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Performance Marketing Terms

Whether you are just starting out in performance marketing or have a few campaigns under your belt, it is important to understand the elements of it so you can define a digital marketing strategy that works for your business.

To help you keep it sorted and make it easier for you; we created a performance marketing dictionary!

Now you can familiarize yourself with these key terms and improve your understanding of the digital marketing world and identify the best strategies within your organization.

Whether You Are A Marketer or a Junior UA Manager – Always Start With The Terms.

UA (User Acquisition): Process through which new users are acquired for an app business through marketing-driven activity. There are three main types of UA activity; paid media, organic, and ASO.usage can be less frequent, and bounce rates are higher. On the other hand, app use is a daily habit, meaning that apps do not require the same level of engagement as other forms of media such as television or newspapers. Users spend more time in the apps they use, which means ads not only reach an already invested audience but also need to communicate with it. 

Advertisers: In mobile advertising, the advertiser is the person or entity that focuses on revenue-generating, and guides the ad placement so it delivers the right message to the audience at the right time.

Affiliate Network: agency that takes ad campaigns (offers) from advertisers or app developers and promotes them among its publishers.

Publisher: The source of inventory (traffic). They develop and publish apps on the App Store, and their main goal is to monetize their app, which is often used to reach the ad base. Publishers are an important component of advertising ecosystems.

Click: Click on the ad by a user.

Impression: Ad view by a user.

Cap: Numerical limit for the offer. Can be related to the maximum amount of sales, clicks, impressions, installs, budget. It can be applied on a daily basis, monthly basis, or during the whole period, depending on the advertisers’ need.

Postback: A tracking method to record and pass the conversion details from two servers. Allows both the advertiser and publisher to see the conversions.

CPA: Cost per action. Advertisement payment model in which payment is based only on events or actions such as purchases, deposits, and so forth.

CPI: Cost per install. Advertisement payment model in which payment is based only on installs made by users.

CPC: Cost per click. Payment model in which payment is based only on clicks on the ad or given link.

CPM: Cost per mille / 1,000 impressions of an ad.

CR (Conversion Rate): The percentage of users who took the desired action. 

CTR (Click-through rate): The percentage of users that saw and clicked on an ad or a button. 

Open Exchange: A digital marketplace where advertisers can offer ad campaigns to multiple publishers.

Incent Traffic: type of traffic where users are offered an incentive (a reward; prizes, money, etc) in order to perform an action such as: install an app, watch an ad, play a game, etc. The CR conversion in this type of traffic will be much higher. 

Interstitial ad: an advertisement that loads between two content pages. 

App Monetization: Strategy that the developers employ to generate revenue from the app.

Attribution: Mobile attribution is the process of combining different events (e.g., install, in-app events, etc). Attribution tries to explain what happens when a user interacts with an ad, and relies on a timely correlation between events and the user, taking into account other factors that could lead to a conversion, such as age, gender, location, and other variables.

Last-Touch Attribution: Clicks generated by the latest platform – are taken into account in this model. When a user converts an ad they clicked on, the DSP that generated the last click for that user is credited with the conversion event. If a user clicks on an ad several times or on another DSP several times, only the last click counts.

Mobile Measurement Partner (MMP): Attribution partners provide data collected by the platform as well as data from other sources. This data allows advertisers to determine which sources should be attributed to their paid campaigns and to understand the effectiveness of marketing efforts.

Deep Link: used to direct the users directly to an app, instead of a website or the store. Deep Links are useful as they land the users on the exact conversion point, and provides a smoother and more personalized experience that leads to monetization opportunities and greater engagement.

Demand-Side Platform: A platform that enables advertisers to acquire ad inventory through programmatic ad-networks. The real-time bidding (RTB) process is performed when a user’s device loads a page in the app. This powerful technology allows advertisers to automate the posting of ads based on the location and behavior of users.

Key Performance Indicator(KPI): To track the performance of a campaign, advertisers use key metrics and data points, but the type of performance indicator depends on the objective nature of the campaign. Commonly used KPIs include ROAS, CPA, RR,  among many others.

ROAS: Return on Advertising Spend. Made up of revenue divided by the cost of the campaign. Tracking these metrics allows advertisers to evaluate and optimize the success of their campaigns.

Lifetime Value (LTV):  Helps identify the most valuable user segments and thus make informed decisions about their campaign investments. It’s the turnover and profit margin that a company expects over the duration of its relationship with a user. This key figure is used to calculate the value for the average user and is a central part of the company’s marketing strategy.

RR: Retention Rate. The percentage of customers who continue using an app over a given timeframe (week, month, quarter). This is a critical success metric for advertisers. 

ARPU: Average Revenue Per User. The revenue generated (on average) by each user using the app. The calculation is the total revenue generated during a specific time period (week, month, quarter) divided by the number of active users during the same period. 

Session Length: the amount of time from when a user launches the app until they stop using or exit it.

DAU / MAU: Daily active users (DAU) and Monthly active users (MAU). Their ratio measures the stickiness of the app (how often people engage with it). DAU is the number of unique users who engage with it in one day, and MAU is the number of unique users over a 30-day window.

General Data Protection Regulation(GDPR): Designed to protect and define how data from companies in all industries are treated, including programmatic advertising. It also concerns the transfer of personal data within the EU and the EEA, giving users more control over how organizations store and use their data.

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