Internet Advertising Terminology

As old and obsolete as this particular topic might seem, one is still surprised with the number of people in the industry who are either not aware or are confused between them. This is a one line explanation article for common terminologies in internet advertising.

IMPRESSIONS:  Essentially the number of page views an ad slot receives. If one was to say that a website gets 1000 impressions a day, it means it gets 1000 page views.

UNIQUE VISITOR:  If you have visited a page / website 5 times in a day you would not be looked at as 5 users, but 1 only. Your IP would only be logged in once. This would be reset every day.

CLICKS: A visitor clicking on a particular section on the site – be it an ad, an article, or anything clickable.

CTR:  Click – through – rate. The number of people who click on an ad, on the site, per 1000 impressions.  Hence if a site gets 20 clicks for a 1000 impressions then the CTR is 2%  i.e. Total Clicks\1000 X 100.

CPM:  Cost to the advertiser for every thousand impressions for his ads.  So a 200 CPM would mean that the advertiser will pay the publisher 200 for every 1000 impressions his ad is exposed to.CPC: The advertiser pays the publisher for every click. If an advertisers is paying 5 CPC, then for every click that the ad receives the publisher get 5 of the relevant currency. So 100 clicks would be 500 in revenue. The number of impressions is irrelevant.

CPA:  Could mean 2 things – Cost per Action or Cost per Acquisition.  The former means that the advertiser expects the user to complete upto a certain level of interaction before the publisher will get paid….say not only going to a travel site but doing a search as well. Cost per acquisition refers to the cost involved to an advertiser to be able to acquire a user as a customer under some description. For a travel advertiser it could mean not only a search but a purchase of a ticket… or registering in a new website.

CPL:  Again, the cost involved to generate a lead.  Hence when a departmental store is willing to pay 200 CPL, it means that they will pay 200 for every user who becomes a possible sales lead for them. It does not matter if the user eventually purchases anything or completes the final goal.

EMAILER / MAILER:    All those emails which you keep getting in your inbox. Well someone is sending them and someone is getting paid for that. If you have registered on a mobile forum. The owners can sell the registered user database comprising of people such as you to an advertiser.

VIRAL:   A little difficult to explain in a single line. Will put up another chapter for it. You can see the detailed explanation here.


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