What Are Common Digital Advertising Terms? (Glossary)

Here’s a glossary of terms just for you. Let’s review some of the most commonly used terminology in digital advertising so nothing comes as a surprise.

• CPM (Cost Per Mille) – Cost per 1,000 impressions.
• CPC (Cost Per Click) – Cost paid each time an ad is clicked.
• CPA (Cost Per Action) – Cost paid for a specific action (e.g., purchase).
• CTR (Click-Through Rate) – Percentage of clicks out of total impressions.
• DSP (Demand-Side Platform) – Platform for buying digital ad inventory programmatically.
• SSP (Supply-Side Platform) – Platform for publishers to sell ad space.
• O&O (Owned & Operated) – Content properties that a company directly controls.
• Impressions – Count of times an ad is displayed.
• Clicks – Count of user interactions with an ad by clicking.
• Conversions – Desired actions taken by users, such as purchases.
• Conversion Rate – Percentage of users who complete a desired action.
• ROAS (Return on Ad Spend) – Revenue gained per dollar spent on ads.
• PPC (Pay-Per-Click) – Advertising model charging per ad click.
• Retargeting – Targeting users who previously interacted with an ad.
• Reach – Total number of unique users who see an ad.
• Frequency – Average number of times each user sees an ad.
• Ad Inventory – Available ad space on websites or apps.
• Programmatic Advertising – Automated ad buying using software.
• Affinity Audiences – Groups of users with shared interests, targeted for brand awareness.
• Intent Audiences – Users actively researching or intending to purchase a product, ideal for conversion-focused ads.
• Geo-Targeting – Showing ads to users in specific locations.