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Glossary on Digital Advertising

Impressions: The number of times an online ad (any format) has been seen by a user. It is often...

👤 Prime Point Srinivasan2016-09-01 11:43:00.0
Glossary on Digital Advertising
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Impressions: The number of times an online ad (any format) has been seen by a user. It is often hard to obtain an accurate impression count as they can be miscounted due to issues relating to cache incomplete requests.

Clicks: The number of click through occurred as a result of a user viewing an online ad (any format) and being re-directed to the advertiser's page.

Click through Rate (CTR): The number of clicks of the online ad (any format) divided by the number of impressions of the online ad (any format).

Cost per thousand (CPM): is one of the online payment models by which advertisers pays for every 1000 impressions of their advertisement. Prices typically range from £1 to over £50 per thousand impressions. This is an ideal method of payment for advertisers who want to guarantee only the number of people who sees their online ad. The "M" in CPM is from the Roman numeral for 1000, "mille" meaning "thousand".

Cost per click (CPC): is one of the online payment models by which advertisers pay for each click through made on their online ad (any format). Prices typically range from £0.01 - £50 per click through. This is an ideal method of payment for advertisers who need to guarantee they only pay for those viewers of the banner that click on it and visit a page on their site.

Cost per action (CPA): is one of the online payment models by which advertisers pay for every action (sale or registration) completed as a result of a visitor clicking on their advertisement. Prices typically range from £0.50 to £50 or if a percentage of a sale 5% to 25%. This is an ideal method of payment for advertisers who want to guarantee only the number of customers generated as a result of an advertisement.

Cost per Lead (CPL): One of the types of CPA, a cost per lead (CPL) method allows advertisers to pay for every lead or customer inquiry that resulted from a visitor who clicked on their advertisement. Prices typically range from £1 to £6. This is an ideal method of payment for advertisers who want to guarantee only the number of potential customers with an interest generated as a result of an advertisement. Also known as cost per inquiry (CPI).

Rich Media: A type of advertisement technology that often includes richer graphics, audio or video within the advertisement. Unlike static or animated GIF banner advertisements, rich media advertisements often enable users to interact with the banner without leaving the page on which it appears. Some popular types of rich media banners are created with HTML, Shockwave & Flash.

Contextual Advertising: Contextual Advertising is also known as content-targeted advertising, which means that an advertisement is shown on a web site that is "in context" to a company's specific product or service. For e.g. If one searches for Edinburgh Hotels, they would be targeted with hotel offers and packages in and around Edinburgh, alternatively, on Google, they would be subjected to the top websites, based on Google ranking, on their search page.
Source: http://www.adglossary.com/


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