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  • Writer's pictureMeghan Mateuszczyk

Digital Advertising ABC's All Agencies Should Know

Updated: Sep 27, 2022

CTR, PPC, CPC, CPA… If these acronyms sound familiar to you, it’s likely that you have experience in the digital advertising realm. But if these terms sound like a foreign coding language… Fear not! We’ll explain to you these key vocabulary words and how they can be utilized at your agency and in your career!

Ad Impressions: The number of times an ad has been served, regardless of whether the user has actually seen or interacted with the ad in any way.

Analytics: Data and statistics about the users of a website and how they interact with the website. Analytics can be used to uncover information about how many people browse a website, how much time they spend on the website, and the specific actions they take on the website. This information is then used to target audiences, understand consumer behavior, improve user experience, and optimize advertising campaigns.

Brand Awareness: The extent or level to which a potential consumer can recall and identify a particular product or service. Increased brand awareness is one of the two customary important goals for a digital advertising campaign (the other being a conversion of some kind).

Call to Action (CTA): A phrase included within an ad, or a graphic element such as a button, which invites the audience to take a certain action. Examples include phrases such as Click to Read More, Download Your Free eBook Now, or Click Here.

Click-through Rate (CTR): Expressed as a percentage of total impressions, this statistic shows how often people who are served an ad end up clicking on it. An ad’s CTR is calculated by dividing the number of clicks an ad received by the number of times it’s been served, then converting that into a percentage. For example, if an ad received 5 clicks and was shown 1000 times, the CTR is 0.5%. The higher the CTR on an ad, the better it’s performing.

Conversion: When launching a campaign, advertisers select a specific action or set of actions they want audiences to take. Each time a member of the audience takes this action, it is counted as a conversion. Conversions include actions such as signing up for a newsletter or making a purchase on a website.

Copy: Text in an ad or text written to be delivered audibly. Best practice with ad copy is to stay away from advertising jargon.

Cost per Acquisition (CPA): The cost of acquiring one customer. Typically calculated by dividing the total amount spent on an advertising campaign by the number of customers acquired through that campaign

Cost per Click (CPC): How much an advertiser pays, on average, for each ad click. CPC is calculated by dividing the total amount spent on a campaign by the number of clicks generated.

Pay-Per-Click (PPC): Pricing model where advertisers pay vendors or publishers based on the number of clicks received in a campaign.

View-Through: Used to measure a consumer’s behavior after they’ve been served an ad. If the view through the window is set to 90 days, the consumer’s relevant actions within that time period can be attributed to the ad. So, if a customer purchases a pair of headphones within 90 days of being served an ad for those headphones, the ad will get partial or full attribution for that purchase.

There’s a lot of terms to know and familiarize yourself with and this list just scratches the surface but the more you know about digital advertising the better you can digitally advertise!

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