A brand looking to promote or spread the message of their product or service with specific goals in mind, such as user acquisition. Advertisers purchase ad space from mobile publishers, sometimes through intermediaries.
Advertisers use data to quantify their ads’ performance and gauge the ROI(Return on Investment) of their ads in terms of user acquisition and revenue and to optimize their budget.

Ad exchange

A technology platform that enables the buying and selling of media advertising inventory of ad networks. This technology-driven approach generally uses (RTB) to purchase or sell inventory, and prices are determined on an impression-by-impression basis.

Ad Network

Aggregates ad space and supply and matches them with the corresponding demand via auctioning. The ad network act as a liaison between SSPs or DSPs and publishers and helps them scale up and optimize their reach.

Ad monetization:

The concept that you can generate revenue through your app via either ads or in-app purchases by therefore converting traffic into revenue.

ARPPU (Average revenue per paying user):

The revenue a single paying user generates during a specific period. An example of a paid action is subscribing, making in-app purchases, or paying for a download. Using this metric, users who have not paid for anything can be removed from the equation. The calculation formula is total revenue divided by the number of paying users.

ASO (App store optimization):

The process of optimizing mobile apps to rank higher in the app store’s search results to drive more traffic to your app’s page so searchers can perform a specific action such as downloading an app.

ARPI(Average revenue per install)

The total revenue your app generates on average across all installs . The calculation formula is you take the total revenue generated during a period and divide it by the number of installs during the same period.

ARPU (Average revenue per user)

The total revenue your app generates on average across all users . The calculation formula is you take the total revenue generated during a period and divide it by the number of users during the same period.

CPM/CPT (Cost per mile/Cost per thousand):

An advertising payment model that refers to the cost or expense of every 1000 impressions (or views).

CRM (Customer relationship management):

The process of managing interactions with customers from the past as well as current and potential customers. By analyzing a customer’s history and interactions with a company, you can optimize all aspects from customer retention to the ultimate goal of increasing sales growth.

CPI (Cost per Install):

A pricing model or the cost that advertisers pay for each time a user installs the app. This can be calculated only once per user. Basically, the cost of the ad that leads to an app install.

CPC (Cost per click):

A pricing model in which advertisers pay the publisher each time a user clicks on their ad. It is calculated by dividing the cost of a paid advertising campaign by the number of clicks.

Conversion Rate:

The percentage of users who have completed the desired action known as the conversion. The formula for conversion is as follows: you take the number of conversions and divide that by the number of total ad interactions during the same time period (that can be tracked to the conversion).

CPA (Cost per action/acquisition):

A pricing model in which advertisers select a post-install action to measure and only pay if users engage in that action. For this action to be calculated, the user must see the ad, install the app, and perform the action. To calculate CPA, one must divide the advertising cost by the number of times the action occurs. For example, advertisers can provide a survey and once a user completes the survey, this can be calculated as an action.

CTR (Click-through rate):

The ratio of users who click on a specific link, to the number of total users who view an advertisement. It is often used to measure the success of an advertising campaign.

CTA (Call to Action):

A word, phrase, or sentence that encourages the user to perform a specific action. Examples would be “click here”, “buy now”, “download”, “install”, or other creative ways to urge the user to take action. You are essentially motivating the user to act immediately.

CPL (Cost per lead):

A type of mobile advertising that suggests paying DSP’s for each lead that it has generated. The advertisers pay for information about the potential customer and not for the product or service sold. The calculation formula is the budget spent on the campaign divided by the amounts of leads generated.

DSP (Demand- Side Platform):

A supply aggregation platform that helps advertisers buy ad inventory programmatically and manage multiple ad exchange and data exchange accounts through one interface or platform. This allows mobile advertisers to buy high-quality traffic at scale and saves time and resources.


Effective cost per thousand impressions. Total ad revenue generated by 1,000 impressions. It is a metric used to calculate an app developer’s monetization performance or the ad revenue generated by a specific campaign.

FTD (First-time deposit):

This is calculated by dividing the number of unique visitors by the number of first-time app deposits. This metric provides insights on the potential lifetime value of a customer.

DMP (Data management platform):

A software platform that is used for managing and collecting data. This optimizes the advertising budget as it provides insights into the audience, markets, and users.

Header Bidding:

Header bidding is an innovative, programmatic technique where publishers simultaneously offer inventory to multiple ad exchanges before making calls to their ad servers. Multiple demand sources can simultaneously bid on the same ad inventory, which means publishers increase their yield and reap more profits.

IAA (In-app-advertisement):

A monetization strategy in which app developers get paid to serve advertisements within their mobile app, therefore maximizing the revenue through the ads.

IAP (In-app purchases):

Something that you can buy within the app, such as characters, upgraded abilities, or real money in-game currencies.

LTV (Life time value):

A metric that determines how valuable a customer will be to your app over the whole relationship with the app. It tells you how much a user is worth and determines how much you should pay for this user.

MTTI (Mean time to install):

The mean time between click and install.

MAU (Monthly active user):

A user who has opened the app at least once in a particular month. The total number of MAU shows you how many users use the app monthly.

mDAU (Monetized daily active users):

Users who logged in or accessed an app on any given day that the app could show ads.

NOI (Non-organic install):

Downloads that happen as a result of any ad activity, whether it be paid or owned. A non-organic install to encourage a download, such as in a “paid” campaign where users are presented with ads that lead to downloads or in an owned campaign where email, SMS, or QR codes encourage the download.


The publisher has digital real estate on which to display ads. The publisher auctions real estate in real-time through various business models, and the winning bidder gets the ability to show an ad to the end-user.

PMP (Private marketplace):

An invite-only ad auction where publishers offer their ad inventory to a selected group of advertisers. A PMP allows for a more tailor-made experience as it facilitates relationships between publishers and participating advertisers and enables them to be more precise regarding their audience relevancy and inventory.

PQL (Profile Query Language):

Profile Query Language (PQL) is an Experience Data Model (XDM) compliant query language that is designed to support the definition and execution of segmentation queries for real-time customer profile data.

QPS (Queries per second):

The amount of search traffic that a search engine or database receives during one second.


Reattribution refers to the attribution of this reinstall to a specific retargeting campaign therefore a specific traffic source.

Real-Time Bidding:

A server-to-server auction process where advertising inventory is sold on a per-impression occurring in real-time bidding. The IAB has defined a revised standard for this, similar to how financial markets operate. Through a programmatic on-the-spot auction, through addressable advertising (ads reach the consumer directly), they can focus on demographic, psychographic, or behavioral attributes.

ROAS (Return on ad spend):

A marketing method that measures the success of a marketing campaign. The calculation formula is as follows: gross revenue from the ad campaign divided by the ad campaign’s cost.

SSP (Supply-side platform or Sell-side platform):

Advertising technology that enables web publishers and digital out-of-home (DOOH) media owners to manage their advertising space inventory, fill it with ads and receive revenue.

VTA (View-through attribution):

VTA relies on tracking impressions that have led to installations or reinstallation. In some cases, there may be a gap between the first action to install, but with VTA, it is easier to track and provide accurate information.

Win Conversion Rate:

The percentage of sales leads who entered the sales funnel and have now downloaded the app. This is essentially a metric that proves the market fit, pricing, and sales execution and will help identify opportunities to improve the sales cycle. To calculate it, you take the number of installs and divide it by the number of qualified leads. This is the win conversion rate.
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