Glossary
Explanation of Retail Media Terms
Audience Extension
Audience Extension is a marketing approach that aims to extend the reach of a campaign by targeting people out side of an ecommerce site on search engines or other websites driving traffic back to the ecommerce site or marketplace.
ACOS
ACOS stands for "advertising cost of sale", which is a metric used to measure the efficiency of your advertising campaigns. It is calculated by dividing the total ad spend by the total sales attributed to the ad.
For example, you have spent 15€ on your campaigns and you have made 150€ in sales, your ACoS is 10%. A good ACoS is usually around 8% to 10%.
Click
Click refers to the action of selecting an search result, product listing or advertisement.
Conversion
Conversion is the process of converting website visitors into customersby encouraging them to take a specific action, such as making a purchase.
Conversion rate
The conversion rate is the ratio between the number of conversions you have achieved thanks to your ads and the number of clicks on your ads. It is expressed as a percentage. For example, if you have made 100 clicks which have resulted in 15 conversions, then your conversion rate is 15 / 100 = 15%.
CPC
CPC Advertising stands for Cost Per Click Advertising, which is a type of online advertising where the advertiser pays the publisher or advertiser for each click on their advertisement. It is a popular form of advertising for websites, where the advertiser is charged for each click that leads to a website visit or a sale.
CPM
CPM stands for Cost Per Mille, which is a pricing model used in online advertising. It is calculated by taking the cost of the ad divided by the total number of impressions (also known as mille, meaning thousand in Latin) the ad has received. This model is often used to determine the cost of a digital ad campaign, as it takes into account both the cost of the ad and the number of people who have seen it.
CTR
CTR stands for "click-through rate" and is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. Expressed as a percentage, iIt is used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.
EAN
EAN stands for European Article Number, which is an international barcode standard used to identify products. EANs are 13-digit numerical codes that are typically printed on product packaging as barcodes, which can be scanned to identify the product.
GMV
GMV stands for Gross Merchandise Volume, which is the total sales revenue generated from merchandise sold through a company's platform within a certain period of time. It is used as an indicator of a company's performance and growth.
Impression
An impression is the number of times your ad is displayed on the site.
Keyword
Refers to the keywords you wish to bid on to run a campaign. These are words of your choice describing your product, which help determine when and where your ad is likely to be shown. Keywords are the terms that people search for on the site
on the site and on which you want to put forward your products.
Marketplace
A marketplace is a website on which independent sellers, professionals or individuals, have the opportunity to sell their products online in return for a commission taken by the site on each sale.
Short-tail
Short-tail refers to keywords with higher search volume and less competition, or keywords that are very specific and have a shorter search query. Short-tail keywords are often used for targeting more specific audiences and for testing purposes.
SKU
SKU stands for Stock Keeping Unit and is a unique identifier used to identify a product in a store or catalog. It is usually composed of a combination of letters and numbers and is used to track inventory, orders, and pricing for a product.
Sponsored Product
Sponsored Product is an advertising product that enables vendors and sellers to promote their products on an ecommerce site or marketplace helping them attract more customers and increase sales. Sponsored Products are cost-per-click (CPC) ads that appear in search results, on product detail pages, and on the shopping cart. They are a great way to get your products noticed by customers.
Walled Garden
A 'walled garden' is a closed ecosystem, in which the platform operator (e.g. Amazon, Facebook or Google) controls everything itself. The first-party data they provide allows for valuable closed-loop reporting.
Digital Catalog
Digital Catalog is an online brochure that showcases your products or services allowing retailers to personalize offers to the customer who will then make the final purchase in store or on an ecommerce website..
Digital Display Advertising
Digital display advertising is a form of advertising that uses digital displays, such as websites, mobile applications, social media, and electronic billboards. It is used to reach a wide audience and increase brand awareness. Digital display advertising typically consists of static or animated images, videos, or audio that are used to communicate promotional messages. It is usually interactive, allowing viewers to interact with ads and provide feedback.
Long-tail
Long-tail is a term used to describe a marketing or advertising strategy that focuses on targeting a large number of small, niche markets instead of one large market. This strategy can be used to reach a larger audience and generate more sales. Long-tail strategies involve targeting specific groups of people, such as those interested in specific hobbies or products, with tailored marketing messages.
Product
Refers to the products you sell and feature in your ads also referred to as an SKU (Stock Keeping Unit)
Retail Advertising
Retail advertising is the practice of promoting products through various forms of media, including television, radio, print, and online. Retail advertising is used to create interest and ultimately drive sales. It is often used in conjunction with other marketing tactics, such as direct mail, email campaigns, and coupons. Retail advertising typically involves the use of catchy slogans, attractive visuals, and promotional deals to reach customers.
Retail Media
Retail Media is marketing that targets customers at or near the point of sale. It aims to catch shoppers when they’re already mid-purchase, when their mindset is ideally more receptive. Effective retail media can convince customers into changing brands, trying something new or adding other items to their basket to complement their purchase.
Frequently asked questions
Can’t find the answer here? See all our answers on our FAQ page.
1. What Does Retail Media Mean?
Retail Media is marketing that targets customers at or near the point of sale. It aims to catch shoppers when they’re already mid-purchase, when their mindset is ideally more receptive. Effective retail media can convince customers into changing brands, trying something new or adding other items to their basket to complement their purchase.
3. Why Use Sponsored Product Ads?
Sponsored Product Ads are the most effective way of giving a seller’s products visibility and driving sales. They typically offer the highest Return on Ad Spend (ROAS). Sponsored Product Ads replace organic search results in the top search positions. By displaying ads that are highly relevant to the customer’s search query, the customer's behavior can be influenced at the point of purchase.
2. What is relevanC’s Retail Media Platform?
Developed by relevanC Data experts, our retail media platform allows marketplaces, retailers and brands to generate new advertising revenue streams through hyper-relevant, sponsored product ads placed all along the customer buying journey. relevanC’s solution addresses the specific challenges of fair competition amongst marketplace resellers and brands while boosting shopper satisfaction with high relevance.
4. How Do Sponsored Product Ads Work?
Sponsored products work on the principle of a bid auction on keywords and products. Depending on the relevance of your product and the bid you have defined for the keywords, our algorithm then puts the different bids in competition and the most relevant one wins the impression.