Online advertising has its own unique set of terminology which it is a good idea to try and master before engaging in any negotiations.
Glossary of online advertising terms.
Ad – The term ad can refer to a banner, button, pop-up screen, etc. they are counted as either impressions or clicks.
Ad clicks – The number of times that page visitors click on an online ad over a specific period.
Ad views – The number of times a banner ad is downloaded from the ad server.
Banner ad – A small image file which will display an online advertisement, usually sized for placement at the top or bottom of a Web page. The image file will be linked to another page.
Brand equity – An immediately recognisable brand image such as Amazon.co.uk.
Click-through – A click-through is registered whenever a viewer clicks on a banner ad. A very important measurement to determine whether an ad is successfully attracting customers.
Conversion rate – The rate at which page visitors are converted from viewing an ad to performing a desirable action such as buying a product/service or registration of an e-mail address.
Cost per sale – This is the average advertising cost of making an online sale.
CPA (cost per action) – In banner advertising the CPA is the cost the advertiser pays to the site owner every time a specified visitor-initiated action occurs, such as registration or request for information.
CPC (cost per click) – In banner advertising the CPC is the cost the advertiser pays to the site owner every time a visitor clicks on one of the advertiser’s banner ads.
CPM (cost per thousand) – In banner advertising the CPM (cost per thousand impressions) is the rate that an advertiser pays for 1,000 page views, or impressions, of a banner ad. (See impression)
CTR (click-through rate) – A percentage figure based upon the number of times an advert is viewed, and the number who click on the ad, thus if a banner ad is seen by a thousand people, and ten click on the ad, then the ad has a click-though rate of 1%.
Exposures – This figure is the number of times that a viewer sees a sponsor’s ad. File size – The size of the banner image file in bytes.
Filter – This is a piece of code which processes individual, personal preferences in order to deliver relevant information to a particular end user, for example, directing e-mail to the correct recipient.
Flat fee advertising – A charging system used on very popular sites which is based upon the length of time the advert is displayed on the site, and is unrelated to the number of impressions or click-throughs that the ad banner receives.
General rotation – A system wheerby a banner ad is randomly displayed on a web site. Equivalent to run of site advertising.
GIF (graphic interchange format) – An image file format commonly used for banner ads.
Hit – A hit is registered whenever a visitor downloads a file for viewing on a browser, this download could be text, graphics, calls to CGI scripts, MIDI recordings, or QuickTime movies. Each such download from the server to the browser is registered as a hit in the server log file with that file’s path name. This means that if you download a web page which contains a the HTML page plus three images, then a total of four hits will be registered, one for the HTML page, and one hit for each image file. Hits are not a particularly good measure of how many people are visiting a site.
Hyperlink – Text or graphic link that a page viewer can click and which will transfer them to another site.
Impression (page view) – This figure denoted the number of times that an advertiser’s banner ad has been seen by viewers of the the page. Impressions, sometimes refered to as page views, describe the coomplete page of information displayed by the visitor’s browser after all the text and graphics elements have been downloaded. Approximately ten “hits” equals one page impression on average. (See Hit)
Impression totals – The total number of times that a banner ad is displayed on a Web page.
JPEG – A common image file format used in banner ads.
Media objects – Files, other than HTML documents, which can be displayed and/or executed within HTML an document, or as a stand-alone function, such as GIF and JPEG images, MIDI recordings, QuickTime movies, PDF files, and Java applets.
Page – A siingle HTML document that may contain text, images, and other online elements that can be static or dynamically generated.
Page impression – (See Impression)
Page view – (See Impression)
Qualified hits – Qualified hits exclude error messages, redirects, and requests by computer programs.
Rate card – A document containing a details of advertising charges.
Run of site advertising – The random display of a banner ad on a Web site.
Traffic – The volume of visits, impressions, and hits that a site receives. Unique users – The number of different people who visit a site within a specified period.
Visit – A request made for a page in a specified site, the user may request several more pages as they navigate through the site. However, if the user makes no further requests during a predetermined period, then the next request for a page on that site will begin a new visit.
Visitor-to-sales ratio – The number of people who have visited a site divided by the number of people who made a purchase from that site.