John Murch

Basic Advertisement Glossary

02 Jun 2008
Basic Advertisement Glossary

To help kick start some eLearning] I wanted to provide visitors with a basic glossary of Advertisement jargon. I know this might come to a shock for most, but last night was the first night I signed up and used Google Adwords. So with various advertisement jargon like CPA, CPC, and CPM in my head, why not post up a glossary of terms and definitions.

Please feel free to add more in the comments, Enjoy!

Basic Advertisement Glossary

Google Adwords – A Pay Per Click contextual advertisement program which is used as the majority way to advertise online

Bounce Rate – This is the percentage and/or rate of a user who enters a web site and then leaves without viewing other pages

Conversion – This is the quantifiable goal of a website, such as clicks, sign ups, and sales.

CPA (Cost per Action) – The advertiser is paid based on a users action, such as a when a user completes a form submission.

CPC (Cost Per Click) – This is the cost (amount) of a user to click on an ad, normally used with a Pay Per Click Advertiser.

CPM (Cost Per Thousand impressions) – This is a statistical measurement used to form an average estimated value of 1000 page views. The mathematical formula is average value / cost of pay per click. The M in thousands come from the Roman numeral for one thousand.

Impression (page view) – This is when a user visits and/or views a webpage. Note: The measurement of uniques is also related to Impressions, to find the average number of page views a user visits, the mathematical formula is total impressions/uniques which gives you average impressions (page views) per users.

PPA (Pay Per Action ) – This is almost identical to a PPC (Pay Per Click) except payment is only made to the publisher if the click through results in a conversion. (See CPA)

PPC (Pay Per Click) – This is a contextual advertisement plan where advertisers pay ad agencies whenever a user clicks on their advertisement. Google Adwords is an example of PPC advertising.

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