Mobile Advertising Glossary

by GameHouse

Mobile advertising can be confusing, not only for mobile app developers, but for advertisers, and even mobile ad networks. With this mobile advertising glossary, we will attempt to clarify the most commonly used terms in mobile advertising. If we are missing any, or you would like to see additional definitions please let us know in the comments!

Ad Impression: An advertisement impression transpires each time a consumer is exposed to a mobile advertisement (apart of an SMS message, on the mobile web or web page, or mobile app).

Ad Unit: Any advertising vehicle that can appear in a mobile ad space inside of a mobile application. For example, banner advertising is a common type of mobile ad.

Rich Media Advertising: Advertising unit which responds to user actions by presenting content such as video, animations, text, graphics, games, et al. 

Interstitial Ad: A mobile ad unit that is inserted into the middle of a mobile application, typically during menu screens or other natural breaks for the purposes of promoting 3rd party products or services.

Banner Ad: A mobile ad unit that is a hypertext link with a graphic element displayed within a mobile app, typically at the top or bottom of an app screen.

Video Interstitial: A mobile ad unit that displays a video to the end user from within an application.

Advertiser: An advertiser is a person or organization that purchases space within mobile apps for the purposes of promoting messages, good, or services.

Mobile Application: Software that is downloaded to a mobile device for the purpose of rendering content.

Banner Size: The width and length of a banner image/ad placed within a mobile application or the mobile web.

Click to Call: A service that enables a mobile user to initiative a voice all by clicking on a mobile ad.

eCPM effective Cost Per Mille (thousand): The standard format for describing revenue from advertising. Calculation is (Total Revenue in a Time Period)/(Total Impressions/1,000).

CPC: Cost-per-Click of a mobile ad, (total revenue/total click) = CPC.

ARPU: Average Revenue per User. Typically calculated Daily (DARPU), or Monthly (MARPU). Total Revenue/Active Users = ARPU.

Location Based Advertising: The function of displaying a mobile ad unit based on the physical location (lat/long coordinates) of a mobile user.

Pay-Per Download: An advertiser can purchase mobile ad space from publishers for the purposes of driving downloads of their app.

Click Through Rate: The percentage of impressions that include a “click”, or action performed by the user viewing the advertising impression.

Conversion Rate: With the GameHouse Promotion Network, conversion rate refers to the % of impressions viewed that lead to an install of an application. Conversion rate can also refer to the percentage of clicks that lead to an install of a mobile application.

Targeting: Criteria used to make the delivery of a mobile ad more precise to the user. Typical targeting criteria includes location, age, gender, marital status, household income, et al.

By Ryan Morel

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