WHY TARGETING SMART
DIGITAL AD TERMINOLOGY
Unlock the Power of Digital Ads: Key Terms You Need to Know for Successful Online Advertising Strategy Development.
"You Can Only Expect What You Inspect"
Unlock the power of digital advertising! Before diving in, let's break down some key terms used by ad agencies and marketers. Understanding this lingo will equip you to create effective campaigns that reach the right audience and achieve your goals.
- Reach – The total number of consumers in the target audience
- Impression – When a digital ad is shown to a consumer.
- Frequency – The number of digital ads shown to each consumer.
- Click – When the consumer clicks the digital ad and enters the conversion funnel.
- Action – When the consumer completes the desired action of the digital ad (sale, opt-in for email, register, download, etc.)
- Conversion Rate – The percentage of consumers who go through the conversion funnel and complete an action.
- Cost-per-mille (CPM) – The cost of having a digital ad shown to a consumer.
- Click-thru-rate (CTR) – The percentage of consumers who clicked on a digital ad and reached an online property.
- Cost-per-click (CPC) – The amount of money spent to get a click on an ad.
- Cost-per-action (CPA) – The amount of money which is required to make a conversion from a digital advertisement.
Key definitions, reach, frequency & impressions.
Here’s a simplified breakdown:
- Reach: how many unique targeted people to see your ad
- Frequency: how many times those people see your ad
- Impressions: total views on your ad or piece of content
For example, if your reach is 100 (people), and your set frequency is 20, you can assume everyone saw it 20 times (for a total of 2,000 ads delivered).