i4u Marketing


Advertisement Terminology

What is a banner impression?
Banner impression measures the number of times the banner is displayed, either on a web page or in a separate browser window as a pop-up or pop-under advertisement. Thus, 1000 impressions mean that the banner has been displayed 1000 times.
What is CPM?
Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1000 times. Thus, if a banner ad space has a CPM of $10, it means that the cost of displaying a banner space one thousand times on that space is $10.
What is CTR?
Click Through Ratio determines the effectiveness of a banner ad in terms of click-thrus. It is a ratio of the number of times the banner was clicked on by the viewer and the number of times the banner was displayed. Thus, if a banner has been displayed 1000 times and has been clicked 50 times, its CTR is 50:1000 or 1:20. Changing this CTR into a percentage value yields 5% (1/20 * 100); thus, 5% of the impressions have lead to clicks on the banner.
What is CPC?
Cost Per Click is the price you pay for one click on your banner. It can easily be calculated using CPM and CTR values.

Other Terminologies:

Ad Views: The number of times a specific ad has been displayed. Many ad networks sell advertising using a CPM model, in which ads are purchased and web publishers reimbursed at a fixed rate per thousand impressions
Affiliate: A broadcast station that grants a network an option ofspecific times for broadcasting network programming in return for compensation
Agency commission: Usually 15 percent, allowed to advertising agencies by media on the agencies' purchase of media space or time. 
Animated GIF: A graphic image in GIF (graphical interchange format) format composed of multiple layers which display in turn, providing the illusion of motion. A large percentage of non rich-media banner ads are in animated GIF format. Animated GIF banners have historically generated higher click-through rates than static images. However, as web users have grown more mature, some studies indicate that blinking or flashing images are more often automatically ignored, as users have come to assume that any animated image on a page is an advertisement. 
Audience: Persons who receive an advertisement; individuals who read a newspaper or magazine, listen to a radio broadcast, view a television broadcast, and so on. 
Banner Ad: Banner and banner ad are generic terms describing the most common forms of online advertising, the 468x60 image or rich media ad displayed at the top of many commercial web sites
Barter: An advertising medium that sells time or space in return for merchandise or other nonmonetary returns: also a television programming offer in which a station is offered a syndicated program in exchange for commercial positions within the program. 
Billing: The value of advertising that is handled by an advertisingagency on behalf of its clients (often called "billings"); the pro of issuing invoices for media space and time that have been purchased. 
Blanket contract: A special rate or discount that is granted by an advertising medium to an advertiser who promotes several products or services through more than one agency
Bulk discount / Bulk rate: A discount offered by media for quantity buys (se Quantity discount.
CPC: A performance-based pricing model for advertising sales, CPC, or cost per click pays publishers based on number of clicks on a specific ad. Most ad networks, logically enough, only pay once per click per user within a specified time period, generally 24 hours or more. CPC rates can vary greatly, from $0.01 to $0.05 for low-scale networks, up to $0.35 or more for more reputable ad networks. 
CPA: CPA, or cost per action, is an ad payment model in which advertisers pay only when an ad display leads to a completed sale, registration, download, etc. Virtually all affiliate network advertising can be thought of as CPA. Low-volume sites will find it difficult, if not impossible, to generate revenue through CPA advertising, as a large quantity of banner displays would be needed to generate actual sales. A typical CPA ad may generate a CTR (click-through-rate) of 1%, followed by a conversion rate (the rate at which users complete a sale or registration) of 1%. At those comparatively high levels, 10,000 banners would have to be displayed to generate one sale. For this reason, commissions must be high enough to translate into a reasonable CPM for the web publisher. In the previous example, a commission on sales of $5.00 would translate to a CPM of $0.50, which is low but not unreasonable in today's market for banner ads.
CPM: CPM, or cost per thousand (the M is from the Roman numeral for thousand, which was derived from the Latin "mille"), is the price an advertiser pays for each 1000 displays of a banner ad. As opposed to performance-based models such as CPA or CPC, CPM rates guarantee web publishers revenue for each ad displayed, whether the visitor clicks it or not, and are thus usually preferable to CPC or CPA models. CPM levels at the most common ad networks range from $0.20 - $1.50 for 468x60 banners, up to $5.00 - $8.00 for popups, popunders and layer ads, and potentially higher for interstitials and full page ads. 
Demographic characteristics: The population characteristics of a group or audience. 
Direct mail advertising: Advertising sent by mail; also used to describe advertising in other media that solicits orders directly through the mail. 
Direct marketing: Sales made directly to the customer, rather than through intermediaries or intervening channels: includes direct mail, direct advertising, telemarketing, and so forth.
Directory advertising: Advertising that appears in a buying guide or directory; advertisements in a store directory: for example, Yellow Pages advertising
Insert: An advertisement that is enclosed with bills or letters; a one-page or multi-page print advertisement that is distributed with the publication and may or may not be bound into it.
Landing Page: A landing page is the advertiser's web page to which a user is directed after clicking an ad. For affiliate, CPL and CPA sales, it is important that the landing page is one which entices users to immediately purchase a product or service, rather than simply the home page of the advertising site. 
Lead: A lead indicates a potential customer who has expressed interest in a product or service, generally by means of requesting additional information or following through on an online registration. Some affiliate programs pay on a CPL, or Cost Per Lead, basis. 
Life: The length of time during which an advertisement is used; the length of time during which an advertisement is judged still to be effective; the length of time that a publication is retained by its audience.
ROI: ROI, or return on investment, is a calculation used to determine the relative efficacy of an ad campaign in financial terms, in particular whether or not an ad campaign has generated more or less new revenue than it cost. Due to the direct response nature of many internet ad campaigns, it may be possible to determine ROI with much greater precision than, for example, a television commercial. The response to broader, branding-style campaigns may be more imprecise. 
RON: A RON, or run of network, buy means that an advertiser purchases banner inventory across an ad network's entire range of sites. This type of buy is often used for large-scale branding or awareness campaigns, and usually commands a significantly lower CPM rate than buys which are targeted demographically or by category or site
Visits: The number of distinct visits to a web site within a specified time period, such as one day or one month. Visits are an imprecise term and numbers may vary considerably depending on the type of calculation used, but many log and statistical applications define a visit as a single browser session by a single IP address. Multiple browser sessions by the same visitor will often be counted as a single visit if the time frame within which they occur is short. Because of the often arbitrary and imprecise methods used to determine visit counts, the term is of comparatively little statistical value. Page views and unique visitor counts, computed individually and in combination, are far more useful in determining the relative popularity of a web page or web site.