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Basic Terms in Digital Marketing

Digital Marketing Glossary

 

Impression :

An impression is a metric used to quantify the display of an advertisement on a web page. Impressions, also referred to as an “ad view,” are used in online advertising, which often pays on a per impression basis. Counting impressions is essential to how web advertising is accounted and paid for in search engine marketing.

CTR ( Click Through Rate )

Click-through rate (CTR) is a performance metric expressed in percentages that measures the amount of times an ad or email is clicked versus the amount of times it’s been viewed (impressions).

Formula  : CTR = (Number of Clicks / Number of Impression ) * 100

 

Conversion :

An action that’s counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you’ve defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone.

 

Cost Per acquisition (CPA)

Cost per acquisition (CPA), also known as cost per action, pay per acquisition (PPA) and cost per conversion, is an online advertising pricing model where the advertiser pays for a specified acquisition – for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.)

The CPA can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent. For example, if a company spent $100 on marketing in a year and acquired 100 customers in the same year, their CAC is $1.00.

Ad Dimension:

The creative size is referred to as the Ad dimension. It is the Ad slot present in the Publisher page.

Affiliates:

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.

Media Agency

Media agencies are the ones who advise companies on how and where to advertise, and on how to present a positive picture of themselves to the public. Primary services include advertising, public relations and other forms of media management.

Ex : groupm, i-prospect

Web Cookies

Cookies are small files which are stored on a user’s computer. They are designed to hold a modest amount of data specific to a particular client and website, and can be accessed either by the web server or the client computer.

Frequency Capping:

Frequency capping is the average number of times a unique user sees an ad in a position of “1” over a given time period. Frequency capping are used to control the maximum number of times that you’d like each person to see your ad on the Display Network.

Geo Targeting:

Geo targeting refers to the practice of delivering different content or advertisements to a website user based on his or her geographic location. Geo-targeting can be used to target local customers through paid search campaigns.

Ad Tags:

A small piece of code that is used to display a banner ad on publisher website.

CPM and CPC:

CPM is the cost per thousand impression and CPC is cost that an advertiser has to pay when one single click has happened.

 

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