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Jargon Buster – Part 2

In part one of Jargon Buster – we introduced you to eight advertiser/marketing terms and explained their meaning. In part two we reveal the final eight common terms that will hopefully help you to navigate through the lingo like a pro. Some of the terms below are metrics used to measure online advertising, and others are types of digital advertising that you will no doubt have come across.

CPM: Cost Per Mille – is the cost per thousand advertising impressions. Display advertising is commonly bought on a CPM, with advertisers paying publishers a set amount for every 1,000 views of their ad.

Programmatic Buying: Programmatic buying – involves computerized, algorithm-driven trading that allows for quick buying of ad impressions according to pre-set parameters. (Business Insider)

MPU:  A Mid Page Unit – is an online advert that usually sits within online editorial content. The idea behind an MPU is that because it sits right in the middle of the content being viewed, it’s more likely to be read. It may also be more likely to compromise the content because the reader may find it distracting or invasive.

Pre Roll: Pre Roll – is a promotion or video advertisement that is played before the content the user has selected to view. These can usually be skipped after 5 seconds but can last up to 3-4 minutes.

RTB: Real Time Bidding – is a style of programmatic buying in which digital advertising opportunities are auctioned off in real-time. (Business Insider)

DMP: Data Management Platform – allows you to compare your first party data with third party data to help make more informed and strategic media buying and campaign building decisions.

Bounce Rate: Bounce rate – is an important element in identifying what content is working for you and what isn’t. A bounce occurs when someone clicks on your ad and then closes again without taking any further action. For example, you may have a well written ad that links to irrelevant content, or takes the viewer to entirely the wrong page. Because the viewer hasn’t been taken where they expected to go, they will likely click off, registering a bounce.

Native Advertising:  is advertising content within a website that looks and feels natural in its format and style. The advertising is valuable and contextual to the point that it exists as part of the content, not separate from it. There are many views and interpretations of the native advertising buzzword and how it’s being implemented across content platforms.

So there you have it, 16 mind boggling terms have hopefully been made clearer.

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Posted by simonholliday in Coull resources

Jargon Buster – Part One

I was recently out with a friend who asked about what my work involves. I tried not to get carried away with my answer, but you know how it is, you start talking about your day, delve into the details of what you do and find the person you’re chatting to completely lost in translation.

I realized that it’s very easy to get immersed in the online video advertising/marketing industry and forget that people aren’t accustomed to the terminology used. Just as the scientific terms for some things seem unnecessarily complicated, marketing lingo could also be made more transparent.

I thought I would take this opportunity to explain some of the jargon used in advertising to make it easier for those unfamiliar with the nuances of its syntax, to participate in meetings and decipher reports etc.

Example of a marketing mumbo jumbo sentence:

So if we run this £50K CPV/CPA hybrid distribution campaign using our current 7% CTR, your current 5.4% conversion rate and AOV of £50 we could look to generate 500k views and accumulate ROI of around £94.5K.

Layman’s terms:

So if we run this campaign with an investment of £50K we can expect a return of £94,500. CPV (cost per view)/CPA (cost per acquisition) means you will pay the publisher every time someone views your advertisement and every time someone carries on to become a customer. Based on your current website performance and given an average order value of £50 for purchases made through your site, this return on investment is realistic.

The breakdown

The following is the first of a two part, term by term introduction to help you understand some of the key words and abbreviations that make up the mumbo jumbo – here are eight to get you warmed up:

Impression: This seems straightforward enough but it’s worth explaining as many metrics are calculated based on impressions. An impression occurs every time an ad is loaded on a page. No click is required to register an impression.

CPA: Cost per acquisition/action – is the price the advertiser pays the publisher every time a consumer buys a product after clicking through the advertisement on the publisher’s site. This could either be a percentage or a flat rate. Everyone wants leads but how much each lead costs the company or individual is measured using the CPA.

CPC: Cost per click – is what an advertiser pays to a publisher every time a user clicks on the advertiser’s ad on the publisher’s site (also known as PPC – Pay Per Click).

CPI: Cost per install – is what an advertiser pays every time a user installs their program after clicking the ad link on a publisher’s page.

CPL: Cost per lead – is what an advertiser pays to a publisher when a customer completes an action/becomes a lead (such as filling in a questionnaire/ signing up to a newsletter) from the publisher’s website (similar to cost per action).

CPV: Cost per view – is the price the advertiser pays the publisher every time a consumer views their content. A view doesn’t guarantee a conversion but with this model the advertiser is paying for brand exposure.

CTA: Call to action – is a link or phrase which promotes a desired action within an advertiser’s content often in the form of a button. The CTA tells the viewer what to do next and helps them navigate toward a conversion. If you’ve ever clicked on part of a website to download content, sign up to a newsletter or enter your details – you’ve been ‘called to action’.

CTR: Click through rate – is the number of impressions a link or advertisement has divided by the number of times it registers a click.  An advertisement may appear thousands of times, but that doesn’t necessarily help unless the user engages. This starts with a click.

Tip of the iceberg

There are of course many other terms and acronyms used to describe online advertising metrics and methods, some of which will be divulged in further detail in the coming weeks. I hope this first introduction is helpful and will allow you to start deciphering reports that perhaps once looked more like hieroglyphics.

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Posted by simonholliday in Coull resources