As the increase in the number of internet users are growing exponentially day by day. Eventually, this has opened the doors for advertising through the internet. Online advertising or Internet advertising is a new way of advertising over the internet. The internet is a huge marketplace with the landscape covering the whole world.
Let's understand basic terms used in the Online advertising:
Impressions: When an ad is viewed by the visitor in a website then it is counted as a single impression.
Clicks: When a visitor clicks on the ad then it is counted as the single click.
Conversion: when a visitor made a purchase after the viewing the ad.
Budget: Budget is an amount that is allocated for running the ads in a particular period. Usually, the budget will be either Weekly or Monthly.
Spend: The amount that spent for running the ads over the day or week or month
What is Campaign?
A campaign in terms of advertising means it is set up with a weekly or monthly budget, duration(the period in which ads should run), geo targeting(targeting location ex: India, US, Aus etc,.), banner ads(specific product ads or brand ads), etc,.
CPM: Cost Per Impression is defined as the cost that incurred for displaying 1000 impressions in the publisher website.
Spend
CPM = ------------- X 1000
Impressions
CPC: Cost Per Click is defined as the cost that incurred for clicking an ad
Spend
CPC = --------
Clicks
CPA: Cost Per Acquisition is defined as the cost that incurred for purchasing a product from the advertiser website.
Spend
CPA = -----------
Conversion
CTR: Click Through Rate is the ratio of clicks to the impressions which is used to measure the performance of the ads. The number of clicks that obtained the after the certain number of the impressions. Higher number of clicks with less number higher the performance of the ad.
Clicks
CTR = ----------- (Impressions> Clicks)
Impressions
For example: if an ad has 1000 impressions and got 50 which means CTR is 50/1000=0.05 usually as per the market standards the CTR less than 0.2 is considered to be better performing.
ROI: Return on Investment is the returns which received after the running the campaigns.
Attribution: Advertiser uses the different mediums to advertise their ads, for example, advertiser runs Adwords for promotional purpose, simultaneously he uses Criteo, AdRoll to retarget his website visitors.
As per market standards, the advertisers gives 30% for advertising purpose to each medium.
Win Rate:
Number of Impressions Won
Win Rate = -------------------------------------------
Number of Impressions Bid
Viewability: Viewability refers to the ads displayed on the publisher website whether an ad is viewable on the top of the website (above the fold) or ad which is viewable after the scrolling the webpage (below the fold). The ads which are displayed the below the fold will not be considered as the impression. Also, the ads which are displayed above the fold are considered as an impression only if ads are displayed for 0.1 seconds continuously.
In simple words, an impression will be counted as single impression only if ads is displayed or rendered for 0.1 seconds continuously.
Segments: Segments refer to separating or segregating their target audience into the small pieces of buckets.
Prospecting: Prospecting refers to the kind of promoting a website to target the audience belong the advertiser website vertical.
Let's understand basic terms used in the Online advertising:
Impressions: When an ad is viewed by the visitor in a website then it is counted as a single impression.
Clicks: When a visitor clicks on the ad then it is counted as the single click.
Conversion: when a visitor made a purchase after the viewing the ad.
Budget: Budget is an amount that is allocated for running the ads in a particular period. Usually, the budget will be either Weekly or Monthly.
Spend: The amount that spent for running the ads over the day or week or month
What is Campaign?
A campaign in terms of advertising means it is set up with a weekly or monthly budget, duration(the period in which ads should run), geo targeting(targeting location ex: India, US, Aus etc,.), banner ads(specific product ads or brand ads), etc,.
CPM: Cost Per Impression is defined as the cost that incurred for displaying 1000 impressions in the publisher website.
Spend
CPM = ------------- X 1000
Impressions
CPC: Cost Per Click is defined as the cost that incurred for clicking an ad
Spend
CPC = --------
Clicks
CPA: Cost Per Acquisition is defined as the cost that incurred for purchasing a product from the advertiser website.
Spend
CPA = -----------
Conversion
CTR: Click Through Rate is the ratio of clicks to the impressions which is used to measure the performance of the ads. The number of clicks that obtained the after the certain number of the impressions. Higher number of clicks with less number higher the performance of the ad.
Clicks
CTR = ----------- (Impressions> Clicks)
Impressions
For example: if an ad has 1000 impressions and got 50 which means CTR is 50/1000=0.05 usually as per the market standards the CTR less than 0.2 is considered to be better performing.
ROI: Return on Investment is the returns which received after the running the campaigns.
Attribution: Advertiser uses the different mediums to advertise their ads, for example, advertiser runs Adwords for promotional purpose, simultaneously he uses Criteo, AdRoll to retarget his website visitors.
As per market standards, the advertisers gives 30% for advertising purpose to each medium.
Win Rate:
Number of Impressions Won
Win Rate = -------------------------------------------
Number of Impressions Bid
Viewability: Viewability refers to the ads displayed on the publisher website whether an ad is viewable on the top of the website (above the fold) or ad which is viewable after the scrolling the webpage (below the fold). The ads which are displayed the below the fold will not be considered as the impression. Also, the ads which are displayed above the fold are considered as an impression only if ads are displayed for 0.1 seconds continuously.
In simple words, an impression will be counted as single impression only if ads is displayed or rendered for 0.1 seconds continuously.
Segments: Segments refer to separating or segregating their target audience into the small pieces of buckets.
Prospecting: Prospecting refers to the kind of promoting a website to target the audience belong the advertiser website vertical.