Some Digital Advertising Acronyms that You Must Know

Working in digital advertising will have you pelted with several acronyms. If you are to become a digital advertising expert, you ought to learn some jargon, as it will help you maneuver the world of digital advertising with ease. Here are some of the most used acronyms that you will come across in digital advertising:

  1. KPI: Key Performance Indicator(s)

KPIs are the key metrics that reveal the result or performance of a certain digital marketing strategy in numbers. They are a set of indicators that illustrate how close or far tactics are to their goals.

  1. CPM: Cost Per Thousand Impressions

Also known as Cost Per Mille, it is a common measurement that is used in advertising. It is used in paid advertising, where a business pays a said price for every 1000 impressions (views) an ad receives. CPM doesn’t consider unique view – so if a single person clicks on 5 pages and your ad loads 5 times, then it is 5 impressions, not one.

Total Cost = ((total impressions x CPM)/1000)

  1. CPC: Cost Per Click

This is the cost for every click your ad gets. Like CPM, CPC is also not unique to someone clicking on the ad. If an individual clicks on the ad 10 times, then the business will be charged for 10 clicks.

Total cost = clicks x CPC

  1. PPC: Pay Per Click

PPC and CPC are the same. It’s just that PPC is a pricing model in the digital advertisement, and CPC is a performance metric.

  1. PPV: Pay Per View

PPV is when a video or image of an ad is visible on a web page, and a view is counted only if the viewer completes watching the ad for a certain number of seconds of the ad or interacts with the ad.

  1. VTC: View Through Click

VTC also helps in measuring the effectiveness of an ad campaign as it tracks the users who had seen your ad earlier but did not click on it yet later visited the business website and made a purchase.

  1. CPL: Cost Per Lead

CPL is a model of ad campaign where the business pays for leads that are delivered to them. For example, if an email address is provided by the potential customer or when someone subscribes to your blog or maybe fills a form with their personal information and so on.

  1. CPA: Cost Per Acquisition

CPA is a marketing metric that calculates the total cost of a customer completing a certain action. It specifies how much it costs to get a single customer to purchase from your business, from the initial point to the final purchase or conversion.

  1. CTR: Click Through Rate

CTR is the total number of clicks an ad has received divided by the number of times the ad has been run. This percentage measures ad engagement. A higher percentage indicates high engagement and vice-versa.

CTR percentage=((clicks/impressions) x 100)

  1. CTA: Call to Action

Call to Action is a term used in marketing that is basically understood as the next step that the business wants the audience to take post seeing their ad. Some CTAs are – Join Today, Click to Learn More, Download Now, Buy Now, Subscribe, etc.

  1. DSP: Demand Side Platform

It is a powerful marketing tool that allows advertisers to purchase high-quality traffic with the help of automation across Real Time Bidding (RTM) networks like Google.

  1. RTB: Real Time Bidding

When unsold inventory is purchased by CPM with the help of a programmatic auction, it is known as RTB. The business that bids the highest gets the priority of inventory.

  1. DMA: Designated Market Area

A geographic location that represents a targeted country, state, county, etc.

  1. IAB: Interactive Advertising Bureau

It is a business organization that is responsible for setting digital advertising standards, including ad specifications.

  1. ROS: Run of Site

When you run the ads through ROS, it means you are posting ads on a certain website.

  1. RON: Run of Network

When the ads are run through a network of channels, it is known as RON. The rotation is in the network as the publisher, or the ad may have many websites, and your ads will be published in all. These ads are not page or site-specific.

  1. SEM: Search Engine Marketing

These ads appear on Google Search, Yahoo Search, Bing Search, etc. Google offers $10k worth of free ads for all non-profit organizations.

  1. SEO: Search Engine Optimization

SEO helps in getting your website a rank/position in the Search Engines.

  1. SOV: Share of Voice

It basically calculates the percentage of your ad seen versus that of your competitors.

  1. eCP”x”: Effective Cost Per “x”

Here, x stands for any cost model used, like CPA, CPM, CPL, etc. It helps in determining the average cost of your total budget and the results accomplished.

There are many such acronyms used in the world of digital marketing. If all this doesn’t seem to fit within your forte, then let Plan D Media handle your digital marketing. We offer a range of digital services and are one of the best digital marketing agency in Kolkata. As your trusted digital marketing consultant in Kolkata, we will take care of all the digital needs of your company. Call us to learn more about our services.

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