The television advertising world is filled with industry terminology, and it can be difficult to navigate the field when you’re not familiar with the lingo. To communicate effectively with your media partner and understand how these terms impact your campaign, it’s important to know what they mean.
Here is a quick guide to 25 key TV advertising terms you should know.
Advertising Terms Glossary
The determination of which aspect of a campaign is responsible for the outcome you wanted from an advertisement, so that ROI can be calculated. For example, if a campaign includes a TV ad, an email, and a phone call from a salesperson, you want to be able to identify which action ultimately led to the sale.
2. Bounce Rate
The number of customers who leave a website page after viewing it rather than continuing to engage with the brand. A low bounce rate signifies a successful campaign.
3. Competitive Analysis
A strategy for identifying major competitors, their products, sales, and marketing efforts. A competitive analysis helps you improve upon the competition's business strategies.
An action such as making a purchase or signing up for a newsletter that you want your target audience to take. Every time a consumer takes this action, it counts as a conversion.
5. CPM (Cost Per Mille)
Also known as Cost Per Thousand, CPM refers to the cost per thousand views of an ad. It’s used as a standard measure for buying display ads because inventory is sold on a CPM basis.
6. CPP (Cost Per Point)
A cost measurement that is used to compare between types of advertising media. Calculated by dividing media costs by GRP (Gross Rating Point), CPP is the cost of reaching 1% of the targeted population.
7. CTA (Call to Action)
A word or phrase included within an ad that invites the audience to take a certain action. Contact Us and Click Here are calls to action.
8. CTR (Click Through Rate)
A percentage of how often people who are served an ad follow through and click on it. The higher the CTR, the better the ad is performing.
9. Display Ad
A graphic "banner ad" that is embedded specifically on websites that are heavily utilized by the target audience.
Any form of interaction with a brand such as Likes, Clicks, Comments, or Shares.
Refers to how often a consumer is exposed to a message during a specific time period.
12. GRP (Gross Rating Point)
A measure of how many people within the target audience may have encountered your campaign. The percentage of the audience reached multiplied by the number of impressions per audience member is the GRP.
The number of times an ad appears to a consumer, whether or not the consumer actually sees the ad or takes any action.
Words or phrases a brand focuses on to raise search engine results. Also, the words consumers use most often when searching for information about an industry.
15. KPI (Key Performance Indicator)
A measurement quantifying the overall success of an ad campaign.
16. OTT (Over-the-Top Television)
Online streaming services that are delivered via devices, apps, or smart TVs. OTT makes use of video-on-demand platforms such as Hulu, Netflix, and YouTube. Content can be consumed anywhere at any time.
17. Programmatic Media Buying
A digital technology that lets advertisers buy ads that automatically target consumers based on metrics obtained through algorithms.
The total number of people who are exposed to an ad over the course of an entire campaign.
The targeting of a consumer who has previously engaged with your brand or visited your website.
20. ROA (Run of Audience)
Ads that can run across all media platforms.
21. ROI (Return on Investment)
The amount a company makes in return for an advertising spend. ROI is expressed as the benefit divided by the cost of the investment.
The process of dividing a large unit into various smaller components that share related characteristics like similar interests. A market may be segmented by age group, geographic area, occupation, and many other types of divisions.
23. SEM (Search Engine Marketing)
Creating ads that are designed specifically for search engines.
24. SEO (Search Engine Optimization)
Increasing the visibility of a website for search engines.
25. VO (Voice Over)
A voice used in the audio of a commercial.
In the world of television advertising, the jargon can sometimes leave potential advertisers baffled. When you understand these advertising terms, you are in tune with the dynamics of your campaign, you can speak with your media partner confidently, and you can determine the effectiveness of your marketing efforts.