Formulas & Terminology
Formulas used in AdTech
- VTR = (Total completed views / Total measured impressions) x 100
- CTR = (Number of Clicks / Number of Impressions) x 100
- CVR = (Number of Conversions / Number of Clicks) x 100
- CPC = (Total Ad Spend / Number of Clicks)
- CPM = (Total Ad Spend / Number of Impressions) x 1000
- eCPM = (Total Earnings / Total Impressions) x 1000
- Fill Rate = (Number of filled ad requests / number of total ad requests) * 100
- Win rate (WR) = (number of won auctions / number of auctions participated in) * 100
Terminology
Bid request - A bid request in ad tech is a signal sent by a website or app to potential advertisers, asking if they want to place an ad in a specific spot and how much they’re willing to pay. It happens in real time and includes details like the user’s demographics, device type, and browsing behavior.