It’s finally here: the highly anticipated sequel to Retargeting 101! Okay, maybe I’m tooting my own horn a bit, but I know that this information isn’t the easiest to grasp. Even if you think you’ve got ad tech lingo in the bag, it’s always helpful to have a cheat sheet to refer back to in case you ever feel stumped.
If you’re like me, you double and triple-check the meanings of things to avoid looking like a fool. When I started, I didn’t know the difference between terms like CTR and CPC. No one wants to look like a fool.
I’ll go ahead and lay out the most commonly used terms. I’ll make it as simple and painless as possible. For a brief moment, you can pretend you’re back in elementary school scribbling down your vocab words and reading motivational sayings on cutesy bulletin boards. (BTW: You can do it!)
What is a CPM?
CPM is the most common method for pricing web ads.
Cost per impression ($) = Advertising cost ($) Ã· Number of Impressions (#)
Cost per impression is often reflected as Cost per 1000 Impressions (CPM)
What is an Impression?
An impression is the display of an ad to a user while viewing a web page. A single web pageÂ may contain multiple ads. In such cases, a single page view would result in one impressionÂ for each ad displayed.
In order to count the impressions served as accurately as possible and prevent fraud, an adÂ server may exclude certain non-qualifying activities such as page-refreshes or other userÂ actions from counting as impressions. When advertising rates are described as CPM, this isÂ the amount paid for every thousand qualifying impressions served at cost.
Terms Related to Metrics:
eCPM: The effective cost per thousand is calculated by taking total earnings, dividing it byÂ the number of impressions served and then multiplying it by 1,000.
CTR: The click thru rateÂ is the number of times an ad was clicked divided by the numberÂ of impressions served (and multiplied by 100 to express as a percentage).
CPC: The cost per clickÂ is calculated by taking the total money spent divided by theÂ number of clicks received for a campaign.
eCPA: The cost per acquisitionÂ is calculated by the campaign cost divided by the total ofÂ impressions served multiplied by the CTR multiplied by the conversion rate. The eCPAÂ tells you what you would have paid if you had purchased ad inventoryÂ on a cost per actionÂ basis as opposed to CPC or cost per impression.
Feeling overwhelmed? Don’t worry. We’re about to wrap up.
What is a Conversion Goal?
A conversion goal is an event you’d like to see happen on your web site. It might beÂ someone signing up for your service, or making a purchase. It’s the end goal you’re trying toÂ track.
Examples of conversion goals:
Filling out a sign-up form and submitting it
Filling out a contact-us form and submitting it
Completing a purchase
Adding an item to a cart
What’s a Campaign?
A campaign is an advertising term that’s widely used to describe a bundle ofÂ configuration parameters for an advertising initiative. In the display advertising world,Â this bundle of specifics includes, but is not limited to:
The creative (banners)
A destination website when users click on the banner
Targeting rules (geography, device, time, context, demographic, etc.)
I know. That’s a lot of information to digest. If you still need some tutoring, don’t hesitate toÂ contact the Meteora accounts team. We’ll also answerÂ your most pressing questions about retargeting and what the Meteora platform can do for your business!