Glossary

25/7 Rule: In order for an advertiser to pay for a video impression, the viewer must watch at least 25% or 7 seconds (depending on the length of the ad) of the video advertisement.

Ad Network: An aggregator or broker of advertising inventory for many sites. Ad networks are the sales representatives for the websites within the network.

Aspect Ratio: The width-to-height ratio of a picture or video frame. TV broadcasts at a 4:3 (1.33:1) aspect ratio, digital TV will be broadcast with a 16:9 (1.78:1) ratio; and most feature films are shot in at least a 1.85:1 ratio. IMUs have an aspect ratio of 6:5 (330x250; 336x280; and 180x150)

Bandwidth: The transmission rate of a communications line or system, expressed as kilobits per second (kbps) or megabits per second (Mbps) for digital systems; the amount of data that can be transmitted over communications lines in a given time.

Beacon: A line of code which is used by a website or third party ad server to track a user's activity, such as a registration or conversion. A web beacon is often invisible because it is only 1x1 pixel in size with no color.

Behavior Targeting: A technique used by online publishers and advertisers to increase the effectiveness of their campaigns. Behavioral targeting uses information collected on an individual's web browsing behavior such as the pages they have visited or the searches they have made to select which advertisements to be displayed to that individual. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be influenced by them.

Brand Awareness: Research studies can associate ad effectiveness to measure the impact of online advertising on key branding metrics.

Calls: When a publisher makes an ad query to SpotXchange's system within the parameters that the publisher sets in their channel profile.

Casual Games: A video game or online game targeted at a mass audience of casual gamers. They are typically distinguished by their simple rules, in contrast to more complex hardcore games. Casual gaming demographics also vary greatly from those of traditional computer games, as the typical casual gamer is older and more predominantly female, with over 74% of those purchasing casual games being women.

CGA (Casual Games Association): A professional international trade organization founded to facilitate a healthy and stable global casual games industry; www.casualgamesassociation.org

Channel: A band of similar content; within the SpotXchange network, publishers set up a channel for each URL address that will be sending ad queries to the system.

Click-thru URL: The website or landing page a viewer is taken to after clicking on the advertisers video or companion banner; the URL is pre-selected by the advertiser

Companion Banner: A banner ad which accompanies a video ad and provides viewers an additional opportunity to click through to the click-thru URL. The most common size for a companion banner is 300x250, but all IAB approved sizes are acceptable.

Contextual Targeting: Targeting an individual based on a subject of particular interest to them; displaying ads on sites related specifically to the content the individual is viewing on a webpage.

Conversion Rate: Ratio of visitors who convert casual content views or website visits into desired actions based on subtle or direct requests from marketers, advertisers, and content creators.

Cookie: A small piece of information (i.e. program code) that is stored on a browser for the purpose of identifying that browser during audience activity and between visits or sessions.

Coverage: When SpotXchange answers a publisher's call or 'ad query' with a video advertisement that matches the publisher's predetermined parameters.

CPA (Cost-per-action): Cost of advertising based on a visitor taking some specifically defined action in response to an ad. "Actions" include sales transaction, a customer acquisition, or a click.

CPC (Cost-per-click): Cost of advertising based on the number of clicks received.

CPM (Cost-per-thousand): Media term describing the cost of 1,000 impressions. For example, a website that charges $1,500 per ad and reports 100,000 visits has a CPM of $15 ($1,500 divided by 100).

CTR (Click-thru-rate): Ratio of ad clicks to valid impressions.

CSS (Cascading Style Sheet): A style sheet language used to describe the presentation of a document written in a markup language. CSS provides a more elegant alternative to straight HTML to quickly specify the look and feel of a single webpage or a group of multiple webpages.

Default Tag (Redirect Tags): When a publisher works with more than one ad network they have the option to setup default tags (aka redirect tags). If they send an ad query to 'Network A' and 'Network A' responds with no_ad_available, the default tag directs that query to to 'Network B' for an ad, and so on. This helps to bring the publisher closer to 100% coverage.

Demographics: Common characteristics used for population or audience segmentation, such as age, gender, household income, etc.

Direct Response (DR): A form of marketing designed to solicit a direct response which is specific and quantifiable. The delivery of the response is direct between the viewer and the advertiser.

Effective CPM (eCPM): A measurement of the effectiveness of a publisher's inventory being sold. eCPM is measured by dividing total earnings by total number of impressions in thousands.

Exchange-based Marketplace: A virtual marketplace where advertisers bid on a publishers site directly based on inventory, demographics, content, performance, geography, etc. and in exchange publishers allow the advertiser's video ad to play before their content.

Frequency Cap: The maximum number of times an ad can be delivered to the same browser in a single session or time period. A site can use cookies in order to manage ad frequency.

FLV: Flash Video is a file format used to deliver video over the Internet using Adobe Flash Player.

Geotargeting: Displaying (or preventing the display of) content based on automated or assumed knowledge of an end user's position in the real world. Relevant to both PC and mobile data services.

IAB (Interactive Advertising Bureau): IAB is a non-profit trade association devoted exclusively to maximizing the use and effectiveness of interactive advertising and marketing; www.iab.net

Impressions Served: Responses from a web server to a page request from the user browser, which is filtered from robotic activity and error codes, and is recorded at a point as close as possible to opportunity to see the page by the user.

In-Game Video Ad: Video ads that play while a game is loading, inbetween level breaks or after a player finishes a game.

Integrated Publisher: A publisher who has gone through the necessary techinical steps to actively call the SpotXchange system in real time and become fully integrated into our system.

Interactive Pre-Roll: Form of online video ad placement where the ad is played during a break in the middle of the content video.

Inventory: The number of ads available for sale on a website.

IP Address: Internet protocol numerical address assigned to each computer on the Internet so that its location and activities can be distinguished from those of other computers. The format is ##.##.##.## with each number ranging from 0 through 255 (e.g. 125.45.87.204)

Mid-Roll: Form of online video ad placement where the ad is played in the middle of the content video.

Minimum Channel Bid: The minimum cost (CPM) advertisers must pay to buy traffic on a publisher's channel.

Minimum Network Bid: The minimum cost (CPM) advertisers must pay to buy traffic on ads that are not targeted to specific channels, but may be targeted against geographic regions or content categories.

Overlay: A banner ad which is displayed in the bottom portion of the video player, while the video content is playing.

Performance-based Video Advertising: An advertising model in which advertisers pay based on a set of agreed upon performance criteria, such as a percentage of online revenues or delivery of new sales leads.

Post-Roll: Form of online video ad placement where the ad is played after the content video plays.

Pre-Roll: Form of online video ad placement where the ad is played before the content video plays.

Profiling: The practice of tracking information about consumers' interests by monitoring their movements online. This can be done without using any personal information, but simply analyzing the content, URL's, and other information about a user's browsing path/click-stream.

Publisher: One of the sites which comprise the SpotXchange marketplace.

Purchase Intent: Point at which a consumer's intent or motivation to purchase a product or service becomes an actionable and directed likelihood.

Reach: Unique users that visited the site over the course of the reporting period, or the total number of unique users who will be served a given ad.

Redirect Tag (Default Tag): When a publisher works with more than one ad network they have the option to setup default tags (aka redirect tags). If they send an ad query to 'Network A' and 'Network A' responds with no_ad_available, the default tag directs that query to to 'Network B' for an ad, and so on. This helps to bring the publisher closer to 100% coverage.

Repped Inventory: Inventory for a campaign that is not integrated or trafficked through the SpotXchange platform.

Retargeting: The process of anonymously observing consumers' behaviors while they are visiting a specific website and then targeting messages to those consumers after they leave the site based on whether or not they completed a desired action, thus improving the chance of a sale.

Run of Channel: A form of campaign targeting, when an advertiser creates a channel comprised of selected publishers.

Run of Network: The scheduling of Internet advertising whereby an ad network positions ads across the sites it represents at its own discretion, according to available inventory. The advertiser ususally forgoes premium positioning in exchange for more advertising weight at a lower CPM.

Site Index Score: A measure of how a given metric compares to an average, such as the average U.S. internet user. If a site indexes 100 in visitors aged 12-17, that means a given visitor to it is as likely to be aged 12-17 as any U.S. internet user chosen at random. An index of 200 means the visitor is twice as likely to be a aged 12-17. The higher the index, the better the site is at attracting that type of audience

SOV: Share of Voice, a brand's advertising weight expressed as a percentage of a defined total market or market segment in a given time period.

SWF: An Adobe file format intended to be small enough for publication on the web, SWF files usually contain animation.

Third Party Tracking Tags: A set of tags, usually consisting of a click tag and and image tag, which allow a third party to track clicks and impressions of an ad.

Uniques: Number of unique users who access a Web site within a specific time period.

User Session: Used to specify the frequency of visits to a site.

Valid Impressions: SpotXchange implements a 25% rule, which means 25% of the video must be viewed by a user to constitute it as a valid video impression.

Video Ad Impression: A video ad impression siginifies the viewing of a video ad by a user.

Video Banner: Unlike a traditional banner with a static image, a video banner plays a short video.

View Based Conversions: A method of tracking whether or not a user has seen, but not necessarily clicked on, a particular ad before visiting the actual site.

View Through Rate: Rate of users taking some sort of action after seeing a specific ad.

WMV: Windows Media Video (WMV) is a compressed video file format for streaming video over the internet.