Ad Format Guide · Updated 2026

Glossary: Key Advertising Terms You Should Know

Every ads dashboard on this page throws the same core vocabulary at you. Here's what it actually means, in plain language.

CPC — Cost Per Click
What you pay each time someone clicks your ad, regardless of what they do afterward. The default pricing model for Search ads.
CPM — Cost Per Mille
What you pay per 1,000 impressions (views), regardless of clicks. Standard for awareness-focused Display and Video buys.
CPA — Cost Per Acquisition
What you pay, on average, for each completed conversion (sale, signup, lead) — the metric that actually determines whether a campaign is profitable.
CPV — Cost Per View
What you pay for each qualifying video view (usually 30 seconds, or the full ad if shorter) — YouTube's default pricing for skippable in-stream ads.
ROAS — Return on Ad Spend
Revenue generated for every dollar spent on ads. A ROAS of 4 means $4 in revenue for every $1 spent — the single most-watched e-commerce ad metric.
CTR — Click-Through Rate
The percentage of people who saw your ad and clicked it. A key signal of creative and targeting relevance, and a direct input into Google's Quality Score.
RTB — Real-Time Bidding
The automated auction process that decides, in milliseconds, who wins each individual ad impression as a page loads.
DSP — Demand-Side Platform
The software advertisers (or their agencies) use to buy programmatic ad inventory across many publishers and exchanges at once.
SSP — Supply-Side Platform
The software publishers use to sell their ad inventory into programmatic auctions, the mirror image of a DSP on the sell side.
DMP — Data Management Platform
A system that collects, organizes and segments audience data, used to build the targeting lists DSPs then act on.
Header Bidding
A technique letting multiple ad exchanges bid on a publisher's inventory simultaneously, rather than one at a time — raises competition, and typically prices, on that inventory.
Frequency Cap
A limit on how many times the same person can be shown a specific ad within a given time window, protecting against ad fatigue and wasted spend.
Viewability
Whether an ad was actually visible on-screen (per IAB standards, typically 50% of pixels for 1+ second) — not just technically loaded on the page.
Attribution
The method used to decide which ad (or ads, across a multi-touch journey) gets credit for a resulting conversion.
First-Party Data
Data a business collects directly from its own customers and users — increasingly the backbone of targeting as third-party cookies fade out.
Lookalike / Similar Audience
A new audience a platform builds automatically by finding people who resemble an existing customer list you've uploaded.
Retargeting vs. Remarketing
Largely interchangeable in casual use — both mean showing ads to people who already interacted with your brand — though "remarketing" more often refers specifically to email re-engagement.
A/B Testing
Running two (or more) versions of an ad simultaneously to a similar audience, to measure which one actually performs better before scaling spend behind it.
Creative Fatigue
The performance decline that sets in once an audience has seen the same ad creative too many times — the reason fresh creative matters as much as good targeting.
Ad Fraud
Invalid traffic — bots, click farms, stacked/hidden ads — engineered to generate fake impressions or clicks and drain ad budgets without reaching real people.

Other ad formats

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