Online Advertising Terms Explained
I am starting to get my head around all the different jargons and marketing terms especially those related to online advertising and marketing. I will probably come back to this post and update as I discover more and more terms but here is what I found so far.
Advertisers – those placing an ad on ad network
Publishers – those publishing ads from ad network
Ad network – a group of websites where one advertiser controls all or portion of the ads e.g. Google Adsense controls ads placed by many different companies
CPC – Cost Per Click (CPC) sometimes known as Pay Per Click (PPC) refers to the charge model set by advertisers. CPC varies depending on advertisers, what is advertised and competition among those placing the same ad. To a publisher, CPC simply refers to the amount you would earn from each click on the ads published on your site. Let’s say you received 2 clicks and the CPC is £0.95, you made a total of £1.90 (on estimated earnings).
CPM – Cost Per 1000 iMpressions is the price set by advertisers for every 1000 ads served. Advertisers have the option of choose the type of ad and placement and pay for the number of times the ad is shown. To a publisher, this simply equates to revenue each time an ad is shown on your website. No clicks from visitors necessary. However, with Google Adsense, the caveat is that CPM ads compete with CPC ads in their auction. In order for advertiser’s ads to show through CPM, they would need to place a higher bid than existing CPC ads.
CPA – Cost Per Acquisition or sometimes Lead is the charge model where an advertiser pays an agreed amount based on actionable event e.g. registration or sale.
RPM – Revenue Per thousand iMpression (RRM) is this is similar to CPM but is used to refer to the potential income to publishers per 1000 page views or impression. RPM is calculated by dividing your estimated earnings by the number of page views that you received, then multiplying it by 1000. Lets say you have an estimated earnings for the day is £2.00 and you received 300 page views. Your Page RPM would be £6.67.
Page RPM = (Estimated earnings / Number of page views) x 1000
e.g. Page RPM = (£2.00/300) x 1000 = £6.67
CTR – Click Through Rate is the ratio of the clicks to page impression. Again, this is more relevant to publishers than those looking to advertise. A Page CTR is the number of actual clicks on adverts that you publish on your site divided by the number of page views. Let’s say that you had 3 clicks on adverts published on your site today from 300 page views. You Page CTR is (0.01 or 1%). Typically, the higher the Page CTR, the higher the earning from your ads. However, this also depends on the ads itself, some ads (and click through) cost more to advertisers and therefore worth more to you as publisher.
Page CTR = Clicks / Page views
e.g. Page CTR = 3/300 = 0.01 or 1%
Above the fold – is a typical term used to describe part of the web page the visitors see without scrolling down.
Pop-Up and Pop-Under – two different modes of ad placement, these are more aggressive ads that advertisers can place and publishers can put on their website instead of banners and text links. They are set to appear in a light-box or separate window above the page (Pop-Up) or as a separate window under the page (Pop-Under). In the case of Pop-Under, users will see this when they close their current window. Both of which may be viewed as annoying. Browsers typically detect and block this, while giving the user a warning giving them an option to unblock this.
For more ad related terms, visit Google’s Adsense Glossary.
Image from Wrote