Skip to main content

ARPU, SSP, CPC... what do they all mean?

Ilya Borisov avatar
Written by Ilya Borisov
Updated over a week ago

Ad Blockers: A program that will remove different kinds of advertising from a Web browser or mobile device which can prevent ads from being displayed. 

Ad Exchange: A marketplace that automates the ad buying process for both the advertiser and the publishers. There are many different types of exchanges and they operate under various models. Prices for the inventory are determined through bidding

Ad Network: Ad Network is a company that connects advertisers to publishers that want to host advertisements.

Ad Request: The request made to an ad server to display an advertisement. The request doesn’t always result in an ad displayed for a variety of reasons, including mobile network latency.

Ad Server: The back end technology which places advertisements and tracks interactions between users and the advertisements, such as clicks, views or impressions.

ARPU (Average Revenue per User): A measure of how much income an app generates, given the size of its customer base. Is determined by taking the total revenue generated from all users and dividing it by the total number of subscribers. This number can be compared with the cost per install to determine if user acquisition campaigns are profitable.

ASO (App Store Optimization): The process of improving the visibility of a mobile app in an app store 

CPA (Cost per Action): Advertising model where the marketer pays for a specific user action, such as account registration, social sharing, purchase, or a reservation instead of paying for installs, views or clicks. 

CPC (Cost per Click): Advertising model where the marketer pays each time a consumer clicks on the ad they’ve been shown, regardless of what the consumer does once they’ve opened the link. 

CPI (Cost per Install):  The cost required for a marketer to generate an app install each time a consumer clicks on an ad, goes to the app store, and installs the app on their device

CPM (Cost per Thousand): The price of 1,000 advertisement impressions

CTR (Click-Through Rate): The percentage of consumers that click on an ad out of the total number of consumers that the ad is showed. It is especially important to monitor CTRs to establish whether is effective or not

DAU (Daily Active User): The number of active users of an app on a given day

DMP (Data Management Platform): A platform used to collect unstructured audience data from analytical tools, CRM, point of sale data, social, advertising or any other available sources

DSP (Demand Side Platform): A platform that automates media buying across multiple sources to purchase display ad inventory via RTB exchanges

Dynamic Pricefloor: The practice of publishers dynamically changing the price of their inventory in step with market demand

eCPM (effective Cost per Mille): The outcome of a calculation of the ad revenue generated by an ad, divided by the number of impressions of that ad expressed in units of 1,000

Fillrate: The percentage of ad requests that are filled with ads

Frequency Capping: The practice of managing the number of times a user views a specific ad creative

Impression: When an ad is shown regardless is viewed or clicked

Inventory: The estimated total amount of ad space a publisher has available to sell to an advertiser. Ad inventory is often calculated by the month and typically reported by the number of impressions.

Latency: The length of time between a page loading and the ads appearing on that page

MAU (Monthly Active Users): The number of active users of an app on a given month

Mediation: Is technology that sends ad requests to multiple ad networks to ensure publishers find the most relevant and highest paying demand for their ad supply

Native Ads: Online content that it is created for paid promotion of a brand on a media site which doesn’t use a traditional ad format such as a banner ad, but the ad unit looks like a piece of content from a specific publisher. It generally is labeled as “sponsored content” and the ad experience follows the natural form and function of the user experience in which it is placed.

Offer Wall: An offer wall in a mobile app is a list of incentives which a user can receive by performing a specific action, typically downloading another app, watching a video ad, or sharing content on social media. Incentives are often in-app rewards such as digital currency or additional unlocked app content. 

Programmatic Advertising: Is the algorithmic purchase and sale of advertising space in real time.

RTB (Real Time Bidding): Refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a webpage to load. Those auctions are often facilitated by ad exchanges or supply-side platforms

SDK (Software Development Kit): Is a set of software development tools that help developers create new software. SDKs provide developers with libraries and tools to create, modify, improve or configure the software.  Typically an SDK includes one or more APIs, programming tools, and documentation.

Second Price Auction Model: An auction in which the bidder who submitted the highest bid is awarded but pays a price equal to the second highest amount bid.

SSP (Supply Side Platform): Is a technology platform to enable publishers to manage their advertising space inventory, fill it with ads, and receive revenue. It’s basically the publisher equivalent of a DSP. Where DSPs are used by marketers to buy ad impressions from exchanges as cheaply and as efficiently as possible, SSPs are designed by publishers to do the opposite: to maximize the prices their impressions sell at. Similar technology powers both SSPs and DSPs.

Viewability: A metric for ad placements that are actually seen by a users rather than just loaded into an app.

Yield Optimization: The process a publisher goes through using data analysis and optimization techniques to optimize their demand partners and maximize ROI from the inventory being sold. 

Did this answer your question?