MadTech Glossary – August ’23
The MadTech (Marketing and Advertising Tech) world is ever-booming. With every second gone, millions are using its applications, and thousands are being introduced to it. To understand this world, one needs to be aware of the various terminologies, and since Oxford hasn’t stepped up, we have taken it upon ourselves.
The MadTech Glossary is comprised of the vocabulary to know better the many wheels of marketing and advertising tech. Read and learn about ten terms every month to pioneer a deep understanding of essential MadTech concepts.
1. In-Product Messaging (IPM)
In-Product Messaging, sometimes called In-app messaging, is a form of communication where the brand-consumer interaction occurs within the product platforms like websites, apps, portals, and so on. Brands can leverage their own media to shoot the communication and relay important information or updates to active users.
2. Ad Latency
As evident by its name, ad latency is the time taken from requesting an ad to showing it to the end-user or visitor. Higher ad latency can potentially hamper the CPMs and conversion rates.
3. Banner Blindness
Running too many ads on your website might get you that extra buck, but it can also lead to banner or ad blindness. It is a phenomenon that occurs when the user is bombarded with numerous ads on the page, and they ignore them (knowingly or unknowingly).
4. Real-Time Bidding (RTB)
Real-time bidding (RTB) in advertising is an automated auction process that takes place in milliseconds when a user visits a website or app. Advertisers bid for ad impressions based on user data and targeting criteria through DSPs (Demand-Side Platforms), and the highest bidder’s ad is displayed to the user on the slots of a webpage or any other digital platform. It allows advertisers to optimize their campaigns in real-time and deliver relevant ads to specific audiences.
5. Ad Waterfalls
Ad waterfalls, also known as ad tags waterfalls or waterfalling, refer to a sequential method of serving advertisements on a website or app. It involves organizing multiple ad networks or demand sources in a prioritized list. When an ad request is made, the system attempts to fill the impression with the first ad network in the list. If it fails, the request passes to the next network until an ad is successfully served or all networks are exhausted.
6. Header Bidding
Header bidding is an advanced programmatic advertising technique that allows publishers to offer their ad inventory to multiple ad exchanges simultaneously before making a call to their primary ad server. This real-time auction-like process helps maximize revenue by attracting bids from multiple demand sources and ensuring the highest-paying ad is displayed to the audience.
7. Average Customer Value (ACV)
Average Customer Value (ACV) refers to the average monetary worth a customer generates for a business. It accounts for the total revenue, including repeat purchases and additional services or products they have purchased over time. ACV is a crucial metric used by marketers to assess the profitability of acquiring and retaining customers through marketing campaigns like PPC.
8. Digital Experiment Platform (DXP)
A digital experiment platform (DXP) is a comprehensive and technology-driven system that allows advertisers to design, execute, and analyze experiments and campaigns in a controlled and data-driven environment. DXP facilitates testing various advertising strategies, creatives, audience segments, and channels to optimize performance and make data-backed decisions for effective digital advertising campaigns.
9. Internet of Things (IoT)
The Internet of Things (IoT) refers to the network of physical objects or “things” embedded with sensors, software, and connectivity that enables them to collect and exchange data over the Internet. These interconnected devices can communicate with each other, as well as with centralized systems, to facilitate automation, data analysis, and decision-making, ultimately leading to enhanced efficiency, convenience, and smart functionality in various domains such as home automation, healthcare, transportation, and industrial applications.
10. Integration Platform as a Service (iPaaS)
Integration Platform as a Service (iPaaS) is a cloud-based platform that facilitates the integration of various applications and data sources across an organization. It enables seamless connectivity and communication between disparate systems, allowing for smooth data exchange and automation of workflows without the need for extensive coding or hardware infrastructure. iPaaS streamlines business processes and accelerates digital transformation efforts.