Advertising Terms, Simplified

Common advertising terms explained in plain English for busy business owners.

You don't need to be an advertising expert to use Adwave. But if you've heard terms and weren't sure what they mean, here's a simple guide.

TV & Streaming Terms

Streaming TV

TV shows and movies you watch over the internet instead of cable or satellite. Examples: Hulu, Netflix, ESPN app, Peacock. Your ad runs on these services when people watch on their TV, phone, or tablet. Learn more about streaming TV advertising →

Connected TV (CTV)

A TV that connects to the internet. Could be a smart TV, Roku, Apple TV, or Fire Stick. When people watch streaming content on their TV screen (not on a phone), that's CTV. What is CTV advertising? →

Related: OTT, Streaming TV, Linear TV

OTT (Over-the-Top)

Content delivered over the internet, bypassing traditional cable or satellite. Just another way of saying streaming. You don't need to know this term, just know your ad runs on streaming services. What is OTT advertising? →

Linear TV

Traditional TV where everyone watches the same show at the same time (like the 6 PM news or Monday Night Football). Opposite of on-demand streaming. Linear vs. streaming TV →

AVOD (Ad-Supported Video on Demand)

Streaming services that are free (or cheaper) because they show ads. Examples: Tubi, Pluto TV, Peacock's free tier, Hulu with ads. This is where your CTV ads actually run. More people are choosing ad-supported streaming to save money. AVOD vs. SVOD explained →

Related: SVOD, FAST, Streaming TV

SVOD (Subscription Video on Demand)

Streaming services you pay for without ads (or with fewer ads). Examples: Netflix Premium, Disney+ without ads, Apple TV+. Some SVOD services now offer cheaper ad-supported tiers, which creates more advertising inventory. AVOD vs. SVOD explained →

FAST (Free Ad-Supported Streaming TV)

Streaming services that are completely free and supported by ads. Think of it as "cable channels for streaming." Examples: Tubi, Pluto TV, Freevee, Samsung TV+. FAST channels are growing fast and offer great inventory for advertisers.

vMVPD (Virtual Cable)

Streaming services that work like cable but over the internet. Examples: YouTube TV, Hulu + Live TV, Sling TV, fuboTV. These let people watch live TV (including sports and news) without a cable subscription. Your ads can appear here too.

Addressable TV

Technology that lets different households see different ads while watching the same show. Instead of everyone in a ZIP code seeing the same car commercial, a family with kids might see a minivan ad while a young couple sees a sports car ad. CTV makes addressable advertising much easier than traditional cable.

Programmatic TV

Automated buying and selling of TV ad inventory. Instead of calling a sales rep and negotiating rates, software handles it instantly. This is how platforms like Adwave can offer TV advertising starting at $50. It makes TV accessible to businesses of all sizes. How TV ad buying works →

Ad Pod

A group of ads that play together during a commercial break. When you watch streaming TV, you might see 3-4 ads in a row. That's an ad pod. Your ad could be first, middle, or last in the pod.

Pre-roll, Mid-roll, Post-roll

Where your ad appears relative to the content. Pre-roll plays before the show starts. Mid-roll plays during a break in the middle (like traditional TV commercials). Post-roll plays after the show ends. Mid-roll ads typically get the best attention because viewers are engaged in the content.

Dynamic Ad Insertion (DAI)

Technology that inserts ads into streaming content in real-time. This means your ad can be swapped in based on who's watching, when they're watching, and where they are. It's what makes targeted streaming ads possible. What is dynamic ad insertion? →

How Ads Are Bought

CPM (Cost Per Thousand)

What you pay per 1,000 ad views. If your CPM is $25 and you spend $250, you get 10,000 views. Lower CPM means you reach more people for the same budget. CTV CPMs typically range from $15-$35 for small businesses. What is CPM in advertising? →

With Adwave, typical CPMs average $25 for small businesses.

Inventory

The ad slots available for purchase. When streaming services have commercial breaks, those slots are "inventory." Premium inventory (popular shows, live sports) costs more. There's more ad-supported streaming inventory than ever before. CTV advertising market size →

Programmatic Advertising

Automated ad buying using software instead of human negotiations. You set your budget, targeting, and goals. The system finds the right ad slots and buys them in milliseconds. This is how you can launch a TV campaign in minutes instead of weeks.

Real-Time Bidding (RTB)

An auction that happens in milliseconds when an ad slot becomes available. Advertisers' systems automatically bid based on how valuable that viewer is to them. The winner's ad plays. You never see this happening. It's all automatic.

Private Marketplace (PMP)

A more exclusive version of programmatic buying. Instead of open auctions, select advertisers get access to premium inventory at negotiated rates. This is how brands access inventory on premium networks.

Targeting Terms

Targeting

Choosing who sees your ad. You can target by location (ZIP code, city), age, gender, or interests. Better targeting means less wasted ad spend. CTV targeting options guide →

Geotargeting

Targeting people in specific locations. If you're a plumber in Dallas, you can show your ad only to people in Dallas ZIP codes. No wasted budget on people 500 miles away. How to attract local customers →

Demographics

Audience characteristics like age, gender, household income. Helps you reach the right people. Example: a kids' dentist might target households with children.

Household Targeting

Reaching all the TVs in a specific household. Unlike mobile ads that target individuals, CTV targets the household. This is actually better for many businesses because purchase decisions are often made by households, not individuals.

Retargeting

Showing ads to people who have already interacted with your business (visited your website, watched a previous ad, etc.). Someone browses your website but doesn't buy? You can show them a TV ad later to bring them back. What is retargeting? →

Related: Attribution, Conversion

Dayparting

Running ads at specific times of day. A breakfast restaurant might advertise in the morning. A pizza shop might target dinner hours. A bar might focus on Friday and Saturday evenings. You control when your budget is spent.

Contextual Targeting

Targeting based on the content someone is watching, not just who they are. Want to reach people interested in cooking? Show ads during cooking shows. Want sports fans? Target live sports content. The context signals intent.

First-Party Data

Data you collect directly from your customers (email lists, purchase history, website visitors). This is data you own. It's becoming more valuable as third-party tracking becomes restricted. You can use first-party data to target or exclude audiences.

Measurement Terms

Impressions / Views

How many times your ad was shown. One view = one person saw your ad. If 1,000 people watch your ad, that's 1,000 impressions.

Reach

How many different people saw your ad. If the same person sees your ad 3 times, that's 3 impressions but only 1 reach. What is reach in advertising? →

Related: Frequency, Impressions

Frequency

How many times the average person sees your ad. Higher frequency helps people remember your brand. Most TV campaigns aim for 3-5 frequency.

Video Completion Rate (VCR)

The percentage of viewers who watch your entire ad. CTV has exceptional completion rates (often 90%+) because viewers can't skip ads like they can on YouTube. This means your full message gets seen.

View-Through Conversion

When someone sees your TV ad, doesn't click anything (you can't click a TV), but later visits your website or makes a purchase. This is how you measure TV's impact on actions. It tracks the "I saw that on TV" effect.

Incremental Reach

People you reached with CTV who you couldn't reach through other channels. Many streaming viewers have "cut the cord" and don't watch traditional TV. CTV lets you reach them. This is additive to your other marketing. Cord-cutting statistics →

Attribution

Figuring out which marketing efforts led to a sale. Did the customer find you from your TV ad, Google search, or word-of-mouth? Attribution helps you know what's working. CTV measurement and attribution guide →

Performance Terms

Brand Awareness

How many people know your brand exists. TV advertising builds awareness so when customers need your service, they already know your name. Why TV works for brand building →

Brand Recall

Whether people remember your brand after seeing your ad. TV has high recall, people remember ads they see on TV better than ads on social media.

ROI (Return on Investment)

How much money you make compared to what you spent. If you spend $100 on ads and make $500 in sales, that's a 5x ROI. Positive ROI means your advertising is working. How to calculate TV advertising ROI →

Creative Terms

Ad Creative / Creative

The actual ad itself, the video, images, and words people see. Good creative gets attention and makes people remember your business. CTV ad creative best practices →

Call-to-Action (CTA)

What you want viewers to do after seeing your ad. Examples: "Call now," "Visit our website," "Book an appointment." A clear CTA tells people the next step.

Voice-Over

The voice you hear talking in a commercial. Adwave generates professional voice-overs automatically, and you can change the script anytime.

QR Code

A scannable code displayed in your TV ad that viewers can scan with their phone. It bridges the gap between TV and action. People scan, land on your website or offer page. QR codes let you track exactly how many people engaged with your TV ad.

Bumper Ad

A very short ad, typically 6 seconds. Used for quick brand reminders rather than detailed messaging. Standard TV ads are 30 seconds (what Adwave creates), but bumpers can reinforce your brand between longer messages.

Digital Advertising Terms

Landing Page

The page people see when they click your ad or visit your website. A good landing page matches your ad and makes it easy for people to take action (call, book, buy).

Conversion

When someone takes the action you want, makes a purchase, books an appointment, calls your business, or fills out a form. Good advertising drives conversions.

Click-Through Rate (CTR)

For online ads: what percentage of people who see your ad actually click it. A 2% CTR means 2 out of 100 people clicked. Higher is better. (Note: TV ads don't have clicks, people just remember your name and take action later.)

Have questions?

If you run into a term that's confusing, reach out and we'll explain it in plain English. Or just create your first ad. You don't need to know any of this to get started.

With Adwave, you can create a TV ad from just your website URL and launch on 100+ streaming channels starting at $50. See how it works →

Ready to make your TV ad?