multitude of uses in order to improve performance.
Stores that have either Display, Feature, TPR or any combination of these merchandising conditions at any point during a specific period are counted in measures with “Any Promo.”
One of the geographies available from Nielsen, it stands for All Outlet Combined (and used to be known as “FDMx”). It includes the following channels: Food/Grocery, Drug, Mass Merchandisers excluding Walmart.
ARF (Canada / USA)
Advertising Research Foundation: National trade association for advertising research in Canada and in the USA.
Arianna is the television ratings analysis tool of AGB Nielsen Media Research, helping broadcast researchers, agency planner/buyers and managers around the world navigate the complexities of TV ratings data within a single software environment. Arianna has been developed by AGB Nielsen Media Research, based on more than a decade of experience as a provider of proprietary television ratings analysis software. Expert understanding of, and experience in TAM, ensures comprehensive delivery of support to thousands of global users across 5 continents, in more than 30 countries.
Average Revenue Per User. A useful performance indicator that divides the total revenue for a given period of time with the number of active users in an application. ARPU is useful as an indicator of the overall health of the business, or as a means of distinguishing the relative value of different segments of users. For example, comparing the ARPU for a set of users acquired from one partner versus another partner provides insight into the relative value of marketing efforts with these two partners.
Australian Subscription Television and Radio Association: Industry body representing the interests of its members by providing a unified voice on issues affecting subscription television. ASTRA represents satellite services, narrowcast television services, programme channel providers, subscription television operators, communications companies and other associate members.
ASTV (Advertiser supported television)
US term for original TV programming that is syndicated to supported independent TV stations for a reduced or zero fee on the television back of financial support from one or more advertisers, in return for which the advertisers are granted commercial space within the programmes offered to the TV stations. The principle is similar to programme barter.
ATS (Average time spent viewing)
Total sum of all recorded time spent viewing (e.g. minutes) across a given period (e.g. day, week) divided by the number of individuals in the universe/population being measured. More commonly known as ATV. (see also ATV (Average time viewed))
The goal of attribution is to identify which touch, of the many possible, is most (or partially) responsible for a conversion, so ROI can be calculated. First touch, last touch, and multi-touch are common attribution models. For example, a sale might begin with an ad, lead to an email campaign, and end with a phone call from a sales person. With first-touch attribution, the ad would get the entire credit for the sale. With last-touch, the phone call gets all the credit. With multi-touch, the ad, the email and the phone call each get partial credit.
Attribution modeling is the method advertisers use to determine the value of different channels on their marketing efforts. By assigning value for a pre-arranged advertising interaction to one or more publishers, attribution modeling helps advertisers determine which channels provide the most benefit to their marketing campaign.
ATV (Average time viewed)
Average of the total minutes viewed divided by the total individual universe.
Reach measure denoting the total number of different people (or homes) exposed to a medium over a specified period; such as a half-hour TV programme broadcast.
Demographic, behavioral, interest and intent qualities that characterize an individual. Examples include gender, age, occupation, income, lifestyle interests, purchase intent and more.
The profile of measured audiences to a channel, programme, etc. with respect to selected demographic and/or other variables.
Audience extension is an application of behavioral targeting. Audience extension allows advertisers to target a premium site audience, which is often sold out, across other sites that belong to the same ad network. The ad buy is then made at a lower CPM than running ads on the premium site alone. Audience extension is used for premium site audiences which are especially sought after. Principles of audience extension are sometimes used by publishers to synthetically mimic the same or like audiences beyond owned and operated webs sites. That valuable audience is then partially “recovered” on other, sometimes less sought after channels on the same or other publishers’ websites. Audience extension requires cookies or other audience identifiers as triggers for behavioral targeting techniques.
A scaling factor used in the UK, to estimate some audience sizes when only homes and population data are available.
An identifiable group of individuals who share similar characteristics, needs or behaviors and who generally respond in a predictable matter to a given marketing or media stimulation.
Percentage of total TV viewing across a specified time interval of a given channel, programme or other use of TV set.
The ratio of the cumulative audience to the average audience across a given period (e.g. programme, daypart).
Automated Guaranteed Digital Media Inventory
Automated Guaranteed Digital Media Inventory is a type of inventory that is reserved, has fixed pricing and incorporates a one seller-to-one buyer type of participation. Other terms used in the market to describe Automated Guaranteed Digital Media Inventory are: Programmatic Guaranteed, Programmatic Premium, Programmatic Direct and Programmatic Reserved. Prioritization in the ad server, the Deal ID, Data usage, Transparency to buyer and pricing floors are other things to consider as an impact to Automated Guaranteed Digital Media Inventory.
Availability of a commercial position/time slot in a scheduled commercial break on a given TV channel/network that is available for purchase by an advertiser.
The average number of members of a specified population (e.g. target group of individuals or households) viewing a TV channel over a given interval (e.g. programme, daypart).
Average minutes per viewer (Avg Min/Vw)
The average minutes viewed per person belonging to a specified target universe/population across a time interval, calculated against only those who viewed at all during that period. In contrast to average minutes per viewer, this measure covers all members of the population; i.e. viewers and non-viewers alike.
What a shopper pays, on average. Calculated as Total Dollars/Total Volume (or / Total Units). Note that nobody really pays this price, since it is a blend of promoted and regular prices.
Also known as “display ads”, banner advertisements are a form of graphical ads embedded into a webpage, typically including a combination of static/animated images, text and/or video designed to convey a marketing message and/or cause the user to take an action. Banner dimensions are typically defined by width and height, represented in pixels.
Best measure to use for the “regular” price a shopper pays when a product is not on sale. This is derived from Base $ / Base Units (or / Base Volume), so includes all stores every week whether or not the product is on sale. Because Base Price includes all stores, it is usually a better measure than Non-Promoted Price which will only include stores without price cuts that week.
Key measure of the health of the business. Amount that would have been sold if there was no merchandising. Drivers of base sales (sometimes called base volume) are distribution, regular price, advertising, consumer promotions, competition, consumer trends. Base sales are derived from weighting and smoothing the sales in non-promoted stores for the weeks before and after each individual week. At the simplest conceptual level, base sales are a weighted average of non-promoted sales.
Nielsen and IRI each have their own methods for calculating base sales which differ somewhat but use a similar approach. Each supplier has a proprietary statistical method and unfortunately they do not share their specific “formulas.” The models used involve some version of exponential smoothing time series, accounting for trend and seasonality.
Meter installed on all TV sets within the home, generating statements of what source is being tuned to when the TV set is on, and which persons in the home have registered their presence as viewers.
The intrinsic value and level of performance against a set of key performance indicators (KPIs) derived solely from a brand’s recognition in the marketplace. It provides an initial value from which to evaluate the impact of incremental marketing investments.
Collective term for TV and radio channels featuring in the basic entry channel packages offered by cable operators to their customers for a low subscription charge. It excludes mini-pay TV channels on more advanced tiers as well as premium pay-TV channels and other services (e.g. PPV/paid for on demand services).
Behavioural targeting (Internet
Marketing tool employed by online advertisers for improving the efficiency of their campaigns, which involves determining which ad messages to send to a user on the basis of information collected about the user’s past web browsing behaviour.
The component of the buying algorithm that faces the auction and places bids on impressions.
An IAB Universal Brand Package ad unit template designed with options for rich interactivity to display prominently inline with Publishers’ webpage content. A distinct feature of the Billboard is a close button that a user may click to collapse the ad completely if the user doesn’t want to see the ad.
Web site on which Internet users make regular entries. Most blogs are based around a particular theme, with readers encouraged to add comments. Blogs typically contain a number of pages of related topics, along with links to other blogs and web sites. Forms include text, video (vblog), photographs (photoblog), or audio (podcasting). Authors of blog sites are known as bloggers.
The extent or level to which a potential consumer can recall and identify a particular product or service. Increased brand awareness is one of the two customary important goals for a digital advertising campaign (the other being a conversion of some kind).
The measurement of the extent to which a consumer has a meaningful interaction with a brand (visits a landing page, views a video, downloads content, etc.) when exposed to a brand marketer’s middle- and upper-funnel marketing or media.
Over-the-air transmission of TV channel programming from a central broadcast source to multiple homes in the channel reception area via a network of land transmitters or via satellite.
Call to Action (CTA)
A phrase included within an ad, or a graphic element such as a button, which invites the audience to take a certain action. Examples include phrases such as Click to Read More, Download Your Free eBook Now, or Click Here.
A callback (known to some as a postback) is a ping made between one server and another. A callback can occur manually, or it can be automatically, and is triggered when a particular action or event is completed within an app.
A promotional effort over a specified interval based on the same strategy and creative idea. TV advertising campaigns typically consist of a schedule of advertising spots that are transmitted in one or more discrete batches lasting several weeks or longer or at lower intensity over longer and more continuous periods.
Charts and graphs that provide a snapshot of campaign performance at a point in time so executives can spot problems, or identify marketplace opportunities, and shift gears, if a better course of action is required.
Campaign optimization saves time and money while helping marketers achieve and improve upon business objectives. Efficiently collect the necessary data to analyze marketing campaigns and make informed data-driven business decisions. Campaign analysis not only helps marketers to reduce waste by making short term fixes to marketing campaign mix but can also provide the marketer with insight into maximizing the lifetime value of a customer over time.
The campaign analysis and optimization process can be divided into two major categories: a) Harvesting Low Hanging Fruit: areas in need of improvement that are relatively easy to identify and provide quick and effective results; and, b) Long Term Optimization: the process of continual optimization over time and includes improving the customer’s overall lifetime value.
Small monthly fee per subscriber, which is normally paid by pay-TV service providers/platform operators to the channels they carry, although the reverse can also apply depending on available capacity, channel demand and conditions of service pricing, which vary greatly from country to country.
A discount granted by the media supplier to an advertiser for payment within a certain period of time – e.g., a 2 percent discount if payment is made within ten days of invoice. Also referred to as prompt payment discount.
A digital and/or offline marketing category. Channels can be classified by paid, owned and earned, as well as addressable versus non-addressable.
Number of individuals/TV homes that can receive a TV channel within its broadcast coverage and/or other (e.g. cable, DSL network) distribution area, as defined by set technical reception criteria. Channel coverage is often expressed as a percentage of the total survey population.
A channel partner is a third-party organization or individual that markets and sells products, services or technologies for a manufacturer or service provider via a partnering relationship.
Estimated percentage of TV homes within the survey universe that (a) can receive and (b) have one or more of their TV sets tuned to a given TV channel. The definition may include stipulations about acceptable picture quality.
If a publisher is being paid on a cost-per-click basis and wants to track clicks, they can provide click-tracking URLs where a partner can ping them on every click.
The number of times people clicked on the links in your message. This is often referred to as CTR (Click-Through Rate). Note you must have enabled click-through tracking in the campaign in order for this to be recorded.
The number of clicks divided by total impressions served for a particular creative or campaign.
Interference on a channel due to another signal on the same channel.
Defines the condition where members of a reference target are the focus of an analysis only if they are watching TV together with other members, chosen according specific demographics. An example of a Co-viewing target is Females watching with Children.
Advertisement, announcement, spot or message aired on television, radio or cable which is paid for by an advertiser.
Audiences for advertising commercial spots. Different TAM systems employ different algorithms for computing commercial ratings/GRPs for minute by minute or second by second GRP measures.
Profit-making TV channels/services that rely on commercial advertising, pay-TV or other (e.g. telephone voting) payment revenues from their audiences.
Competitive Retailer Marketing Area (CRMA)
CRMA is IRI’s term for the overall geographic area in which a retailer operates and is typically used to compare performance of a retailer and its competition. The retailer’s own stores make up it’s Trading Area while the CRMA includes all stores physically located within that geography, defined by counties. The CRMA encompasses both a retailer and its competition.
The CRMA minus the retailer is called the ROM or Rest of Market. The ROM gives you a single comparison point for each retailer, a weighted average of all the competitors and is important for benchmarking.
To create the remaining market for a retailer, IRI and Nielsen include all competitive stores physically located within the boundaries of that retailer’s trading area.
The ROM or CRMA gives you a single comparison point for each retailer, a weighted average of all the competitors or the market as a whole.
Total attributed detail page hits / impressions delivered. This measures the total product consideration level and can include multiple detail page visits by the same person.
Consideration Rate (CSR)
Considerations divided by Impressions.
Factors associated with specific channels or tactics that limit the extent to which the media spend invested in them can be changed during the optimization process, and then the specific range of values in which media spend can vary to ensure the recommendations produced by an attribution solution can realistically be put in market given those factors. For example, the available inventory of branded search terms in a paid search marketplace is a constraint that limits the ability for increase spend on those terms more than 60% and decrease spend on those terms more than 100%.
Consumer generated media
Materials posted by users on the Internet. At first, the term was mainly used in connection with Internet forums, blogging sites and wikis; but has subsequently widened to cover new multimedia, video and social networking applications.
A chronological sequence of all the marketing and media touchpoints experienced by an individual user.
A delivery mechanism for pixels that eliminates the need to place multiple data tracking codes on a website.
Selecting audiences based on the type of content being displayed on a particular webpage. An example of contextual advertising is placing ads for hair care products on the Vogue website.
When a user signs up, makes a purchase, or performs some other desired action in response to a marketing activity. Also called an acquisition or action, especially to distinguish it from clicks in an acronym.
Expressed as a percentage, a conversion rate can be calculated in two ways- The first is by the taking the number of users who completed the conversion and dividing it by the total number of impressions served. The second, more common way, is by taking the number of users who completed the conversion and dividing it by the total number of users who clicked on the ad.
Monitoring how many conversions have occurred during any specific time period, and analyzing which ads led to the conversions.
A small file sent from a web server and placed on the visitor’s computer to store information unique to that browser. Often used by advertisers to track the number and frequency of advertisements shown to a visitor. Cookies are also used to provide visitors with personalization and enable the serving of Behaviorally Targeted advertisements.
The price that is paid for media.
Financial performance measure of a schedule of advertising spots that is calculated by dividing the price paid by the audience delivery with reference to the target audience(s) of the advertising campaign. The principal measures of cost efficiency are Cost per rating point (CPR) and Cost per thousand (CPT or CPM).
Mobile advertising payment mechanics are the method through which advertisers purchase campaign inventory.
Each mechanic works on a “cost per” basis. When a user completes a particular pre-agreed action (and when it can be proved complete) the advertiser pays the publisher.
The total cost of a campaign is calculated by determining how many different users from that particular channel completed the action during the length of the campaign.
Cost per Acquisition
The cost of acquiring one customer. Typically calculated by dividing the total amount spent on an advertising campaign by the number of customers acquired through that campaign.
Cost per Lead (CPL)
How much an advertiser pays, on average, for each ad click that results in a lead conversion. CPL is calculated by dividing the total amount spent on a campaign by the number of leads generated.
Cost Per Thousand (CPM)
The standard pricing model for many media channels (e.g. online display, video, etc.). Alternative pricing models are flat rate, pay per click (PPC) or cost per acquisition (CPA).
Cost plus is an industry standard business model and pricing methodology which adds aggregated transaction fees to the original price a publisher sells its ad inventory. Where there is often a complex and long supply chain involving many intermediaries the cost plus model can making procuring media expensive and can even lead to a situation where the transaction cost is larger than the actual price charged for the ad inventory bought. It is estimated that in many cases the transaction costs for programmatic media buying are around 60%. There is significant room for improvement particularly as high transaction costs are a barrier to some marketers committing more advertising spend to programmatic media buying even despite the advantage of reduced waste and better targeting.
The process of associating actualized cost data with paid media channels and their publishers to accurately calculate efficiency metrics like cost per acquisition.
The total cost of the campaign divided by the Total Considerations for the campaign.
Cost of Internet advertising based on the number of visitors taking some specifically defined action in response to an ad, divided by the money paid.
Cost of Internet advertising based on the number of clicks an ad receives divided by the money being paid. CPC’s vary according to the search engine being used.
CPCV (Cost per Completed Video/View)
A measure of the cost to an advertiser for each time a video ad is viewed through completion.
CPI (Cost per Install)
A measure of the cost to an advertiser for each user that installs their mobile app. CPI as a payment model is an extension of the CPA model, specific to the case of mobile application installs.
Cost of Internet advertising based on the number of ad impressions divided by the money paid.
CPM (Cost per Thousand or “Mille”
A measure of the cost to an advertiser for each 1,000 advertising impressions served on their behalf. CPM was the earliest payment model used in digital advertising, and is still in use as a basic pricing model for many media contracts. Similar to CPC and CPA, advertisers will regularly compare total media spend to total impressions for a campaign, to understand their effective cost per thousand (eCPM), even if that’s not the contracted payment model for a campaign.
CPV (Cost per Video/View)
A measure of the cost to an advertiser for each display of a video ad.
CR (Conversion Rate)
The ratio of whatever you define as a conversion against the measure of the efforts used to drive it, such as impressions or clicks.
The process of matching a single user to two or more connected device ID’s associated with that user. This process may also be referred to as “cross-device matching,” “cross-device pairing,” or “cross-device bridging.” There are three different approaches to this process that can be used individually or together to maximize accuracy and scale first-party deterministic, third-party deterministic, or third-party probabilistic.
Serving the same buyer targeted ads across multiple devices. Cross-device targeting allows advertisers to reach their audiences in a sequential, repetitive manner regardless of the device they’re on, whether it’s a tablet, desktop or smartphone. This has a similar effect to the old-school tactics of gaining reach and frequency through using a range of channels such as radio + newspaper + billboards + direct mail.
Consumer Shopper Marketing
CTR (Click-through Rate)
The ratio of clicks to impressions, this measure helps advertisers understand the effectiveness of their pay-per-click campaigns. CTR = clicks / impressions.
Cume Weighted Weeks (“CWW” in Nielsen, “Wtd Wks” in IRI)
“Cume” is short for Cumulative. This is the most comprehensive merchandising measure, taking into account both the reach and frequency of merchandising support. It should always be stated relative to the length of the period you are talking about: “Brand X got 14.2 CWW of Feature in the most recent 52 weeks” or “Category Y got 2.8 CWW of merchandising in the 4 weeks ending 6/30/12.” CWW is calculated by summing the %ACV support for individual weeks and dividing by the %ACV support for the whole period and can be calculated for an individual merchandising condition (e.g. Display Only) or for the overall level of merchandising (e.g. Any Promotion).
A dashboard is a visual display of all of your data. While it can be used in all kinds of different ways, its primary intention is to provide information at-a-glance, such as KPIs.
A dashboard usually sits on its own page and receives information from a linked database. In many cases it’s configurable, allowing you the ability to choose which data you want to see and whether you want to include charts or graphs to visualize the numbers.
Data are values of qualitative or quantitative variables, belonging to a set of items.
Degree to which client users can access data generated by a TAM system. Different users may enjoy different levels of access. The degree of access is partly a function of the data which Users are permitted to examine and partly a function of the software options for analysis.
Availability of TAM data to different interest groups: not just the primary users comprising advertisers, media buyers and media owners, but also secondary users comprising software houses/computer bureaus, market research companies, trade press and other potential interest groups.
A process that reduces the number of bits used to encode a signal by eliminating gaps, empty fields, redundancies, or unnecessary data.
Market research output that combines data from two separate, though not necessarily independently drawn, survey samples by means of pairing individuals from each contributing sample on the basis of socio-demographic and/or other data. It may be used as an alternative to single source survey research in order not to over-burden survey respondents with the collection of two sets of research data.
Data Management Platform (DMP)
A data management platform (DMP) provides a marketer, agency, or trading desk with a single integrated view of all campaign and audience data, helping with overall management and analysis of data. This enables the marketer or agency to best target their advertising in order to hit the right people at the right time with the right message.
Data providers source various types of data including market intelligence, audience intention, and publisher performance data. This data is then collated and packaged to sell to companies such as demand-side platforms and trading desks. Brought together in a DMP, the 3rd party data compliments the 1st party data, which is owned and generated by the marketer, agency, or trading desk. This allows for smarter bidding in ad auctions and for improved digital targeting of audience for smarter and less wasteful audience composition.
Data science incorporates varying elements and builds on techniques and theories from many fields, including math, statistics, data engineering, pattern recognition and learning, advanced computing, visualization, uncertainty modeling, data warehousing, and high performance computing with the goal of extracting meaning from data and creating data products.
Market research company engaged in the collection and production of TAM data for delivery to the market.
DCT (Digital cable TV)
Digital television services transmitted via cable.
Deep links are a type of link that, when clicked on or redirected to, send users directly to an app instead of a website or a store.
Deep linking does this by specifying a custom URL scheme (iOSs Universal Links) or an intent URL (on Android devices) that opens your app if it’s already installed. Deep links can also be set to direct to specific events or pages, which could tie into campaigns that you may want to run.
Demand-Side Platform (DSP)
A demand-side platform (DSP) enables a marketer to utilize a single interface to perform programmatic and Real-Time Bidding media buying. A DSP allows the marketer to manage bidding on and buying ad inventory and data across multiple ad exchanges, ad market-places, and data provider accounts.
Population variable for classifying individuals or households in terms of personal or family characteristics. Examples include Region; Type of settlement; Household size; Age; Sex; Social grade/Socio-economic level; Work status; Occupation; Education; Presence of children; Life stage.
The URL users are redirected to in an advertising campaign, usually an app store page. Also known as a download URL.
A Device ID is a string of numbers and letters that identifies every individual smartphone or tablet in the world. The ID number itself is stored on the mobile device and it can be retrieved by any app that is downloaded and installed. Apps typically retrieve the ID to use it for identification when talking to servers.
A type of connected device technology that assigns its own unique device ID. Examples include smartphones, tablets, desktops and connected TVs.
Stands for Double click for Advertiser. It is an ad management and ad serving solution that helps agencies and advertisers manage the entire scope of digital advertising programs.
A characteristic or feature associated with a marketing or media touchpoint. Each touchpoint may include over a dozen dimensions. For example, an online display ad may include the campaign, placement, publisher, ad size, creative, line of business, etc.
Direct Media Buy
Pre-brokered agreements between an advertiser and publisher to deliver a certain amount of specific inventory for a preset cost.
A campaign or ad specifically created to encourage audiences to take immediate action.
Usually any advertisement other than a classified or video advertisement. Display ads are generally several columns wide and often contain color, graphics, and pictures. They are assembled or typeset by the advertiser and supplied to the printer or publisher.
A digital advertising format where graphic ads are shown on a web page. The term originated in newspapers, and the principles still apply. Display ads can be graphics, videos, interactive images (a quiz or a game), and expandable (Also see Expandable Banner). The most common sizes for display ads are- Banner- 728 x 90 Rectangle- 336 x 280 Skyscraper- 160 x 600 Square- 250 x 250
Measures how much display activity took place during weeks when there was also a feature. You want as much display as possible to happen when features are also happening, as the impact of the 2 tactics together is always higher than when display happens alone, assuming the same price point.
Calculated as (weeks of Any Display)/(weeks of Feature & Display). Display Execution ranges between 0-100% and higher is better.
DMA stands for Designated Market Area. DMAs are usually counties (or sometimes split counties) that can receive the same television and radio stations and other types of media such as newspapers. DMAs generally coincide with large metropolitan areas such as Chicago, St. Louis, etc.
Amount of product sold at retail expressed in dollars. Unit Sales x Avg Price/Unit = Dollar Sales. EQ Sales x Avg Price/EQ = Dollar Sales. Most often used by Sales and Finance, also by Marketing. Good for comparing across categories since dollars are common to everything sold in the store.
Domestic TV channel
Any TV channel whose programmes and/or advertising are specifically targeted at national, regional or local audiences within the country of reception. The definition is independent of the point of origin of the broadcasts. At the same time the same TV channel may be broadcast as a domestic service to more than one national market.
Term used widely in interactive TV (iTV terms) to refer to the signal pathway from the service provider (e.g. cable operator) to the home. This will usually have higher bandwidth demands than the upstream return path from the home to the service provider. Opposite of Upstream.
DRTV (Direct response TV)
TV infomercials or advertising spots that permit or encourage consumers to directly respond to the advertiser.
Direct-To-Home satellite transmission and reception – TV transmissions via satellite intended for “direct-to-home” reception in households equipped with parabolic dish antenna.
Purchase of products and services over the Internet.
The free, publicity generated marketing produced by a brand’s fans. Examples include Facebook likes, retweets, online reviews, word of mouth, etc.
effective cost per thousand impressions = Total Spending/Impressions * 1000
Elasticity is a key concept when determining how much a change in a business driver results in a change in volume. For simplicity, you multiply the % change in the driver times the elasticity to get the % change in volume. (The formula for applying elasticity can be more complex, especially for pricing, but this simple multiplication will get a you a good answer if the change in the driver is within +/- 20%.
Clickable banner ads and links that appear within emails and e-newsletters.
European Media Research Organisations: International group of experts in national media audience measurement (mainly representatives of market research companies engaged in media research or members of industry committees overseeing media research).
In television, term refers to the process of transforming signals that requires specific decryption/decoding equipment to display them on the TV screen. Many domestic satellite channels, whether subscription or free-to-air, employ encryption for reasons of copyright. Pay-TV services employ additional conditional access technologies in order to restrict access to authorised (paying) customers and prevent signal theft or piracy.
A KPI metric used to measure and optimize brand marketing campaigns. The score is typically a compilation of a set of events known as brand engagement activities, such as first time website visits, rich-media ad interactions, video completions, etc.
Household variables designating the type of reception, number and type of TV sets and other audiovisual equipment in the home (e.g. ownership of VCR’s, DVD’s, video games consoles, PC’s etc.). They may also be related to viewing habits (e.g. claimed weight or claimed balance of viewing).
Equivalized (EQ) Sales
Physical volume of product sold at retail expressed in a common unit relevant to the category. Use when comparing products of different sizes. Some common EQ units are pounds (LBS), gallons, ounces, cases. Most often used by Operations, also by Marketing and Sales.
Even Weighted- Linear
A rules-based attribution model that distributes equal credit for a given success metric to each touchpoint experienced by a user.
Factors external to the dimensions associated with marketing, including seasonal factors (weather, holidays, etc.), economic factors (interest rates, gas prices, etc.) and competitive activities (changes to media tactics, new product launches, etc.) that lie outside of marketers’ immediate control and may impact marketing effectiveness.
Rich media ads that can be enlarged to dimensions beyond the initial dimensions of the placement they fill on the webpage. The user initiates expanding events, sometimes after the ad initially expands briefly on its own to catch the user’s attention.
Banners that increase in size when a user hovers over them.
One of the geographies available from IRI, it stands for “Food-Drug-Mass excluding Walmart” (and is now known as “AOC” in Nielsen). It includes the following channels: Food/Grocery, Drug, Mass Merchandisers excluding Walmart.
Retail merchandising condition executed by retailers and measured by going through newspapers and flyers. A Feature is a printed ad vehicle distributed by the retailer usually weekly, via newspapers, direct mail or in-store. Most commonly used is Feature without Display. Any Feature (with or without a Display) and Feature only (without a price cut) are also available but not used that often.
First Click/First Touch
A rules-based attribution model that gives 100% of the credit for a given success metric to the first touchpoint experienced by a user.
Consumer data that a brand produces at no cost. This data is typically collected from direct contact with the company’s customers, and includes site analytics data, CRM data, etc.
One of three cross-device mapping approaches. It may also be referred to as “brand authentication” since this approach uses the brand’s own first-party, authenticated user data. User authentication may include a website login, app interaction, email interaction, etc.
Floating ad (Online)
Ads that appear within the main browser window on top of the Web page’s normal content.
The number of times an ad is served to the same consumer during a specific time period. Since multiple users can often access the Internet from the same device, frequency is calculated based on the number of times an ad is delivered to a particular device’s browser.
A rate discount given to an advertiser who purchases a specific schedule within a specific period of time, e.g., six ads within one year.
Distribution showing the percentage of the target audience population who have viewed a schedule of advertising spots (or sequence of programmes) at each level of frequency.
Selecting an audience for a campaign based on zip codes, designated marketing area (DMA), cities, states and countries.
GRETL is an open-source statistical package, mainly for econometrics. The name is an acronym for Gnu Regression, Econometrics and Time-series Library.
The Gross sum of all exposures (number of individuals/homes) without regard of duplication.
Gross Rating Point is a term used in advertising to measure the size of an audience reached by a specific media vehicle or schedule. It is the product of the percentage of the target audience reached by an advertisement, times the frequency they see it in a given campaign.
A value that quantifies the degree to which different channels lift, or in some cases, cannibalize each other. For example, as the result of a halo effect, a marketer may see an increase in branded search queries or conversions while running an online display campaign.
Commonly used abbreviation for Household or Home, the two terms being equivalent.
High-Frequency Trading (HFT)
High-frequency trading (HFT) is a machine-to-machine program trading platform that uses powerful computers to transact a large number of orders at very fast speeds. High-frequency trading uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with the best models, lowest transaction costs, and fastest execution speeds are most successful. It is estimated that the majority of all securities and commodities exchange volume comes from high-frequency trading orders. A high-frequency trading process typically takes place in milliseconds or less and results in greater liquidity, cost savings efficiency for the buyer, and often higher eCPMs and/or better monetization for the seller.
On-screen shopping services that may take the form of TV broadcast channels dedicated to home shopping as well as additional interactive text and services.
Number of homes connected and subscribing to one or more services offered by a cable network, including cable television.
Hours of transmission
Number of hours per day during which a television channel is on air (i.e. transmits programming). The total may vary by day of week or by region.
Hours of viewing
The average daily/weekly number of hours of viewing by a selected audience category to a given TV channel or in total across a selected interval (usually monthly, quarterly or annually).
Housewife/ housekeeper / Household shopper
Widely employed demographic classification that specifies the person in panel household claiming primary responsibility for the household’s grocery shopping. Precise definitions vary. For example, some systems specify one and only one housewife/housekeeper per household, who may be a man or woman. Others may specify that the housewife/housekeeper has to be a woman, and so on.
Interest-based advertising — which is also sometimes called “online behavioral advertising” — uses information gathered about a site user’s visits over time and across different websites or applications in order to help predict preferences and show ads that are more likely to be of interest to you. For example, a sporting goods manufacturer might work with an advertising network that collects and uses interest-based advertising information to deliver ads to the browsers of users that have recently visited sports-related sites, or an airline might direct ads to users that recently visited mobile travel apps. Definition from aboutads.info site: http://www.aboutads.info/how-interest-based-ads-work
The Identifier for Advertisers (known as the IDFA) is a random device identifier assigned by Apple to a user’s device. Advertisers use this identifier to track data so they can deliver customized advertising.
The IDFA reveals no personal information. Instead, it’s used for tracking and identifying a user, which then allows advertisers to access aggregated data which can be used to discover information – such as which in-app events they trigger.
The IDFA can also identify users when they interact with a mobile advertising campaign, provided the channel offers IDFA tracking and that the advertiser tracks users who interact with adverts successfully. If this occurs the IDFA can pickup whether specific users click an advert for payment and attribution purposes.
In digital media, impressions are a measure of the number of times a media advertisement or marketing message is served. In offline media, impressions are a measure of the number of times an ad or message may have been seen.
In home viewing
TV viewing that takes place in the home.
A video creative played in standard banner placements rather than in a video player.
Customers who browsed specific products categories/products in the last 30 days.
In-Stream Video Ads
Video ads played before, during or after the video content the publisher is delivering to the consumer.
Independent Media Trader (IMT)
Arms-length buyer and seller of advertising inventory offering execution services on behalf of publishers, marketers and/or agencies, and networks. The IMT may or may not offer additional services to buyers and sellers. The media trader may trade on its own behalf and may or may not bear risk as principal. Less common, the independent media trader may also trade continuously in specific market segments as a Market Maker. In its role as Market Maker, the IMT may or may not have special privileges and/or responsibilities granted to it by the publisher, ad exchange, and/or audience or contextual data supplier.
The affinity between tactics used within one channel and those used within another, such as which online display ads drive searches on which keywords.
Advertising which allows for viewer interaction with on-screen image using the remote control handset in order to access further information or other materials. Interactive advertising is restricted to digital television services.
The affinity between different tactics used within the same channel, such as which non-branded keywords drive searches on which branded keywords.
The total amount of impressions that a given publisher/network has to offer (usually given a certain period of time, e.g. monthly inventory is in the range of X impressions).
Key Performance Indicator (KPI)
The metric that a marketer uses to judge the success of a marketing initiative.
Last Click/Last Touch
A rules-based attribution model that gives 100% of the credit for a given success metric to the last marketing touchpoint experienced by a user.
Classification variable based on individual behaviours, such as leisure activities, recreational habits or product purchase/ consumption behaviours.
% increase in sales (in $ or volume) obtained due to retailer merchandising. Calculated as (Incremental/Base) x 100.
Longitudinal data analysis
Analysis of disaggregated viewing data, that is based on individual viewing records over time. Key output measures are audience reach and frequency, although longitudinal analyses can, like cross-sectional analyses, also supply estimates of ratings, amount of viewing and audience share.
If you’re like most businesses, you know who your customers are from a demographic and even psychographic point of view. A Lookalike Audience targets people who are similar to your existing customers which helps improve your conversion rates. You can use Lookalike Audiences when you’re running online display, Facebook, mobile display or just about any other kind of digital marketing campaign.
The defined period of time for which an ad can be expected to influence a user to convert or engage with a brand after exposure.
Marketing Mix Modeling
A statistical modeling attribution approach that uses summary-level data from both non-addressable channels and addressable channels to infer the relationships between different channels and tactics and deliver recommendations for optimization. The summary-level data that feeds a marketing mix model may include counts of individuals who were exposed to and/or took action upon various marketing initiatives; the particular date, time or location from which a marketing message was viewed; as well as exogenous factors, such as economic, seasonal and competitive data that have an impact on performance, such as interest rates, the weather, new product launches, etc.
The number of user ID’s associated with a marketer’s touchpoint data that also match a set of user ID’s associated with another data provider (such as a cross-device data provider), divided by the total number of user ID’s associated with the marketer’s touchpoint data. Match rate is expressed as a percentage.
The primary mechanism for measuring ad clicks/impressions to be used for attributing a subsequent conversion to the appropriate advertising partner. Advertising partners link their ads to a measurement URL such that user-generated ad clicks get logged by a measurement platform for downstream attribution.
Agency responsible for purchasing commercial airtime on behalf of advertisers; they also often provide support to the advertisers for planning, optimisation and control of the performances.
Media planning/buying specialist dependent on a creative agency with common ownership.
Media planning/buying specialist on behalf of creative agencies under separate ownership.
Media Market Maker
This is a new form of independent media agency/media trading desk that may or may not use its client’s money to buy media and audience data and charges a transparent cost-plus fee. A media market maker may use its own capital to buy media at its own risk seeking to resell this media to a buyer for a profit. With sufficient volume of transactions, a media market maker can be successful on thinner profit margins than most other market participants. The effect of this risk-bearing role is to significantly narrow the spread between what the advertiser pays for a given result and what publishers receive for delivering the ad opportunity. Moreover, the market making role of a media market maker ensures the likelihood of higher fill rates and eCPMs for publishers.
The distribution of time and money allocated among TV, radio, print, Internet and outdoor advertising that makes up the advertising campaign.
General term for companies or organisations that own TV stations. In TAM research, it is used more broadly to include TV stations, TV airtime sales houses, programming organisations, trade associations or other parties belonging to the television sector.
Media Trading Desk
A media trading desk is typically a service-based organization that provides a managed service layer overlaying or interfacing to one or a number of demand-side platforms (DSP) or trading platforms. Through the trading desk, the marketer or its representative media agency can programmatically obtain audience-based, bid-based, and guaranteed ad inventory.
Mobile marketing is a term that encompasses any promotional activity that takes place on smartphones and other handheld devices including tablets and other cell/mobile phones. The aim of mobile marketing is to reach an audience of mobile users through various methods such as mobile-optimized ads, push notifications and mobile applications.
The process of verifying the accuracy of attribution measurement and the optimization recommendations it delivers by comparing the predicted results with the actual results.
Data modeling is a process used to define and analyze data requirements needed to support the business processes within the scope of corresponding information systems in organizations. Therefore, the process of data modeling involves professional data modelers working closely with business stakeholders, as well as potential users of the information system.
Location-based data that represents the anonymous offline movement and visitation patterns of consumers.
One of the geographies available from IRI, it stands for “Multi Outlet” and is usually pronounced “moo-loh.” It includes the following channels: Food/Grocery, Drug, Mass Merchandisers, Walmart, Club Stores (BJs and Sam’s), Dollar Stores (Dollar General, Family Dollar, Fred’s Dollar), Military DECA (commissaries).
Multi-touch attribution, also known as multi-channel attribution, is a way of determining the value of every touch point on the way to a conversion.
Rather than giving all the credit to the first point of contact a user has with an advert (first touch) or the final point of contact (last touch), multi-touch attribution gives credit to every advertising channel a user interacts with on the way to a conversion.
Numeric Distribution is the number of stores selling the clients product/Total Number of stores In the geographic region
A database fact/measure that you should not sum over time or market or product is often called “non-additive”. This is a common database term, not specific to CPG data. Dollar and unit sales are both additive. By contrast, distribution and price are non-additive. For example, if one upc has 30% distribution and another upc also has 30% distribution, the distribution of the two items combined is not necessarily 60%. For some non-additive measures (like price), you can calculate an summation correctly by summing the numerator (dollars) and dividing by the sum of the denominator (units). But for some non-additive measures (like distribution), you don’t have the information you need to do the aggregation. You would need to know what was happening at the store level to get it right.
Includes channels like broadcast TV, radio, print, out-of-home, in-store displays, etc., where marketing messages are delivered to individuals who cannot be identified at a user-level.
Price paid by shoppers only in stores where the product is not on sale. Calculated as Non-Promoted $ / Non-Promoted Units (or Non-Promoted Volume). We do not recommend using this, but Base Price instead.
Amount sold in stores with no merchandising present that week. Major use is when quantifying trade costs. For other analyses, Base Sales will probably be the better measure to use.
General term for advertising on the Internet. The three main forms constitute search, classified and display.
Organic installs are any install of an app that’s not attributed to a specific install source. This means that any install which can’t be tracked from performance marketing or advertising sources is considered to be organic.
In real terms, organic installs are called as such when a user installs an app without directly responding to a mobile advertising campaign. While a user who sees an advert and interacts with it, later installing an app, would be considered a non-organic install, anyone who is not directly driven into an app by advertising is defined as organic.
Out of home viewing
All viewing that takes place outside the home (e.g. viewing at a friend’s house or at a public venue, such as in pubs, clubs, hotels or work places). Out of home viewing may be particularly important for some broadcasters, e.g. niche satellite channels.
Advertising that floats over webpage content, graphics or videos. Overlays cannot be blocked by ad-blocking software. One kind of overlay is called a lightbox. These ads begin as a standard, scalable ad unit. If a user engages by hovering over the ad for some set amount of time (often two seconds), the ad expands (to as much as near full-page), while the page behind it dims, increasing emphasis on the ad. Advertisers pay for the number of times the ad is expanded.
All the communication assets that a marketer creates and has control over without having to make per-unit investments in order to expose them to consumers. Examples include a brand’s website, blog, mobile website, etc.
All of the advertising assets for which a marketer pays in order to expose them to consumers. Examples include TV commercials, print ads, online display ads, paid search, retargeting, etc.
The placement of ads within search engine results.
Mini-pay or premium subscription channels/services offered to basic cable subscribers for an additional fee (e.g. HBO). Term mainly used in North America.
Pay per Click (PPC)
Pricing model where advertisers pay vendors or publishers based on the number of clicks received in a campaign.
Pay to basic ratio
Ratio of the number of premium TV service subscriptions (which may be more than one in any given household), to the total number of basic cable TV subscriptions.
Broadband payment method where the customer pays for the bandwidth consumed.
Form of PPV where the user pays for a video or audio download to the PC.
Pricing model in which advertisers pay according to the number of ad impressions.
Pricing model in which advertisers pay an agreed charge for each sales lead generated.
Pricing model in which advertisers pay an agreed charge for each sales transaction generated directly by their advertising.
(1) General term for all subscription TV and on-demand TV services. (2) Pay-TV is often used to refer more specifically to premium pay-TV channels such as Canal+, HBO, Premiere or Telepiu. In many countries (e.g. Benelux, German-speaking or Nordic countries, Canada, USA, etc.) where basic cable services are treated as a semi-public or near semi-public utility the term “pay” is usually reserved for mini-pay and premium pay TV services.
Penetration is a panel data measure. It is the % of households that have purchased a product, or shopped in a certain channel or retailer. Higher is better and 100% penetration is as good as it gets. In Nielsen the fact is called Item Penetration (for specific categories/brand/products) or Shopper Penetration (for channels/retailers). In IRI the fact is % Households Buying.
The process of combining various, disparate IDs associated with a single consumer (e.g. cookie ID, device ID and offline ID) into a single, anonymous unique identifier for the purpose of understanding consumer attributes and behaviors within the context of marketing performance measurement.
Percent Change (% Chg)
Performance marketing refers to marketing techniques and campaigns by which the advertiser pays only for results. Performance marketing is an important part of digital marketing due to the tracking capabilities of the Internet. This can be measured by:
– Cost per action or CPA ( any action agreed by publisher and advertiser)
– Cost per sale or CPS (flat fee or sales commission)
– Cost per lead (often based on filled webforms)
– Cost per click
Performance pricing model (Internet)
Pricing model for online advertising, where the client pays a fee according to agreed performance criteria, such as percentage of online revenues.
Personally Identifiable Information (PII)
Any data that can be used to identify a specific individual. Most marketers prefer to use non-PII data in order to protect consumer privacy.
A transparent gif file or clear image placed within websites, ads and emails to track digital activity (e.g. impressions, website visits, etc.) at a user level. A pixel may also be referred to as a tag.
Pixel-Based Attribution Data Collection
The process of collecting digital user activity using pixels for the purposes of multi-touch attribution.
Point Change (Pt Chg)
Similar to Absolute Change, often used for measures that are already expressed as a %. For example, when comparing 10.3% to 15.6%, the point change would be 5.3 points.
Point of Diminishing Returns
The point at which increased investment in a particular piece of marketing or media results in a decrease in the overall return (assuming all variables remain fixed). For example, the point of diminishing returns for a PPC campaign occurs when increasing the budget results in a decline in conversion rates and an increase in cost per acquisition.
PPC (Pay per Click)
A type of advertising campaign in which advertisers pay publishers a commission for each ad click.
Price per EQ
Price paid by shoppers per equivalized unit (pounds, ounces, or whatever weight measure is used in your category). Best to use when comparing prices of products of different sizes. See Equivalized Sales.
Price per Package
Price paid by shoppers per package that they buy. Used primarily when comparing prices of products of the same size though might violate this rule for a specific analysis (e.g. comparing Price per Package across sizes to estimate average price gaps between large size and small size).
Private Ad Exchange
A private ad exchange is an ad exchange through which a publisher can directly auction and sell its ad inventory retaining more control over bid selection, setting dynamic reserves, and limiting potential buyers including by invitation only auctions. A private ad exchange is an auction marketplace that a publisher can exclusively sell some or its entire ad inventory combined with its own proprietary data sets to obtain better bids and therefore improve revenues and yield using programmatic media channels.
Programmatic marketing is a fully formed idea that programmatic media buying best practices and technology originally developed for computerized buying of online display advertising can be applied beyond display advertising or even beyond paid media to embrace all digital marketing activities. Programmatic marketing is about data and algorithmically driven targeting and campaign management being applied in an integrated fashion across all paid, earned, and owned digital and screen based marketing activity.
Programmatic Media Buying
An automated method of buying media which ensures that advertisers are reaching the right person, at the right time, in the right place. The ads are bought based on a set of parameters pre-defined by the company placing the ads. Programmatic advertising uses data to make decisions about which ads to buy in real time, which improves efficiencies and increases the effectiveness of the ads. (See also, Ad Exchange.)
Price paid by shoppers when a product is on sale. This is available for any of the different merchandising conditions and should be looked at that way. Any Promo Price blends together the price for Feature, Display, Feature & Display and TPR Only (Temporary Price Reduction Only) so is not that useful.
Promoted Product Group
A Promoted Product Group (sometimes abbreviated as PPG) is a set of UPCs that are priced and promoted together. This usually contains items of the same or similar size. When analyzing trade promotions, it is usually most helpful to look at incremental volume at the PPG level, not at the individual UPC level.
Amount sold in stores which had some type of merchandising at any point during the week. Major uses: 1) see how highly promoted a category/segment/brand is and 2) to quantify trade costs or calculate merchandising efficiency. Otherwise, not used often since different stores are in there week to week.
A media vendor that owns or manages media inventory, such as ad space, made available for purchase by marketers.
Purchase Frequency is a panel data measure. It is the number of times your average buying household purchases your product over a whole time period (usually a year). Purchase Frequency remains the same regardless of which sales measure is used (dollars, units or EQ volume). In Nielsen the fact is called Item Trips per Item Buyer. In IRI the fact is Product Trips per Buyer.
If annual purchase frequency for Brand X is 4.2, it means that each household who bought Brand X, on average, bought it 4.2 times over the course of the year.
Sales = (Total # of Households x Penetration) x Buying Rate
Buying Rate = Purchase Frequency x Purchase Size
The total attributed units sold divided by impressions delivered divided by the campaign’s average purchase rate.
Purchase Size is a panel data measure. It is the average amount of product purchased by one buying household on a single shopping trip. Purchase Size can be calculated in dollars, units, or EQ volume. In Nielsen the fact is called Item Sales per Item Trip. In IRI the fact is Sales per Trip.
If annual purchase size for Brand X is 1.1 units, it means that Brand X buyers purchased an average of 1.1 units each time they bought Brand X during that year.
If the average price for Brand X is $3.00, purchase size can also be expressed as $3.30.
Sales = (Total # of Households x Penetration) x Buying Rate
Buying Rate = Purchase Frequency x Purchase Size
Re-engagement is the practice of serving ads to people after who have shown interest without converting. These ads can appear across the web or within apps, keeping brands in front of bounced visitors, with a view to bring them back, and ultimately convert. Re-engagement is very commonly used by retail, travel and other e-commerce verticals, as it is one of the most effective ways to re-engage users and minimize the effect of shopping cart abandonment.
The number of unique users who can be reached by advertising.
Real-time bidding (also known as RTB) is a subcategory of programmatic buying. It refers to the practice of buying and selling ads in real time, on a per-impression basis, in an instant auction. This is usually facilitated by an SSP (supply-side platform) or an ad exchange.
Reattribution is the attribution of a re-install or opening event to a user who hasn’t used an app in a while, but who’s returned due to a retargeting campaign.
Often, users leave an app for good, either by uninstalling or by not returning. These users often make good targets for re-engagement campaigns, and reattribution is the term to describe those who install or re-open once more. Reattribution allows app marketers to see what campaign or creative caused a user to return.
Remaining Market (ROM)
Each retailer trading area offered by Nielsen/IRI also has a “remaining market”. The remaining market represents that retailer’s competition in that geographic region. This remaining market is important for benchmarking.
To create the remaining market for a retailer, IRI and Nielsen include all competitive stores physically located within the boundaries of that retailer’s trading area. Nielsen calls the retailer’s competitive market the ROM (short for “Rest of Market”). IRI calls it the CRMA (short for “Competitive Retailer Market Area”). The ROM/CRMA gives you a single comparison point for each retailer, a weighted average of all the competitors.
Retargeting, also known as remarketing, is the strategy of directly advertising to users who have shown interest in a product, application, or other conversion, but who have in some way lapsed from completing the conversion or retaining interest.
For an example, a user may have expressed interest in a product, or has either installed or already used an app, but at some stage may have stopped either purchasing or using the app. Retargeting goes after those users with specific offers and promotional tactics to interest users with something new, in order to persuade them to fulfill the purchase or use the application again.
A subjective multi-touch attribution methodology that distributes credit for a success metrics across one or more marketing touchpoints using a prior defined or arbitrarily assigned weight. Examples of rules-based attribution models include first click, last click, u-shaped and even weighted methods.
Run of site (ROS)
Refers to scheduling ads across an entire site rather than within a specific section or sub-section. Run of site ads are typically sold at lower rates than targeted ads.
Sales per $MM ACV (“Sales per Million”)
Measures how fast a product is moving in the stores where it is in distribution. Use when comparing across markets, when comparing products with different distribution levels. Used most often by Sales (in item ranking reports). Calculated by dividing some measure of sales (e.g. Units or Dollars) by the market’s All Commodity Volume in millions.
Sales per Point of Distribution (SPPD)
Measures how fast a product is moving in the stores where it is in distribution. Use only within a market, when comparing products with different distribution levels. Used most often by Sales (in item ranking reports). Calculated by dividing some measure of sales (e.g. Units or Dollars) by some measure of distribution (e.g. % ACV Distribution).
The use of predictive analytics to forecast future performance and produce customized marketing and media plans containing the optimal mix of channels and tactics needed to maximize marketing return while also accounting for constraints.
Consumer data that is shared between trusted marketing partners. Examples include “intent to purchase” data that is shared between an airline and a hotel chain or “online shopping” data that is shared between a retailer and a manufacturer.
A piece of code placed on a website or an ad by which user-level data is collected. A tag may also be referred to as a pixel.
Widely used acronym for Television Audience Measurement.
Core TV audience which an advertiser is aiming to reach; typically specified in terms of sex, age, socio-economic grade and housewife/main shopper categories. In many countries, airtime prices are negotiated with respect to specified target audiences.
Targeting is the process through which an advertiser identifies users that they would like to reach and then advertises to them through various channels.
By constructing the right user persona, understanding user habits and finding the platforms to reach them, an advertiser uses targeting to improve the performance of their campaigns.
Predefined, hierarchical classifications and naming conventions of touchpoint dimensions, KPIs and other brand-specific categorizations. Taxonomies differ across marketing organizations and ensure that the analyses, insights and recommendations map directly to a brand’s unique jargon and business goals.
Temporary Price Reduction (TPR)
Retail merchandising condition executed by retailers and measured using the retailer’s POS system. A TPR is a temporary price cut of at least 5% from the regular price. In both IRI and Nielsen data, after 7 weeks, the TPR price becomes the new regular price.
Consumer data that is collected by an external source from the marketer that intends to use it.
One of three cross-device mapping approaches. It may also be referred to as “third-party authentication” because this approach uses a third-party common login across devices (e.g. Google, Facebook, Twitter, etc.).
One of three cross-device mapping approaches. It may also be referred to as “third-party inferred match” because this approach requires partnering with a cross-device technology vendor to make an inferred match across multiple devices to a single user. The connection is made using consumer behavior, relationship-based patterns, Wi-Fi linking, geo-clustering, as well as other variables.
A rules-based attribution model in which the percentage of success metric credit gradually builds while leading up to the last touchpoint in the consumer journey.
Total Distribution Points (TDP)
Most comprehensive measure of distribution, accounting for both the %ACV Distribution (reach) and Average # of Items Carried (depth, sometimes abbreviated as AIC). TDP is often available right on your database but it can be calculated for a brand (or category) by summing the %ACV Distribution of the individual items that make up the brand (or category).
Any media or marketing interaction to which a consumer is exposed. Touchpoints can include a wide range of interactions, from seeing a television commercial to conducting online price comparisons on a comparison shopping engine site, to clicking on a display ad or search result.
When a manufacturer pays a retailer to execute specific in-store tactics in order to sell more product. This is often the largest part of many brands’ budgets.
Trading Area (TA)
Both Nielsen and IRI construct retail geographies in consultation with individual retailers. Nielsen calls these geographic areas Trading Areas (TAs). IRI calls them Retailer Marketing Areas (RMAs).
Generally refers to buyer-side platforms, most commonly within or working for advertising agencies.
The process that places advertisements within media inventory.
Tribal Knowledge Factors
Any internal knowledge that lies within a company and may impact marketing effectiveness. Examples may include mergers and acquisitions, pricing changes, product launches, etc.
A rules-based attribution model in which the majority of success metric credit is assigned to the first and last touchpoint experienced by a user, and the remaining credit is distributed evenly to the touchpoints in between.
Unique Identifier/Unique ID
The mapping of multiple, disparate, anonymous user IDs associated with a unique user to a single, anonymous user ID that identifies the unique user across platforms, channels and devices.
A unique visitor is a statistic describing a unit of traffic to a web site, counting each visitor only once during the reporting period. Common ways in which a website tracks unique visitors include site registration and placing a cookie on the visitor’s computer.
Physical volume of product sold at retail expressed in packages. This is the unit that the shopper buys in the store. Use when comparing products of the same size. Most often used by Operations, also in pricing analyses.
How fast a product moves, controlling for differences in distribution. Common measures of velocity are Sales Per Point of Distribution(SPPD) and Sales per Million.
Used to measure a consumer’s behavior after they’ve been served an ad. If the view through window is set to 90 days, the consumer’s relevant actions within that time period can be attributed to the ad.
View-through attribution, also known as impression tracking, is the name we use for showing that an impression has led to an eventual install. Sometimes there’s a gap between when a user spots an ad (such as a banner) and when they install an app. Traditionally this would mean that you wouldn’t be able to understand if your ads have been effective in convincing a user to install. With view-through attribution, you can show which impressions may lead to installs.
A marketing strategy in which consumers are encouraged to pass along messages to others in order to generate additional exposure. Video clips and advergames are commonly spread via viral marketing through email and social networking sites.
One of the geographies available from Nielsen, it stands for “eXtended All Outlet Combined.” It includes the following channels: Food/Grocery, Drug, Mass Merchandisers, Walmart, Club Stores (BJ’s and Sam’s), Dollar Stores (Dollar General, Family Dollar, Fred’s Dollar), Military DECA (commissaries).
XLerate is Excel based software used by IRI for analysis and reporting. XLerate provided database access through Microsoft Excel. Comparable to Nielsen NITRO software. XLerate is an older application; many IRI clients are now using a new web-based application called Market Advantage.
The percentage of clicks vs. impressions on an ad within a specific page.
A line that plots the maximum number of theoretical “what-if?” marketing and media spend scenarios available to a marketer based on historical marketing performance data for purposes of forecasting marketing performance.