Monetization Dictionary

The MonetizePros Dictionary contains definitions of terms commonly used in the process of website monetization. Included in this glossary is a basic definition of each term, along with an explanation of how it relates to the monetization process.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Above the Fold: This term refers to the portion of a web page that is viewable when the page is initially loaded. In other words, above the fold content is visible on a freshly loaded page without scrolling. This term originally applied to newspapers, which feature a physical fold dividing the top half of the page from the bottom half.

Affiliate Marketing: An arrangement under which website operators and publishers are paid when they refer a customer to a third party merchant and that customer ultimately completes a purchase or other action. Under affiliate marketing relationships, merchants effectively give a portion of the proceeds they generate from sales to the referral source (which is often a referring website). As such, affiliate marketing compensation is performance-based in that publishers or affiliates are only paid if they are able to generate new customers for their partner.Affiliate marketing relationships may exist directly between a merchant and affiliate, or a network (such as Commission Junction) may match up these two parties.

Banner Blindness: The tendency of website visitors to ignore or otherwise block out banner advertisements. Banner blindness occurs when a website is laid out in such a way that it is easy for visitors to view a page without seeing or digesting the banner advertisements. Obviously, banner blindness can become an issue from a monetization perspective if it prevents visitors from responding to (i.e., clicking on) banner ads.

Bonus Media: Free ad impressions or other inventory given to an advertiser to increase the overall value of a campaign. Often times, ad salespeople will include some free impressions on a campaign in order to increase the appeal of the proposal to the advertiser or agency. For example, a proposal may include 100,000 impressions in a specified ad unit (e.g., the bottom leaderboard) as bonus media.Bonus media is generally most applicable in CPM-based campaigns; it is essentially impressions included in a proposal at a price of $0 CPM. Bonus media does not necessarily have to take the form of display advertising; it can be in other mediums as well. For example, sponsorship of a mobile app (e.g., iPhone app) may be included as bonus media.

Branding: A type of advertising campaign in which the primary objective is to raise brand awareness, as opposed to generating a direct response from the target audience. Ad campaigns can be generally categorized as either 1) direct response, in which the advertiser is attempting to get a specific action from an audience (e.g., opening a credit card account) or 2) branding, in which the goal is to generally raise awareness of the brand and make visitors aware of the company’s products and services.When submitting a proposal for a campaign, it’s important to know which type of campaign the advertiser is looking to complete, and tailor your proposal accordingly. Branding campaigns may be better suited to broad-based placements, whereas direct response may require more targeted positioning.

Campaign: An initiative by an advertiser to promote their products / services. Each advertising campaign features a specific objective, a set length of time, and generally a budget. Many advertisers run multiple campaigns throughout the course of the year; for example, a store may run a “Back to School” campaign in Augusts that features creative geared at parents and runs on websites that tend to attract young parents. That same company may later run a Valentine’s day campaign targeting married men and featuring an entirely different set of creative.The length of a campaign can vary quite a bit; some advertisers plan the entire year at one time, while others will have campaigns that last for a couple weeks or even a single day. In reaching out to potential advertisers, it may be useful to specify which types of campaigns you think could be a good fit for your property (eg, “if you are looking to run another campaign promoting the new 2014 Mustang, our site could be a great fit”).Campaigns are generally classified as either branding or direct response.

CAN-SPAM: A law that governs the use of email addresses collected on websites or otherwise.

Click Fraud: A form of fraud that involves clicking display ads on a website in bad faith, often in exchange for some form of monetary compensation. Click fraud involves clicking ads on your own website or paying other third parties to click on ads on your behalf. Because many display ads are served on a CPC or cost-per-click basis, there is a direct correlation between the number of times an ad on your site is clicked and the the amount of revenue you make. As such, there can be a temptation among website owners to maximize their revenue by maximizing clicks on your ads.Click fraud is now easily detectable by Google and other ad networks, and punishment for implementing click fraud schemes can be severe. If caught engaging in click fraud, expect to be banned from your ad network.

CPA: Cost per action. An advertising pricing model in which the advertiser pays the publisher each time a specified action is completed. This action may be the completion of an online form, submission of an email address, or purchase of a good or service.Under a CPA model, the publisher bears all risk since they will only be paid if a specific action is completed (ie, the advertiser does not pay anything until a specified goal is accomplished). Under alternative pricing models such as CPC or CPM the advertiser pays a publisher each time a click or impression is recorded, respectively.

CPM: Cost per thousand. CPM refers to a common method for pricing display advertising, in which the advertiser pays a predetermined flat fee for every 1,000 impressions served. For example, is a publisher sold 1,000,000 impressions of a specified ad unit at a $5 CPM, they would generate $5,000 in total revenue.CPM pricing is very common within many niches. CPM differs from CPC or cost-per-click advertising where the advertiser pays for each click on their banner ads. As such, CPM shifts more of the risk to the advertiser, resulting in more predictable and stable cash flow for the publisher.

CPC: Cost per click. Display ads are often sold on a CPC or cost-per-click basis, meaning that the advertiser will pay a predetermined amount for each click received on their ads. For example, if an advertiser agrees to pay $5 per click and their ads receive 1,000 clicks over the course of a month, they would pay $5,000. CPC arrangements are an alternative to CPM or cost-per-thousand, in which revenue is generated based on the number of ad impressions shown, regardless of the number of clicks.CPC may also refer to a manner in which advertisers and agencies evaluate the effectiveness or relative effectiveness of a campaign. In other words, they will calculate the cost (amount they are paying) for each click their ads receive on your site (and other sites).

Co-Registration: The process of registering your visitors / subscribers for third party offerings, often by passing their email address to providers of services for which they opt-in. As visitors are registering for one of your products (e.g., an email newsletter), you can simultaneously present them with offers to also sign up for similar products from third parties. Under typical arrangements, you will be compensated for each “lead” you provide to the third party partners (again, the lead may consist of only an email address, or may include additional information such as name and phone number).Co-registration may involve creating an additional page to which visitors are directed after completing a sign-up for your newsletter, which includes offers to sign up for more products / services (note that these are often free offers). Co-registration arrangements can be set up directly with third parties or through networks that work to match up “buyers” and “sellers” of this information.

Coupon: A discount offered to users who wish to subscribe to a premium product. For example, a coupon code may allow a user to subscribe to a product that is usually $99 per month for only $79. Coupons are generally activated by entering a code at the checkout screen.Coupons seem cheesy, but they flat out work. If you have a list of free members or newsletter subscribers, you may be surprised at the conversion rates you’ll see if you offer them access to your premium products at a discounted rate. Many sites that sell premium subscriptions generate a significant amount of total revenue from users utilizing a coupon code. The amount of the coupon code and method / frequency of offering it is up to you, and obviously depends on the site. But don’t be afraid to experiment with offering coupons regularly; some sites will run “sales” featuring a coupon code multiple times a month.

Creative: Images or other visual advertisements. Creative simply refers to the advertisement that is actually displayed on a web site; it’s what the visitor sees when they load the page. Creative generally comes as an image (JPG or GIF file) or as a third party code that translates into an image file when entered into an ad serving program.So if a media buyer tells you that they are hoping to get creative to you tomorrow, that means that they hope to send over the ads (either as Flash or image files or as third party tags) the next day.

CTR: Click-thru-rate. The percentage of viewers of a display ad who click on the ad and are directed to the advertiser’s landing page. If 1,000 impressions of a particular ad unit are served to a website’s audience and that ad received 10 clicks, the CTR would be 1.0%.CTR is a commonly-used metric to evaluate the effectiveness and relative effectiveness of a display advertising campaign. In other words, advertisers are probably comparing the CTRs their campaigns experience on your site to other websites on which they are also advertising. The higher the CTR, the more effective the campaign is. In other words, the higher the CTR on a particular ad unit, the more traffic / leads that ad unit is generating for the advertiser (and therefore the more value). CTR is one of the most basic measurements of campaign performance; the effectiveness of a campaign depends on multiple other factors of course (such as how much the advertiser is effectively paying for each click, and how engaged each visitor you refer is).

Demographics: Information about your audience, generally used by media buyers or advertisers to determine if your site is a good fit for their specific campaign. Demographic information can be any statistics about your audience that provides insight into what type of visitors come to your site, including but not limited to age, gender, race, education level, wealth, professional designations, hobbies, or spending habits.Demographics are generally included in a media kit (and are often a significant component of the media kit). There are a number of ways to accumulate demographic information, including surveys or third party monitoring systems such as Quantcast.

Dedicated Email: An email sent to your audience on behalf of a third party, in return for compensations. Think of sending a dedicated email as renting out your email list; you’re allowing a third party to send a message to your audience via email, promoting their product or services within the email. The content of dedicated emails is generally provided by the third party, though you should always insist on the right to edit or deny content based on your discretion (for example, if it’s offensive or “spammy” and could hurt your reputation with your audience).Dedicated emails are usually sold on a CPM or cost per thousand basis. So for example, you could send a third party to your audience of 10,000 subscribers at a $50 CPM, which would generate $500 in revenue.

End Date: The date at which an ad campaign will end (generally at 11:59 PM on that date). The end date is generally one field included on an insertion order (IO) that lays out the specifics of a media buy. On the end date, the campaign stops (hopefully just temporarily) and should have delivered in full.

Frequency Cap: A limit or restriction to the number of times a specific ad may be shown to a visitor during a specified amount of time. Frequency caps are often specified by advertisers who wish to avoid having their ad displayed over and over to the same visitor to a web site. To avoid this, they will limit the number of times an ad can be displayed.A frequency cap generally consists of a frequency (i.e., a number of ad displays) and a time period. So for example, an advertiser may specify a frequency cap of 3x per 24 hours, meaning that their ads may be shown no more than 3 times to a visitor during a 24 hour period.Implementing frequency caps is generally simple and straightforward, and can be done within DFP and other ad serving software programs.

Freemium: A model in which a website offers a significant amount of usability or content for free, but charges a subscription fee for full access. For example, a tool may feature basic functionality that is available to all users but requires a paid subscription to gain access to all the features.There are some major potential benefits to implementing a freemium model; it allows you to attract users to your free content and resources while still generating subscription revenue from those who wish to gain full access to your offering. Alternatively, 100% free content will not generate any subscription revenue while purely paid products will get relatively little traffic (especially search traffic) since it can’t be accessed without a subscription.

Geo-targeting: The process of serving ads, lead generation forms, or other offers exclusively to visitors or individuals in a specific geographic area. Some advertisers will request (and write into contracts) that their ads be served only to a specific region of the world or even a particular state. For example, advertisers whose products or services are not available outside the U.S. will have limited interest in promoting those products and services to individuals in Europe or Asia.It’s fairly simple to geo-target by country or even state using DFP, a commonly-used ad serving software. It’s up to you as to whether or not you want to allow geo-targeting on your site, but be aware that it might make your offerings more appealing to potential advertisers.

Heat Map: A visual illustration of user activity on a webpage, either by eye movement or click activity. A heat map shows what sections of a web page received the most interest from visitors, either in terms of time viewed or clicks received. This information, which can be obtained from services such as Crazy Egg, can be used to determine which “real estate” on a webpage is the most valuable in terms of its ability to attract user attention.

Homepage Takeover: A specific type of campaign where a single advertiser purchases all the inventory, or 100% SOV, on a specified page on a website. In other words, a homepage takeover occurs when an advertiser controls all of the ads on a single page; instead of seeing ads from multiple advertisers, visitors will see multiple ads from the same advertiser.It is not uncommon to price homepage takeovers at a premium to the “rate card” CPMs for the individual ad units (assuming you are selling on a CPM basis). So if your homepage includes 3 ad units each priced at a $5 CPM, you might sell a homepage takeover at an “all-in” CPM of $17 – $20.

IAB Standard: Ad units that are generally considered to be common or standard across online advertising.Due to budget and time restrictions, advertisers will often produce creative in a limited number of sizes. As such, they will often specify on RFPs that proposals should include only IAB standard units. In other words, don’t present any custom sizes or sponsorship opportunities on such a proposal; stick to the “plain vanilla” units that are the most common.

Impression: A single display of an advertisement on a website. Each time a particular ad unit is served on a website to a visitor, an impression is registered. If a page with four ad units is viewed once by a single visitor, four impressions will be registered (one in each unit). If 10 visitors view that page, there will be 40 impressions served, 10 in each of the four ad units.Display ads are often sold on a CPM or cost per thousand basis, meaning that blocks of 1,000 impressions are sold for a flat fee.

IO: Insertion order, or instructions to run display ads or other media on a website. When you receive an insertion order, this represents an agreement between you and a media buyer or advertiser run a campaign at the specific rates indicated on the form. An IO will generally include dates, dimensions of the relevant ad units, number of impressions, and rates (either CPM, CPC, or other). It will also include a place for you to sign to indicate agreement, as well as a place for a counterparty signature.

Lead Scrubbing: The process of determining whether a lead provided under a lead generation or affiliate marketing agreement is valid and merits payment under the relevant agreement. Your partners in co-registration or lead generation initiatives will often engage in lead scrubbing to ensure that the leads you’ve provided to them are valid under the terms of the agreement, and are not supplied to them fraudulently. For example, it is possible that automated systems or robots will submit contact forms or provide email addresses that are passed to your partners. The scrubbing process involves filtering out these “low quality” leads to ensure that your partners only pay for valid leads generated in good faith.Lead scrubbing is a regular occurrence for anyone who operates a website; be sure that you understand the process and rationale for any leads generated but not paid for.

Leaderboard: A display ad unit that is 728 pixels wide and 90 pixels tall. Leaderboard ads often appear at the very top of a web page, and are one of the most commonly used ad units. The 728×90 leaderboard is included in the IAB standard package, along with the 300×250 rectangle and 160×600 skyscraper. Leaderboards are often viewed as a premium ad placement, since it is generally the first ad unit a visitor to a site will see. For better visibility and performance, it’s recommended that the leaderboard be placed not at the immediate top of the page but rather below the logo and perhaps even the nav bar (this ensures that the leaderboard will stay in view as visitors initiate their scroll down the page).728×90 ad units positioned below the fold at the bottom of a site are often referred to as a “footer” instead of a leaderboard.

Link Unit: An ad implementation that consists of a hyperlinked keyword that directs visitors to a landing page filled with relevant ads. Link units are generally smaller ad units (e.g., 468 pixels wide by just 15 pixels high) that can be used in addition to standard display ad sizes. Link units generally work on a CPC basis, meaning that revenue is generated when a visitors clicks through to an advertiser’s site. Because link units don’t actually direct to an advertiser’s page but rather to an intermediate landing page, two clicks are actually required to generate any revenue.Several ad networks, including AdSense and Media.net, offer link units as part of their display advertising packages. While there is an opportunity to generate a significant amount of revenue from link units, many publishers do not use them extensively.

Macros: Snippets of code that are inserted into third party ad tags to ensure that clicks can be tracked and recorded properly and that ads will not be cached. In other words, the ad codes provided by agencies or advertisers must be altered slightly before the ads are pushed live. These adjustments make it possible for the advertiser and website operator to track the number of clicks on a specific ad, and may also prevent an ad from being “cached” or stored on a user’s computer.Many ad serving systems, including DFP, can automatically insert macros into third party ad codes.

Media Kit: A document that presents information about your website that is relevant to potential advertisers, including demographic details (e.g., age, wealth, interests of your audience), opportunities for advertisers to establish a presence on your site, and stories of previous initiatives that have delivered considerable value to advertisers.Think of a media kit as a biography of your website; it should be able to serve as a substitute to an in-person meeting with a potential advertiser in that it will convey all (or almost all) of the information they could want when evaluating the fit of your property for one of their campaigns. A media kit is your opportunity to convey to potential advertisers why they should be advertising on your site: the value of your audience, the unique opportunities you offer, and potentially information about how much your offerings cost (though many media kits make no mention of pricing).The media kit is one of the most important documents you will make in your efforts to monetize your website, especially if you believe you have an opportunity to make a significant amount of money through direct ad sales.

Media.net: One of the largest display ad networks besides AdSense. Media.net is a collaboration of Yahoo! and Bing, two of Google’s biggest search engine rivals (Google operates AdSense, the most popular display ad network). Media.net is generally regarded as an effective display advertising solution, capable of delivering performance for advertisers that is on par with (or even better than) Google’s AdSense.Media.net display advertising solutions focus primarily on link units that direct visitors to a landed page (often a branded one) with a collection of relevant ads. However, in recent years there has been an increased focus on more traditional banner ads. Opening a Media.net account is relatively straightforward; after the online signup process, notification of approval and next steps comes quickly.For more on Media.net, check out our forum thread or ad network reviews.

Net 30: Payment terms specifying that you will be paid 30 days after the completion of the billing period. For example, if a display advertising or lead generation agreement specifies net 30 payment terms, payment is due 30 days after the conclusion of the relevant period. So payment for ads served of leads generated during the month of January would be due 30 days after January 31.Net 30 payment terms are relatively standard, though payment terms can vary considerably based on the industry and client. The longer the term, the longer it will take to get your money (i.e., net 60 terms results in later payments than net 30 terms).

Network: A company that represents multiple websites, selling their display ad inventory, email lists, or leads to third parties interested in purchasing. Networks often bundle the “inventory” from a larger number of sites and sell directly to an advertiser. They then pay their affiliated properties based on the revenue generated by their specific site.Networks are effectively middlemen, matching up sellers of leads and ads (i.e., websites) with buyers (i.e., advertisers). They generally take a portion of total revenue generated for their services. Avoiding networks and selling directly to advertisers or lead buyers can be one of the most substantial ways to increase your total revenue generated from your website.Networks will often insist on exclusivity, meaning that you agree that they will be the sole agent of your ad inventory. For small publishers unable to establish direct ad sales relationships, ad networks represent an easy (though sub-optimal) way to monetize display ad inventory.

Out Clause: The ability of advertisers to terminate a media buy prior to its indicated completion date. For example, a media buy may include a two day out clause, which means that the advertiser can cancel the remainder of the buy to which they committed with only two day’s notice. Some advertisers and agencies will commit to significant spends in order to achieve volume discounts, but will cancel the buy shortly after it begins if the results are not satisfactory.From a publisher perspective, short out clauses are obviously undesirable. It’s up to you to decide whether you wish to allow these in your contracts with advertisers.

Pop-Up: A display that appears over normal website content, often inviting users to complete a specific action. Pop-ups generally appear shortly after a page loads, and often asks users to subscribe to some sort of feature (e.g., newsletter or free trial of a paid product) by submitting email address or other contact / personal information.While most view pop-ups as annoying, the fact is that they often deliver solid results. Implementing a pop-up on your site can dramatically increase the number of emails you capture or free trials your audience starts.There are a number of different pop-up software programs out there, including Pop Up Domination. Most will allow you to customize the appearance, location, and frequency of these placements.

Rate Card: A document that displays the base advertising rates for a website, broken out by ad unit or placement. In other words, a rate card is the menu for potential advertisers; it shows them the prices that they can expect to pay for the ad units and other options that you can offer.It is common practice to complete proposals with rates that are a material discount to the rate card CPM or CPC prices. As such, many websites create rate cards with inflated prices, in anticipation of reducing these rates on actual proposals to give the impression of discount and additional value being delivered to the client.

Remnant: Unsold inventory, generally referring to display ads. Remnant or leftover inventory is often sold at a considerable discount.Some websites will agree to sell any otherwise unsold ad impressions to a partner who is willing to purchase this remnant inventory, often at a significantly discounted price to the rate card. A website may sell its remnant inventory at a discounted rate under the terms of an agreement with a partner.

RFP: Request for proposal. An RFP is sent out by an advertiser or agency to websites whom they are considering for an upcoming campaign. It is an invitation to submit a proposal that will be reviewed by the media buying team.Upon receipt of an RFP, you will be required to assemble and submit a proposal that details how you suggest the advertiser spend a certain amount on your site(s). A completed proposal generally includes considerable detail, including specifics of how the proposed spend breaks down by line item and month. A completed proposal will generally include a spreadsheet, screenshots, and perhaps other supporting information as well.

RPM: Revenue per thousand. RPM refers to the revenue generated from 1,000 views. This is generally stated in the context of revenue generated per 1,000 pageviews of a site. For example, an RPM of $10 means that a site generates $10 in revenue each time 1,000 pages are viewed. Though RPM is most commonly used to describe ad revenue, it can apply to any source of online revenue.RPM is generally similar to CPM, though there can be differences. RPM is used to refer to the revenue generated by publishers, while CPM generally refers to the costs incurred by advertisers. If a network takes a cut of the fees paid by advertisers, the net RPM to the publisher can be considerably lower than the CPM paid by the advertiser (i.e., the publisher RPM and network RPM would add up to the advertiser CPM).

Scalable: With regards to a media proposal, able to be increased or decreased in volume without a change in the pricing terms. Media buyers will often request that submitted proposals are scalable, meaning that the total overall spend and volume can be changed without altering the pricing terms submitted. For example, if a proposal includes 1,000,000 impressions at a $5 CPM, the agency should be able to reduce it to a smaller volume (eg, 500,000 impressions) without an increase in cost. In effect, buyers are asking for volume discounts to remain in effect even if the volume is reduced.Scalable can also refer to upwards expansion, meaning that the overall volume should be able to be increased to a specific level if wanted. For example, a $10,000 proposal would be considered scalable to $20,000 if the overall volume of each line item can be doubled.

Screenshots: Images of banner ads or other media being displayed on a website, either live ads of an advertiser or generic images showing where the placements would appear if approved. Media agencies or advertisers often request screenshots to be submitted along with a proposal, for purposes of illustrating where the proposed placements would appear. Additionally, screenshots will often be requested once a campaign has gone “live” in order to show the advertiser that the advertisements are indeed appearing as they should.There are several plugins to various browsers that make it easy to take a screenshot, save it as an image, and either insert into a PowerPoint file or send directly via email.

Shopping Cart Optimization: The process of improving the rate at which your users make a purchase from your website. This is relevant particularly for ecommerce sites; shopping cart optimization is a process that involves testing and tweaking the process through which users must go through in order to complete a purchase on your site. By making it easier and more straightforward to complete a sale, website owners are often able to improve the percentage of visitors who make a purchase and/or increase the amount of the average sale.

SOV: Share of Voice. This refers to the percentage of the total inventory for a particular ad unit that is dedicated to a certain client or campaign. In other words, SOV indicates how much of the inventory for a unit an advertiser has purchased. For example, if you have a total of 1,000,000 leaderboard (728×90) impressions available for a month and one advertiser purchases 250,000, their SOV would be 25%. If an advertiser purchased all of your inventory, they would havve a 100% SOV.It is common for advertisers or media buyers to ask for SOV to be included on a proposal. It is appropriate to indicate approximate SOV; figures do not need to be exact.

Split Testing: The process of comparing one scenario against an other, generally in the context of a webpage or form. Split testing, also often known as A/B testing, involves comparing the performance of multiple variations of a webpage or form, with the goal of determining which layout delivers optimal performance. Split testing generally involves making relatively small variations on a base version; for example, you may change the color of a “Submit” button, or experiment with adding “verification” buttons to a checkout page.Split testing, or testing in general, is a critical part of the monetization process. Experimenting regularly with various elements of your site increases your likelihood of identifying ideal combinations that lead to the highest payout. Split testing can be used in a number of different ways. For example, you may send your audience two emails that are identical except for the subject line, and determine which version receives a higher open rate.

Synced Creative: Advertisements or other creative that are displayed simultaneously on a webpage. For example, synced creative may include a leaderboard that poses a question and an in content rectangle that provides the answer. This creative is designed to be served simultaneously; it will have its desired effect if both units are served on the same page at the same time.Synced creative is not very common, but may be used by advertisers in branding campaigns.

Test Campaign: An advertising campaign designed to give the client access to your site on a trial basis. Test campaigns often feature below-market pricing, with the understanding that rates for an extended campaign will be considerably more expensive. For example, you may agree to let an advertiser run display ads on your site at a CPM rate that is 50% below what you would normally charge, as a way to give them a low risk opportunity to see how well your property can help them accomplish their objectives.If you’re confident in your site’s ability to deliver value but struggling to get your target advertisers on board, you may want to offer test campaigns in an effort to get them to take a test drive of your property. If the results are good, you will likely get them to commit to a longer term spend.Keep in mind that media buying agencies don’t get paid unless you do, so you may want to steer clear of complete “freebies” if you’re working with an agency (if you’re client direct, it may be more appropriate and effective at getting through).

Uniques: The number of unique visitors or individuals to come to a website, generally over the course of a single month. In other words, each person that visits your website during the course of a month is a unique visitor, or unique. Note that uniques is different from visits; if the same person visits your site ten times over the course of the month, that represents one unique but ten separate visits.Media buyers and advertisers will often ask you to provide the number of uniques for your website; they are simply looking to gauge the size of your audience. This information is readily available from Google Analytics or any other analytics packages.

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