Glossary

ARPU, SSP, CPC... what do they all mean?

Ad Blockers: Software that prevents advertisements from being displayed on a user's device. Ad blockers can significantly reduce ad revenue for publishers.
Ad Exchange: A digital marketplace that enables advertisers and publishers to buy and sell ad inventory, often through real-time auctions. Ad exchanges connect multiple ad networks and facilitate programmatic advertising.
Ad Network: A company that connects advertisers to publishers that want to host advertisements. Ad networks aggregate ad inventory from publishers and match it with advertiser demand.
Ad Request: The request made to an ad server to display an advertisement. The request doesn't always result in an ad displayed, for a variety of reasons, including mobile network latency.
Ad Server: Technology used for managing, serving, and tracking ads. Ad servers decide which ads to show and collect data on ad performance.
ARPU (Average Revenue Per User): The average revenue generated per user over a specific time period. Calculated by the formula REVENUE / NUMBER OF USERS.
ASO (App Store Optimization): The process of optimizing a mobile app to rank higher in an app store's search results. ASO focuses on keywords, descriptions, icons, and reviews.
CPA (Cost Per Action): A pricing model where the advertiser pays for a specific action (e.g., install, registration, purchase) taken by the user after interacting with an ad.
CPC (Cost Per Click): A pricing model where the advertiser pays each time a user clicks on their ad.
CPI (Cost Per Install): A pricing model where the advertiser pays each time their app is installed as a result of an ad.
CPM (Cost Per Mille): The cost an advertiser pays for 1,000 ad impressions.
CTR (Click-Through Rate): The ratio of number of clicks per ad to the number of total impressions, as a percentage rate. Calculated by the formula (CLICKS / IMPRESSIONS) * 100.
DAU (Daily Active Users): The number of unique users of the application, per day.
DMP (Data Management Platform): A centralized platform for collecting, organizing, and activating large sets of data from various sources. DMPs help advertisers and publishers make data-driven decisions for targeting.
DSP (Demand-Side Platform): A system that allows buyers of digital advertising to manage multiple ad exchange and data exchange accounts through one interface. DSPs enable advertisers to buy impressions across a range of publisher sites, targeted to specific users based on information such as their location and browsing behavior.
Dynamic Pricefloor: A mechanism that automatically adjusts the minimum price for ad impressions based on historical data and demand. Dynamic pricefloors help maximize revenue by setting optimal minimum bids for each impression.
eCPM (Effective Cost Per Mille): The effective earning for every 1,000 impressions. Calculated by the formula (REVENUE / IMPRESSIONS) * 1000. eCPM is used to compare the performance of different ad networks and campaigns regardless of their pricing model.
Fillrate: The percent rate at which ads are received in response to ad requests. Calculated by the formula (FILLS / REQUESTS) * 100. A higher fill rate means more ad requests are being fulfilled with actual ads.
Frequency Capping: Limiting the number of times a specific ad is shown to a single user within a given time period. This prevents ad fatigue and improves user experience.
Impression: When an ad is shown, regardless of whether it is viewed or clicked.
Inventory: The total amount of ad space a publisher has available for sale to advertisers.
Latency: The delay between an ad request being made and the ad being displayed to the user. High latency can negatively impact user experience and ad performance.
MAU (Monthly Active Users): The number of unique users of the application over a 30-day period.
Mediation: A layer of technology that sends ad requests to multiple ad networks to ensure publishers can sell their inventory to the highest bidder. Mediation platforms like Appodeal optimize ad revenue by managing multiple ad network integrations.
Native Ads: Ads that match the look, feel, and function of the app or media format in which they appear. Native ads are designed to blend in with the surrounding content for a less intrusive user experience.
Offer Wall: An ad unit within a mobile app that presents users with a list of offers or tasks they can complete in exchange for in-app rewards or virtual currency.
Programmatic Advertising: The automated buying and selling of digital advertising, as opposed to the traditional process of manual negotiations and insertion orders.
RTB (Real-Time Bidding): An auction-based system where ad impressions are bought and sold in real-time as a web page or app loads. Each impression is auctioned off individually to the highest bidder.
SDK (Software Development Kit): A set of tools and libraries provided to developers to integrate specific functionality into their apps. Appodeal's SDK enables ad mediation within mobile apps.
Second Price Auction Model: An auction model where the winning bidder pays the second-highest bid price plus a small increment, rather than their own bid. This encourages bidders to bid their true value.
SSP (Supply-Side Platform): A technology platform that enables publishers to manage, sell, and optimize their available ad inventory. SSPs connect publishers to multiple ad exchanges and DSPs.
Viewability: A metric that measures whether an ad was actually visible to the user. An ad is typically considered viewable if at least 50% of its pixels are in the viewable area of the screen for at least one second (two seconds for video).
Yield Optimization: The process of maximizing the revenue generated from ad inventory. Yield optimization involves strategies such as setting pricefloors, managing demand sources, and using mediation to increase eCPM.