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Industry Insights 2
A Guide to Advertising Industry Terms, Part 1: Acronyms


The advertising industry can often feel like a maze of acronyms, leaving you scratching your head. Understanding these terms, however, is key to effectively managing your advertising campaigns and making the most of your efforts. In this edition of Industry Insights, we'll dive into some common advertising industry acronyms and decode their meanings, so you can navigate this dynamic landscape with ease and confidence.


CPM stands for Cost Per Mille, which translates to "cost per thousand" in Latin. It refers to the cost an advertiser incurs for placing an ad a thousand times. CPM is expressed as a dollar amount per 1000 ad placements. This metric allows advertisers to calculate their expenses based on the number of impressions their ads receive.


CTR stands for Click-Through Rate and is also known as the click rate. It measures the ratio of ad clicks to the total number of ad impressions. CTR provides insights into the effectiveness of your ads by indicating how many people clicked on them compared to the number of times they were shown. It is calculated by dividing the total number of clicks by the total number of impressions.


DSP stands for Demand-Side Platform. These technology platforms are used by advertisers and agencies to purchase and manage digital ad inventory across multiple ad exchanges and publishers. DSPs streamline the ad buying process and offer advanced targeting options to reach specific audiences effectively.


SSP stands for Supply-Side Platform. Publishers and media companies use SSPs to manage and sell their digital advertising inventory to advertisers through ad exchanges and DSPs. SSPs provide publishers with control over their ad placements and help optimize revenue by connecting them with potential advertisers.


IAB stands for the Interactive Advertising Bureau. It is an industry association that sets standards and guidelines for online advertising and digital marketing. The IAB plays a crucial role in shaping the advertising landscape by promoting best practices and facilitating industry collaboration.


EDAA stands for the European Interactive Digital Advertising Alliance. As a self-regulatory initiative in Europe, the EDAA focuses on promoting transparency and user choice in online behavioral advertising. Through certifications, the EDAA ensures that advertisers adhere to ethical practices and respect user privacy.

Gaining a solid understanding of industry acronyms is paramount for successfully navigating the complex world of digital advertising. The good news is, if you’ve ever used iPromote’s platform, then you already have seen these concepts in action! iPromote’s platform automates the creation of IAB compliant ads, buys and manages digital ad inventory, and provides comprehensive analytics including CPMs and CTRs. These valuable capabilities empower advertisers to achieve impactful results and increase focus on their internal business functions. Stay tuned for Part 2 of our guide, where we will continue to explore essential advertising industry terms to further enhance your knowledge and expertise in this field.