When you’re preparing to take on the task of marketing yourself, make sure that you understand the basic marketing lingo used by marketers around the world. Below, we’ll break down these terms so that they’re easier to understand and implement into your marketing strategy.
This term is short for “ad campaign.”
When running an advertising campaign online, you can do this in a number of ways, and on a number of different platforms. The two main ways to run an advertising campaign are through search engine platforms such as Google Ads (or Adwords Express), and via social media advertising platforms (such as Facebook Ads, Twitter Ads, Instagram ads set up through Facebook, etc.).
This is the span of time for a given campaign (Date XX/XX/XX — Date YY/YY/YY).
The best way to determine your flight dates are to see when your users interact with your online accounts the most often, and use the data from your organic marketing data. You should be posting to social media at least 2-3 times every day for several weeks before considering when the best time to run your ads will be most effective; this not only saves you money, but it also spreads out the amount of time your ad(s) can run for the best return on investment.
This is a term to describe each instance an ad appears on a site page for a single user.
Impressions generally occur on display and text ads generated on web pages, such as those seen on blog articles (e.g., when you visited this blog, you’ve generated an impression, and the advertisers that paid for these ads you see are paying for them to be visible to you at this very moment).
This is the cost per 1,000 impressions. For example, if you want your ad to appear 700,000 times at a CPM rate of $5, the total cost will be $3,500.
The way this would break down is: 700,000 appearances ÷ 1,000 impressions = 700CPM. Then, take 700CPM x $5 = $3,500.00 in advertising costs.
As you can imagine, campaigns run through CPM models can be less effective, because what advertisers (i.e., you) really want is those who have seen your ad to click on the advertisement!
This term is an acronym for “Cost Per Click”.
CPC ends up being more expensive than CPM, but definitely more effective because once your users click on the ad you’ve published, that’s when you’re actually charged. However, this is also the moment in which your users are taken to wherever you want them to go – a sales page, your website, a store product page, and so on.
If you’ve set up your website correctly, then you should see much more ROI for CPC ads than CPM advertisements. Search engines such as Google generally run off of a CPC model, although in most instances you will also be charged for CPM.
This term stands for “share of voice.” This is the frequency in which a campaign appears on the site. Shorter campaign, more impressions = greater SOV.
Remember, most online advertising platforms run off of a bidding system. The more money you spend per click or impression, the higher rank your advertisement will be against your advertising competitors.
Having a large SOV doesn’t necessarily mean that your ad will be clicked the most, however – the best strategy is to only run ads on days and timeframes in which your users are most likely to be interested in what you’re offering.
CTR (Click-through Rate)
The CTR is the number of clicks on an advertisement, divided by total delivered impressions, expressed as a percentage (e.g., 0.10%).
Think of it this way: Susie Smith visits a blog to read an article. The very fact that she’s landed on the page which displays your ad means that she’s generated an impression of your ad. If she then is interested in your offer, she’ll click on it.
Now, if 10,000 visitors make an “impression” on your ad, but only 500 visitors actually click on it, then the CTR would be 0.05, or 5% (500 clicks ÷ 10,000 impressions = 0.05 x 100 = 5%).
This term refers to each individual reader of the site.
These visitors are generally categorized by either their IP address, the device that they’re visiting from, or both. For instance, if you have someone who lives in an apartment with WiFi and visits your website on their iPhone that’s connected to their WiFi, it will reflect as a single unique visitor. If that person then switches to their laptop connected to the same IP address, they would not be counted twice (in theory).
However, if that person visits your website from an iPhone that’s only connected to an LTE cell phone tower with its own IP address, but then switches to their laptop only connected to their WiFi network, it would most definitely be counted as two unique visitors.
For this reason, your unique visitor data should be taken with a grain of salt, and major marketing decisions should not be based solely on Unique Visitor data.
Some Things To Think About
There are a number of issues that must be considered to determine if online advertising is the right fit for your campaign. Important questions to consider include:
- What kind of traffic do you have to your site and to the page that your ad will be placed on? Can you clarify this in terms of average monthly unique visitors, average monthly visits, and average monthly page views?
- How active and engaged are these users? What is the average time spent on site, and the average page views per visit?
- Where are your readers or users located? What geographic data (via IP address) do you have to help me determine where they live?
- What other important trends with site traffic, income, and interests should I know about?
Remember that the better you understand these concepts and your audience will help you be a better marketer, and save money in the long run!
If you’re looking to start your own website or need help with marketing online but you don’t know where to begin, contact us.