1. Impressions
This used to be a term
more appreciated, which means how many times a user saw your ad or banneror any online
advertisement. Each time your ad has been viewed counts as an impression.
2. CTR (Click
Through Rate)
How many users that
saw your ad have clicked on it too and visited your website or landing page.
The Click Through Rate is calculated as Clicks / Impressions.
Example : Let’s say your ad reached 100 impressions, and 10 users also clicked on the ad, it means your CTR is 10%.
The Click Through Rate is calculated as Clicks / Impressions.
Example : Let’s say your ad reached 100 impressions, and 10 users also clicked on the ad, it means your CTR is 10%.
3. Conversion
Once a user saw your
ad, clicked on it and visited your website or any landing page and does any
action like buying of any product or registers or downloads depending upon the
which action has been considered as conversion for that campaign , a conversion is calculated.
4. Call for Action
It’s the most
important for the user to take any action.Call for Action is what drives the
users to interact with your campaign. Depending on the goals that the
advertiser set for the campaign, the Call for Action may be: Request a quote,
download a brochure, sign up for a newsletter, and of course- buy a
product or book a room online.
5. CPL (
Cost per Lead) / CPA (Cost per Acquisition)
It’s the cost spending
on clicks / conversion .
Example : Let’s say your ad drew 100 clicks at 100$, and you achieved 10 Conversions, then you CPL / CPA is 10$.
Example : Let’s say your ad drew 100 clicks at 100$, and you achieved 10 Conversions, then you CPL / CPA is 10$.
The lower the CPL/CPA
value , means good is the conversion rate.
6. ROI (Return
on Investment)
The best example to
understand ROI is :
Let’s say you are promoting your restaurant and the Call for Action is booking online reservation for dinner. You already know that your profit from every guest is 10$. In that case, if the CPA is 8$, which means you spent 8$ advertising money to get a reservation, than your ROI is positive, because you have 2$ profit on every reservation.
Let’s say you are promoting your restaurant and the Call for Action is booking online reservation for dinner. You already know that your profit from every guest is 10$. In that case, if the CPA is 8$, which means you spent 8$ advertising money to get a reservation, than your ROI is positive, because you have 2$ profit on every reservation.
7. CPM (Cost
per mille)
Commonly used
measurement in advertising !!
CPM is also called as CPT i.e cost per thousand , which means we need to pay cost on every 1000 impressions.
Example : If CPM is $5 , it means cost of 1000 impression is $5 .
CPM is also called as CPT i.e cost per thousand , which means we need to pay cost on every 1000 impressions.
Example : If CPM is $5 , it means cost of 1000 impression is $5 .
8. CPC (Cost
per click)
Just like CPM , CPC is
also a measurement used in online advertising , the only difference is this
cost is based on clicks and not impressions . If any user is shown the Ad but
he doesn’t clicks on it their won’t be any cost effect as the cost is based on
clicks only.
Example : If CPC is $5 , it means every click costs $5 so 20 clicks than it will cost us $100.
Example : If CPC is $5 , it means every click costs $5 so 20 clicks than it will cost us $100.
*Also , consider a
campaign where payment is based on impressions, not clicks. Impressions are
sold for $10 CPM with a click-through rate (CTR) of 2%.
1000 impressions x 2%
CTR = 20 click-throughs
$10 CPM / 20 click-throughs = $.50 per click.
$10 CPM / 20 click-throughs = $.50 per click.
9. CPA (Cost per acquisition)
It’s another word for
cost per action and is used interchangeably with this term. CPA measures the
advertiser’s per conversion cost from start to finish, from the inclusion to
the search engine results to creating interesting landing pages that grab the
attention of the visitor. This means cost per acquisition measures how much it costs in advertising to convert one person from a
visitor to a client for the company.
Action can be
different for different campaigns , like for some registration is set
as a conversion and for some the buying of any product i.e when a user reaches
the ‘Thank you page’ or may be downloading anything from the client’s page.
10. CPE (Cost
per Engagement)
A new measure of
performance in online advertising. After CPM, CPC and CPA we have this CPE
which has no relation with impression but only with the engagement i.e when any
user engages with the brand content.
This measure actually differentiates between quantity and quality.
Engagement can be defined as a user interacting with an ad in any number of ways, including viewing, sharing, voting, commenting, reviewing, playing a game , etc.
This measure actually differentiates between quantity and quality.
Engagement can be defined as a user interacting with an ad in any number of ways, including viewing, sharing, voting, commenting, reviewing, playing a game , etc.
CPE campaigns are
mainly video campaigns as it initiates used to engage with the creative.
11. CPL (Cost per Lead)
A lead is the
initiative in an action .
It is usually a free registration or filling of the form on the creative like mobile number , email Id or name , etc.
Once the user fills the detail , a lead is counted !
It is usually a free registration or filling of the form on the creative like mobile number , email Id or name , etc.
Once the user fills the detail , a lead is counted !
12. Ad Dimension
The size of a creative measured in pixels.
e.g. 728×90 ; 300×250 ; 160×600 etc.
13. Ad Space
The space on a Web
page reserved to display advertising.
14. Banner
An online
advertisement in the form of a graphic image that typically runs across the top
or bottom of a Web page, in the margin, or other space reserved for ads.
i.e the Ad Space on the respective web pages.
15. Pop-Under
A window that launches
automatically behind the current browser window. It is a type of advertisement
like expandable , video Ads are also type of advertisement .
16. Pop-Up
A window that launches
automatically in front of the current browser window.
17. Affiliates
A type of advertising system based on the CPA payment method whereby web sites run
advertiser’s banners for free but get paid on any sales or registrations that result from
visitors that click on the banner.
18. Agency
An organization that provides a variety of ad services for advertisers, including helping
them design creative and locate the best place to run their advertising campaign.Today
there are number of agencies in market , e.g Exponential , Zedo , Eye Blaster
etc..
19. Cookies
Cookies are small
files that are sent from a web server to the local user’s computer to
store information unique to that user.Often used by advertisers to keep
track of the number
and frequency of advertisements that have been shown to a visitor or by sites to help them determine the
number of unique visitors.Cookies can also be used to target advertising,
such as targeting advertising based on an individual’s user profile on a site.
20. Frequency Capping
A term used to describe the number of times the same advertisement is shown to the
same visitor during a particular session or time frame.Frequency Capping is a popular
method for ensuring that a single user does not see the same ad too often.
21. Geo targeting
Geo targeting is
the practice of targeting ads
to web users based on their physical location ,
e.g. If i want to show to Ad only to US citizen i can target the Geo only to US
so no other user at different location can see the Ad .
22. Interstitial
An particular type of
advertisement that loads between web pages, requiring a user
to look at it before getting to the page they meant to go to.It
is one of the closest things on the Internet
to television commercials.
23. Post Click Tracking – PCT
This is used to track if a user performs an action after clicking on a banner, such as
completing a registration page or purchasing an item. It is done with the use of a cookie
placed in the browser that is read by a tracking pixel on a page (such as an order
confirmation page or a “thank you for signing up” page).
24. RON
Run of network (RON) means a banner
will run on all the network i.e it has the potential
to appear on any page of any site
that is part of an ad network.This type of buy is not targeted to any
specific choice, it tends to be the
least expensive type of advertisement that can be purchased.Custom
targeting is quite costly than RON.
25. Leaderboard
Leaderboard is a
standard size of an online banner ( advertisement ) of size (w) 729 x (h) 90
(in pixels).
26. MPU (
Mid page Unit )
MPU (Mid Page Unit) or
medium rectangle is a banner (advertisement) size of (w) 300 x (h) 250 (in
pixels).
27. Skyscraper
Ad Dimension 120×600. Commonly used on the side of pages.
28. ATF – “Above the fold” of a
web page.
29. BTF – “Below the fold” of a web page.
30. Insertion Order
It’s a formal contract
binding between both the buyer and seller of inventory.
31. Ad Tags
HTML code produced by your ad server that displays
the corresponding creatives.
32. Pacing
Pacing is how fast the
purchased impressions are delivered , like if the pacing
is AGGRESSIVE , it means the impressions are to be delivered in a
fast pace while if the pacing is GOVERNED , it means the impressions are to be
delivered in some pattern and also in slow mode.
33. Out-clause
Out-clause is the
amount of time you have to cancel an insertion order.
Worth Reading Bro
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