11 definitions to simplify your online advertising reports.
Digital advertising is all the rage and rightfully so. Digital is easy to deploy, inexpensive compared to traditional, you can pinpoint your audience based on gender, age, interest or type of coffee they drink. Most importantly, you can measure its effectiveness. All of these factors are helping Look’s clients reach their audiences without overspending on their buys.
However, this medium is considerably more complex to deploy and understand than traditional media.
If you don’t have access to an advertising agency who is going to take the time to walk you through your online advertising reports, you are in luck. Our friends at DSA Media have prepared an explanation of most standardized digital advertising terminology that brings clarity to a complex jungle of advertising jargon.
A placement is who your ads are running with and where you’d like your ads to appear.
For example, if you have “Tribal Fusion” as a placement, your ads will appear on various specified sites that are within Tribal Fusion’s network.
2. Ad sizes.
The standard IAB ad sizes for display are 300×250, 728×90, and 160×600 pixels.
Facebook: the general ad image size for all placement types (flyer, newsfeed, mobile newsfeed) is 1200x628px, with no more than 20% text on the image. Up to 25 characters are allowed for the headline and 90 characters for the body (spaces included).
Google search: the ads will be all text, with 25 characters for the headline and 70 characters for the body of the ad (spaces included) with a URL displayed at the bottom. Mobile ad sizes are generally 300×50 or 320×50.
There are also many other options including video ads and page takeovers.
The number of impressions are the number of times an ad is displayed to a user.
If a customer sees your ad and clicks on it to learn more or to do business with you, it is recorded in your account as a “click”.
5. Click-through rate (CTR).
Your click-through rate (CTR) is a metric that helps show how your ads are performing. The more relevant your ads are, the more often users will click on them, resulting in a higher CTR. The system calculates your CTR as follows: Number of ad clicks/number of impressions x 100.
6. Unique Impressions.
Unique impressions, or page views by different visitors, are useful for measuring the number of daily unique visitors to a website.
For example, a user might see your ad three times, but they would only count as one unique impression.
7. Average Frequency.
Frequency means the average number of times a user is exposed to a form of advertising during a campaign.
8. Cost-per-click (CPC).
Under the cost-per-click (CPC) pricing column, the dollar amount is listed for how much it costs for each click your ads receive.
9. Cost-per-thousand impressions (CPM).
The cost-per-thousand impressions (CPM) column is the amount you’re to pay for each thousand impressions, or thousand views, of your ad.
10. Cost-per-action or cost-per-acquisition (CPA).
The amount an advertiser pays when a desired action has occurred. Some examples of these actions can be a newsletter sign up, contact request, or sale of an item.
11. Cost-per-view (CPV).
The cost the advertiser pays when a user has watched your video. Depending on the supplier, this can be after 30 seconds, or to completion.
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We hope this guide, provided by our partners in media buying, helps you to navigate your online advertising buying more quickly. You can download your printable version of DSA’s definitions below.