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Marketing Glossary: Understanding Frequently Used Words in Digital Advertising

Home | The Market Buzz | Marketing Glossary: Understanding Frequently Used Words in Digital Advertising   

CPM, CTR, CPI, impressions, etc. Do these terms give you a headache? We understand, and we are here to help!

When planning or analyzing a marketing campaign for a specific event, some technical terms can be confusing at first.

Here is a glossary that will help you understand frequently used marketing terms you may find in our platform.

Advertising campaign:

  • A campaign can help you promote your company, a message, a product, or a service. It features an ad and the specific settings for its broadcasting (target websites or apps, target audience, language, formats, dates and duration, budget, etc.).

Ad Center:

  • Self-service platform set up by publishers to provide easy access to their advertising inventory. You can create your account and then build your own campaigns using specific settings. You will also have access to reports to evaluate the performance of your campaigns.

Clicks:

  • A click is recorded every time a user clicks on your ad: it can be to enlarge the message or to click on a link. The person has not yet purchased anything.

Conversion:

  • A conversion is an action taken by the user, but it does not necessarily mean a sale. It all depends on your campaign goals. A conversion goal can be a subscription to a newsletter, signing up to an event, completing a purchase, making an appointment, etc. Once you have established your goal, you will be able to track the number of conversions related to it.

CPI – Cost per one impression:

  • This is the average cost per impression. It is calculated based on the budget allocated to your advertising campaign and divided by the number of impressions produced.

CPM – Cost per thousand:

  • This data corresponds to the cost paid per thousand impressions. The CPM is a good metric to compare different campaign results.

CTA – Call to action:

  • This is an important part of your online advertising. A call to action or CTA leads the user to the next step. It can be a question, a catchy phrase, a link, etc., but it must be enticing to the person who reads it.

CTR – Click through rate:

  • CTR stands for click through rate. It is used to determine the proportion of users who see your ad and click on it. It allows you to measure the effectiveness of your campaign and to change certain things, if necessary (text, image, etc.).

Frequency cap:

  • This is the maximum number of times we run an ad on the same device on a given day. On average, a person needs to see your ad 7 times to notice it. It is important to carefully measure the frequency cap to optimize your budget while maintaining a high level of visibility without being redundant or too annoying for the user, which could lead to a negative perception of your ad.

Impressions:

  • An impression is compiled each time we display your ad on a screen, a web page or a mobile application. This data enables us to analyze your campaign by calculating different rates and costs.

Exposed users:

  • This is the number of users who were exposed to your ad during a specific period. Note that users did not necessarily click on it.

Views:

  • A view is any instance of a page loaded in a browser. This data represents the number of times your ad has been viewed by all users. Note that the same user can see your ad more than once.

Hopefully, this will make things clearer for you and help you with your advertising campaigns!

If you have any questions, feel free to contact us!

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Lisa Camacho

Lisa Camacho

Based in our Toronto location, Lisa started her career in print media and branched out into sales and client relations for two of the world’s leading brands in the automotive and travel industry. Within the M32 team, she’s leading the publishers and agencies relationships in Canada and the USA. Connect with Lisa if you’d like to learn more about M32!

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