We develop AI & ML algorithms that re-define what real user acquisition and performance marketing are.

contacts

Derech Menachem Begin 144, Tel Aviv, Israel

Beginner’s Luck? Media Buying Lexicon

Digital Marketing, and performance marketing within, are filled with acronyms; CPA, CPI, CPS, GDPR, and it might get confusing. And within all of it, the world of media buying is even more so. DSP? SSP? CPM? These ones are confusing. This article will explain not only the technical term but also what do they do. It’s important to understand that all of these terms are connected. As together they allow media buyers to buy or sell their ad impressions, and this whole process happens in real-time (if not, how would you see ads when you scroll your favorite tech blog?).

Let’s start from the beginning, Media Buying and Media Planning are two different things, although their work completes each other. Media Planning is focused on identifying an audience, researching the market, deciding on a budget, and building the goals. It’s also the part that decides on which channel to purchase ad spaces from. Media Buying is the stage that comes after the media plan is established, and it involves purchasing ad spaces and time to run your ads. It also involves monitoring performance and adjusting your strategy as needed to fit the campaign’s performance. Your goal as a media buyer, and well – the whole purpose of media buying, is to deliver your message to your target audience. 

social-media-5187243_1280

Ad Creatives: check our guide here about creatives types. In general, this is what your target audience will see, it’s the image or video you create in order to catch their attention.

SSP – Supply Side Platform: a technology that enables web or app owners to manage their ad spaces inventory and maximize their monetization. It gathers many forms of campaigns (demand) for publishers. Put it simply, SSP offers ad impressions for sale to many ad exchanges and DSPs directly. The customer, in this case, is the web/app owner.

Ad Exchange: a big pool of ad impressions where publishers put their available ad spaces hoping someone will buy them. This is similar to SSP. 

Ad Network: companies that connect advertisers (apps) with publishers (websites/apps) that want to promote their ads. They vary based on transparency regarding where the ads will run, and on whether the advertiser is looking to reach a specific audience, or formats (mobile, or video). 

DSP – Demand Side Platform: a platform that allows advertisers to buy ad spaces from different publishers. DSP helps marketers and advertising agencies to choose the right inventory, and also allows the advertisers to deliver and track their ads for the purpose of optimization. The customer, in this case, is the advertiser.

RTB – Real-Time Bidding: what makes DSP and SSP operate. It’s a process in which ad inventory is sold instantly, this is done through programmatic advertising. The auctions sell the ad inventory to marketers willing to pay the highest price. 

DMP – Data Management Platform: connecting you with the data you’ve collected, both offline and online for the benefit of the analysis, retargeting, and segmentation. This is very important, as it can help you optimize and target your customers at the right moment. 

Identify and purchase ad spaces on channels that are relevant to your target audience at the best time, and for cheap.

CPM: cost per 1,000 impressions. This is the rate you’d pay for impressions; this can vary depending on GEOs you’re targeting, DSPs, and so on. 

CTR – Click-through Rate: the ratio of users who click on a specific link to the number of total users who view an ad. It is used to measure the success of an advertising campaign. 

VTA – View-through Attribution: also known as impression tracking, is the name used for showing that an impression has led to an install. This helps to understand if a specific creative has been effective in convincing a user to install your app, and can show which impressions may lead to installs. 

Manual Bidding: bidding on ad space and managing directly through an ad platform.

Programmatic Buys: automatic bidding on ad spaces that matches your consumer’s profile (by setting targeting). 

Direct Buys: negotiating ad rates and run times with a specific publisher.

We hope this lexicon will help you in your adventure of discovering media buying. And remember, media buying terms and media buy technology keeps updating and developing with the years. Whether you are a media buyer in your position, or whether you are an app developer or a marketer in general – it’s important to keep track and follow all the technological advances and trends in this field, as they in some ways dictate and affect the whole fennel of digital marketing. 

Pros And Cons Of Performance Marketing

Marketing is an important way to increase the reach of your business. Among all its types, performance marketing has become very popular in recent years. Performance Marketing’s origins are a bit in the dark, however, most believe it traces back to affiliate marketing, and to a specific stream there – “smart marketing”, or “pay on results” model, that made fortunes for affiliates back in the 2000s. 

Originating from this, performance marketing is a type of advertising where the publisher is paid when a particular goal is completed. It has a payment method based on the results. This type of marketing is an alternative to the traditional marketing channels such as SMS and email marketing.

To help you create an effective digital marketing campaign, we will look at the pros and cons of performance marketing as a whole. But, before we dive into the detail we should first explore what performance marketing is.

Performance Marketing Definition:

Performance marketing is a digital marketing strategy that focuses solely on the performance of a marketing campaign and its results. It is driving performance and rewarding on completed consumer action. Simply put, it is paid advertising. Performance marketing lets the marketer decide the desired goals and pays the digital advertising platform only after the said goals are completed. It is similar to paid ads in the sense that it pays for the completed actions. 

One of the important metrics or factors in Performance marketing is the evaluation of spend vs return (or revenue vs cost). Compared to affiliate marketing – everything is quantified, and especially the success of the activity. Performance marketing campaigns must be measurable, optimized in real-time, and payment is based on a defined action.

website-3374825_1920
The Pros of Performance marketing:

Maybe the biggest advantage of performance marketing is that it eliminates the need to invest in advertising campaigns and other advertisement methods with unknown results (such as offline marketing), and the simple measurement of the ROI ( return on investment), adds immense value to your business and can be a great strategy for measuring the campaign success.

Moreover, it increases your advertising reach and adds value and creativity to your advertising. It is proven to be effective because it speeds up the advertising process – in a few days, and your ad can appear anywhere online, in any vertical, and on any app or website. 

You can work either alone or in collaboration with other digital advertising platforms such as Google, Facebook, Twitter, etc. It is cheaper to register in an agency to take care of your marketing than to build your own team and operation. 

The Cons of Performance Marketing: 

But not everything is peachy; one of the biggest cons of performance marketing isn’t an inherent issue – but more of external; and its fraud in different shapes and forms – from bots to SDK spoofing and fake events. In a place where there is money, there will be people who try to find a quick way to gain it. Companies and marketers join together in trying to annihilate this major obstacle. 

Another issue is data misinterpretation. It can create unrealistic financial predictions, and the lack of proper research can put you in a worse position.

 Some companies in the field require a prepayment, which means you would pay on results before you know they’re effective, rather than paying afterward – which might cause issues, if you’re not reading the data correctly or if you’re paying for fraud. That is why a lot of companies do not agree to a prepayment.

Performance Marketing is measurable, quantified, optimized in real time and payment is based on a defined goal.

Final thought: 

Despite the disadvantages, performance marketing remains one of the best and cheapest ways to promote your service, app, or product online. It can provide a decent way to make money both to the marketer and the affiliate or agency. 

The most important thing to remember or do before starting with performance marketing is research. Research the market, and the affiliates. Marketers should analyze the market and choose what medium will prove best for their business. With the research and the implementation of security and anti-fraud tools, you can enjoy the benefits of affiliate marketing/performance marketing with no worries.

Performance Marketing Terms

On the other hand, organizations have the need for integrating in IT departments new technologies often using cloud services and other ways of direct access to the web. This pressure for IT departments to give…

In-App VS Mobile Web Ads

According to BroadandSearch, mobile traffic has increased by 222% in the last 7 years, and so one of the big questions that keep marketers and UA managers awake at night is “In-app advertising versus mobile web advertising – which is the better investment?”. Here, we’ll try to elaborate on the internal battle of the mobile device, fought between mobile apps and mobile web.

Mobile Apps Pros:

Users’ attention –
Mobile apps became the space where users focus their attention on when using their phones. They spend most of their mobile device time in apps. According to eMarketer apps account for 90% og internet time on smartphones and 77% of internet time on tablets. For brands wanting to reach consumers on mobile, apps seems to be the safe bet, especially with the conversion rates that have grown a lot during COVID19, when 49% of people open an app 11+ times a day (according to DCI’s article).  However, if you are to go for a mobile app advertisement – your ads will need to not only catch the users’ attention but also communicate with it.

Better experience –
No one likes advertisements, it seems that in-app ads are a bit more tolerable than others. Apps seems to be a space where advertisers has the ability to create a better ad experience for users. 
App developers, and mobile app networks, have designed and developed ad formats that are suited to mobile apps, many designed to integrate perfectly into the UX of an app. The user experience is kept unharmed, to the point where users don’t even notice there are ads, making them more likely to engage with the ad (Check our article about Mobile app ads here to learn more about the different formats).

Mobile Apps Cons:

The queen bees –
While users are indeed spending 90% of their time on mobile apps, that time is mostly concentrated on a few top apps. That means that if brands want to take advantage of the in-app advertising opportunity, they will have to allocate a huge portion of their budgets to the dominant companies (Facebook, Instagram, etc).

Less incentive – 
The amount of time a user spends on an app is usually long and focused on the app’s purpose (whether it’s a game or food delivery), this might cause that users will have less incentive to pay attention to ads, and click on them.

responsive-2044932_1280

Mobile Web Pros:

Diversity – 
While users spend less time browsing the mobile web than they interact with apps, there are a lot more websites than apps, and many publishers with desirable audiences don’t have apps or their mobile webs are more used. Therefore, using mobile web ads – a brand can reach more diversity across a wider range of properties. 

Cross-Platform
Brands can reach audiences on the mobile web using standard ad formats, and responsive design that automatically adjusts to each device’s display capabilities. This makes it easier for them to create ad creatives that display properly on both desktop and mobile devices. 

Mobile Web Cons:

Ad Blockers –
Mobile Adblock usage is growing and taking its toll on advertisers, as a large part of their audience pool cannot be reached. Juniper Research pointed out that due to that publishers could lose nearly 10% of the digital ad spend due to ad blockers.

Hard to track user behavior –
Mobile webs aren’t as interwoven with users’ devices, and so advertisers and publishers can’t leverage all of the data that mobile apps can gather. This means there might be big opportunities to connect with users that your brand might miss. 

Final Thoughts

On one hand, on mobile web browser usage is less frequent and the bounce rates are higher which makes users keener to click on an ad. On the other hand, app usage is a daily habit, meaning they do not require the same level of engagement as other forms of media (such as TV, or Newspapers), and the chances a user will encounter an ad is much higher. 

So to wrap it up nicely; which one is better? It depends. Given the time users are using mobile apps, it’s hard to ignore the existence of this advertisement format. At the same time, one cannot forget the mobile web – which has more diversity and an ad ecosystem that is more integrated with the broader digital ad ecosystem. 

At the end of the day, every brand and advertiser is unique and with different goals. To some mobile apps ads will perform better, and for others – mobile web. And in many cases, marketers decide they need both mobile web and mobile app advertisement as if done correctly – both can be a strategic and valuable choice. 

All About Mobile App Ad Types

On the other hand, organizations have the need for integrating in IT departments new technologies often using cloud services and other ways of direct access to the web. This pressure for IT departments to give…

Close Bitnami banner
Bitnami