Advertising Terms to Know

To understand what success looks like for your digital advertising campaigns, here are some key terms you will want to know.

  • CPA - Cost Per Acquisition:
    CPA calculates the cost incurred to acquire a customer through a specific advertising campaign. It helps in evaluating the efficiency of customer acquisition efforts.
     
  • CPC - Cost Per Click:
    CPC is the cost incurred by an advertiser each time a user clicks on their ad. It measures the price of driving traffic to a website.
     
  • CPM - Cost Per Mille (Thousand):
    CPM represents the cost of 1,000 ad impressions. It's a metric used to evaluate the cost efficiency of displaying an ad 1,000 times.
     
  • CTR - Click-Through Rate:
    CTR is the percentage of people who click on an ad after seeing it. It gauges the effectiveness of an ad in encouraging user engagement.
     
  •  CTR - Conversion Tracking Rate:
    CTR, in the context of conversion tracking, measures the percentage of users who complete a desired action (conversion) after clicking on an ad.
     
  • PPC - Pay Per Click:
    PPC is an advertising model where advertisers pay a fee each time their ad is clicked. It's commonly associated with search engine advertising.
     
  • ROI - Return on Investment:
    ROI measures the profitability of an investment. In advertising, it assesses the returns gained from the money spent on a particular campaign.
      
  • ROAS - Return on Ad Spend:
    ROAS evaluates the revenue generated for every dollar spent on advertising. It is a crucial metric for assessing the profitability of marketing campaigns.