Retail media glossary

Retail media

VTEX Ads

The following glossary brings together the main terms and concepts related to retail media:

Term	Meaning
Endemic advertiser	Brand that promotes products directly related to the store's portfolio. For example, a brand advertising its electronic products on an ecommerce website that already sells them.
Non-endemic advertiser	Brand that advertises in a retail store even without directly selling its products on that channel. For example, a car brand running campaigns in a marketplace that doesn't sell cars.
ACOS (Advertising Cost of Sales)	Advertising costs are relative to the revenue generated. Formula: `ACOS = (Ad Spend/Revenue generated) × 100`. The lower the ACOS, the more efficient the campaign.
CDP (Customer Data Platform)	Platform that unifies consumer details (behavioral, transactional, demographic, etc.) to offer an integrated and customized view.
Closed-Loop	Ability to track the impact of campaigns from start to finish, connecting marketing actions to actual results (like sales).
CTV (Connected TV)	Internet-connected TVs, such as Smart TVs. They allow broadcasting ads on platforms like Netflix and Amazon Prime.
Cookies	Text files that store user information for tracking purposes.
CRM (Customer Relationship Management)	Tools and processes to manage customer relationships. In retail media, CRM allows for segmentation and customized notifications.
Coverage (Fill Rate)	Ratio between delivered ads and requests made by the ad server. Formula: `(Delivered impressions/Requested impressions) × 100`.
CAC (Customer Acquisition Cost)	Average amount spent to acquire a new customer. Formula: `CAC = (Total invested in marketing and sales/Number of new customers)`.
Churn	Cancellation rate or customer loss over a period. Formula: `(Lost customers/Total customers at the start of the period) × 100`.
Data clean room	Secure environment where stores and partners share anonymized information to enrich campaigns and ensure privacy.
Digital signage	Digital screens used in physical stores to display ads or information, optionally supporting programmatic distribution.
Display	Type of offer that combines visual elements and text, possibly containing a redirect button to a destination link.
DMP (Data Management Platform)	Platform that collects, organizes, and analyzes details to segment audiences and direct campaigns more efficiently.
DSP (Demand-Side Platform)	Platform used by advertisers to buy media programmatically based on criteria such as interest, location, and behavior.
First-party data	Details collected directly by the store from interaction with the consumer (for example, purchases or browsing).
Incrementality	Measure of the additional impact caused by a campaign or action that wouldn’t happen without the intervention.
Sales lift	Metric that indicates the increase in sales that can be attributed to a specific marketing campaign.
LTV (Lifetime Value)	Total amount generated by a customer throughout their relationship with the brand. Formula: `LTV = (Average ticket × Purchase frequency × Relationship duration)`.
Onsite media	Advertising run on the store's own property, such as an ecommerce website, app, or physical store. Examples: banners, digital signage, notifications via CRM.
Offsite media	Advertising outside the store's channels, such as social media, CTV, and third-party websites.
Programmatic media	Automated media purchase based on data and specific criteria. Uses algorithms to optimize results in real-time.
Omnichannel	Strategy that integrates online and offline channels, offering a unified experience to the consumer, regardless of the channel used.
Sponsored products	Product ads displayed similarly to organic results, but highlighted (with a "sponsored" flag). They're activated by keywords, categories, or context.
Retail media	Advertising conducted within retail channels, using consumer information for customization and efficient measurement of results.
ROAS (Return on Ad Spend)	Return on advertising investment. Formula: `ROAS = (Generated revenue/Media investment) × 100`.
ROI (Return on Investment)	General return on investment. Formula: `ROI = [(Revenue - Total cost)/Total cost] × 100`.
Share of search	A brand's share in searches made on a website. Formula: `(Brand searches/Total searches in the category) × 100`.
Market share	The share of a company or product in the total sales of an industry or category during a specific period.
Third-party cookies	Cookies created by domains different from the accessed website used for tracking and customized ads.