25 key concepts in advertising
There are so many terms in advertising and marketing that it is difficult to keep track of them all. That's why we've collected 25 terms that are useful to know in advertising.
5 quick concepts in advertising
- CPC (Cost Per Click) - The price you pay per click in your ppc campaign.
- PPC (Pay Per Click) - The advertiser only pays for the clicks that lead a visitor from the advert to the website.
- CPM (Cost Per Mile) - The advertiser pays per thousand impressions of an advert.
- CPA (Cost Per Acquisition) - Means that the advertiser only pays when the desired action/conversion/acquisition has taken place.
- CTR (Click Through Rate) - Is a percentage of the number of people who saw an advert and actually clicked on it.
Glossary for advertising
Affiliates
Means advertising network in Swedish. Affiliates use digital adverts and internet traffic from a specific website (e.g. blog) to refer visitors to the advertiser's website. Advertising revenue is usually based on the number of clicks/page views.
CPA
Stands for Cost per Acquisition but can also be called Cost Per Action. It is a payment model for online advertising. It means that the advertiser only pays when the desired action/conversion/acquisition has taken place. For example, it may be that the customer becomes a member or buys.
CPC
Stands for Cost Per Click. CPC is the price you pay per click in your PPC campaign.
WHC
Stands for Cost Per Mile. Online advertising payment model whereby the advertiser pays per thousand impressions of an advert.
CTA
Stands for Call to Action. It is a term often used to describe elements or prompts that take the visitor further in a buying process, for example.
Did you know? Call to Actions are most common in e-commerce segments, where they are naturally present. However, they are equally important in other segments, such as informational or business websites. Even on these, it is important to entice the visitor to take action and show them the way to a conversion.
CTR
Stands for Click Through Rate. It is a percentage of how many people have seen an advert and actually clicked on it. CTR is an important factor that affects the Quality Score and thus has an impact on position and cost. How much you are prepared to pay per click, the maximum CPC, together with the Quality Score, determines the position of the advert.
Did you know? The CTR plays a crucial role in the quality score for keywords, which in turn is partly decisive in the ad auction. A high CTR indicates that you are relevant in the search results as many people who see your advert choose to click on it.
Display advertising
Display advertising is a form of advertising on websites, apps or social media. Companies buy a digital advert for a fixed amount and can showcase their brand through a banner, for example.
Level of engagement
The engagement rate for a campaign is the percentage of visitors who have seen the advert or post and engaged with it in some way e.g. shared, commented, shopped etc. Good engagement rates are the domino effect or exponential growth. I.e. 2 visitors spread the product/service to 2 people each, and these people do the same.
Facebook Audience Insight
Gives you deeper audience insights and can give you better conversion value if you know your audience and capitalise on this. E.g. age, gender, geographical location or language.
Facebook Insight
Facebook's tool for extracting data and statistics (audience statistics) about your traffic from advertising and organic spread on Facebook.
Facebook Ads Manager
Facebook Ads Manager is your starting point for running ads on Facebook, Instagram or Audience Network. It's an all-in-one tool for creating ads and managing when and where they run and tracking how well your campaigns perform. An editing as well as statistics tool for ads on Facebook. Used to target an audience and to track the performance of ads. Facebook Ads Manager is a powerful ad management tool, but it's designed for advertisers of any experience level.
Did you know? With the Ad Manager mobile app, you can keep track of your campaigns and make changes from anywhere.
Google Ads
It was previously called AdWords. Google Ads is a tool that provides keyword suggestions and traffic estimates when you create campaigns on the search network.
Google Trends
Google Trends is a tool from Google that shows how certain keywords/search phrases compare to others over a selected period of time in a specific geographical area
Impressions
A measurement of the response of a web server to a page request from the user browser.
A served impression is when an advert is retrieved from the source it is counted as an "impression".
Viewed impressions are when a visitor actually sees the advert on their screen , source.
click
Clicks are often used as a concept in marketing or web analytics, for example, to measure the number of times an advert or web page is clicked on.
Purchased range
Is this how many people your advert reached by paying for the advert
Native advertising
Native advertising is advertising that blends in with its surroundings. They should resemble the content of the website, for example, by having the same tone and design, and convey something to the visitor in the same way as the site's own content.
PPC
Stands for Pay Per Click. The advertiser pays only for the clicks that lead a visitor from the advert to the website, making the advert itself free of charge.
Did you know? PPC is one of the most common forms of advertising used in digital marketing where the advertiser buys keywords or phrases for their website.
Programmatic marketing
It is an automated advertising tool that allows you to advertise effectively, profitably and with better targeting.
Remarketing
Remarketing helps you reach people who have visited your website or used your app but did not complete a conversion. With remarketing, you target adverts to potential customers. This is mainly done in the form of emails where you often give the visitor an offer.
Did you know? Many people think that remarketing and retargeting are the same thing. The terms are also often confused.
Retargeting
Helps you reach people who have visited your website or used your app. You then target adverts to those visitors when they visit another website within the Google Display Network or do a search on Google search.
Did you know? Many people think that remarketing and retargeting are the same thing. The terms are also often confused.
ROI
Stands for Return on Investment. Means return on investment in Swedish. ROI is used to measure and compare results.
SEA
Stands for Search Engine Advertising. Means search engine advertising in Swedish. SEA is the collective name for all paid marketing (adverts) in search engines.
SEM
Stands for Search Engine Marketing. Means search engine marketing in Swedish. SEM is a form of marketing that takes place via search engines, such as Google. SEM is a collective term for SEO and SEA. This means that SEM is the umbrella term for both paid marketing and search engine optimised marketing, i.e. marketing via search engines.
SERP
Stands for Search Engine Result Page and is the search engine result page. For example, the first page of Google when you search for something.
Now you've learnt a bunch of concepts in advertising and marketing. Want to know more about marketing? Contact us and we will organise a meeting over coffee.
This is part 3 of 4 in the series on key concepts in the marketing and web development industry. Stay tuned for the last part!
