Digital advertising might feel like stepping into a foreign land that has its language. From DSPs and SSPs to RTB and CPM, new marketing professionals can often find themselves at a crossroads with the jargon. But beneath this technical lingo lies the foundation of how ads are bought, sold, and optimised in today’s digital-first world. For those just entering the field, mastering this vocabulary isn’t just helpful—it’s essential.
What is a Demand-Side Platform?
A DSP is a platform that enables advertisers to buy digital ad inventory automatically. Instead of negotiating deals manually, advertisers use DSPs to run programmatic campaigns, targeting specific audiences efficiently while optimising costs. For instance, a marketer launching an ad for sports shoes might use a DSP to target fitness enthusiasts across multiple platforms in real time.
Supply-Side Platform: The publisher’s ally
While DSPs serve advertisers, SSPs cater to publishers, helping them manage and sell their ad space. An SSP connects publishers with multiple buyers, often via ad exchanges, to maximise competition and revenue. For example, a news website may use an SSP to sell its banner ad slots to the highest bidder.
Ad exchanges: The digital market
Ad exchanges are the hubs where DSPs and SSPs meet. These platforms facilitate the buying and selling ad inventory in real-time, functioning much like stock exchanges but for ad impressions. Google Ad Exchange is a prominent example, connecting advertisers and publishers on a massive scale.
Programmatic advertising: Automation in action
Programmatic advertising automates the process of buying and selling ads, replacing traditional negotiations. It includes real-time bidding (RTB), where impressions are auctioned as they become available. This automation allows for highly targeted and cost-effective campaigns, saving time for both advertisers and publishers.
CPM, CPC, and CPA: Payment models
Ad pricing models determine how advertisers are charged for running campaigns, and the three most common ones are CPM, CPC, and CPA. Cost Per Mille charges advertisers for every thousand impressions of their ad. This model works well for campaigns focused on brand awareness, where the primary goal is to maximise exposure rather than immediate action. Cost Per Click requires advertisers to pay only when a user clicks on their ad. It’s a performance-driven model ideal for driving traffic to a website or landing page. Cost Per Acquisition ties payment to specific user actions, such as completing a purchase or signing up for a newsletter. This model is highly ROI-focused and often used for conversions.
Viewability metrics
Viewability ensures users see ads. An ad is considered ‘viewable’ if at least 50% of it is visible on a user’s screen for at least one second (or two seconds for video ads). This metric prevents advertisers from paying for ads that no one notices.
What is a Data Management Platform?
DMPs collect and organise third-party data from various sources to help advertisers understand and target audiences. For example, a retailer might use a DMP to segment audiences based on shopping behaviour and deliver tailored ads.
Customer Data Platform: A first-party focus
Unlike DMPs, CDPs focus on first-party data, which is information collected directly from customers. CDPs unify data from websites, emails, and apps into a single customer profile. This helps brands personalise interactions and stay compliant with privacy regulations.
Ad Fraud: The archnemesis
Ad fraud is a deceptive practice that drains advertisers’ budgets by generating fake impressions, clicks, or conversions without real user engagement. Some of the common methods include bot traffic, where automated systems mimic user behaviour, and domain spoofing, where low-quality websites disguise themselves as premium inventory. This not only inflates costs but also skews performance metrics, making it harder for advertisers to gauge success. Combating ad fraud requires advanced detection tools and collaboration with trusted platforms to ensure campaigns reach genuine audiences effectively.
Conversion Rate Optimisation
CRO is the practice of improving the percentage of users who complete a desired action, such as signing up for a newsletter, making a purchase, or filling out a form. It involves analysing user behaviour, testing variations of web pages or ads, and refining elements like calls-to-action, layouts, and content. CRO is essential for maximising ROI by ensuring that more visitors take meaningful steps toward a campaign’s goals, turning traffic into measurable results without increasing ad spend.
Adtech might sound like alphabet soup, but once you’ve cracked the code, it’s a recipe for advertising success. Understanding these terms isn’t just jargon mastery—it’s your ticket to running smarter, more impactful campaigns for your customers.