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Marketing Glossary
The large number of acronyms and industry terms used in marketing can be very intimidating and quite overwhelming, especially for beginners. We've taken some of the most commonly encountered words and defined them for you in this glossary.
BVC – Basket Value of Conversions
Campaign – A marketing plan used to promote your product or service. Generally speaking, there are three types of campaigns: Standard, Exclusive, and Remnant. They are each described glossary below in alphabetical order.
Clicks – when a user clicks on a banner or advertisement.
COGS – Cost Of Goods Sold.
Conversions – Conversions are when a tracker tag is triggered by a user and associated with a previous action by that user.
CPA – Cost Per Action or Cost Per Acquisition. A pricing method which calculates cost based on the number of times a user takes action based on an ad (conversions).
CPC – Cost Per Click. A pricing method which calculates cost based on the number of times a user clicks on an ad.
CPD – Cost Per Day. A payment model where advertisers pay on a daily basis for their ads to be displayed on a particular website.
CPL – Cost Per Lead. A payment model determined by the number of website visitors who clicked on a particular ad. Prices range, on average, from $1-$10. AKA “pay Per lead (PPL)” or “cost Per inquiry (CPI).”
CPM – Cost Per Mille. A pricing method which calculates cost based on the number of impressions (per 1000).
CPS – Cost Per Sale. A pricing method where advertisers pay only when a visitor who has clicked through on one of their ads then goes on to generate a sale (AKA “revenue sharing”). Prices for CPS deals tend to range from $1-$25.
CPT – Cost Per Transaction. A pricing method where payment depends on a visitor generating a transaction (typically a sale, which makes CPT identical to CPS).
CPTM – Cost Per Targeted Mille (thousand) impressions. Identical to CPM except that it refers exclusively to campaigns which have been specifically targeted.
Creatives –
CSR – Click to Sales Ratio
CTR – Click-Through Rate. the number of clicks as a percentage of the number of impressions. Click-through rate (%) = Click-throughs (#) / Impressions (#) The percentage of impressions that results in a click through. For example if a banner was clicked on 87 times after being shown 1000 times, it would have a CTR or click-through rate of .087 or 8.7% (87/1000 = 0.087×100 = 8.7).
EBITA –
ECPC – Effective Cost Per Click
Calculated as: clicks ? revenue divided by clicks
ECPM – Effective Cost Per Mille (thousand). It tells a publisher what he or she would have received if they sold advertising inventory on a CPM basis.
Calculated as: views ? revenue divided by views multiplied by 1000
ECPS –
Calculated as: conversions ? revenue divided by conversions
EIPC –
Calculated as: clicks ? income divided by clicks
EIPM –
Calculated as: views ? income divided by views multiplied by 1000
EIPS –
Calculated as: conversions ? income divided by conversions
ERPC –
Calculated as: clicks ? revenue divided by clicks
ERPM –
Calculated as: views ? revenue divided by views multiplied by 1000
ERPS –
Calculated as: conversions ? revenue divided by conversions
EPC – Earnings Per Click. Calculated by dividing total click-through earnings by the number of clicks.
EPV – Earnings Per Visitor. Calculated by dividing total visitor earnings by the number of visitors.
Exclusive Contract Campaign – This refers to an advertiser requesting that their ad not be shown in rotation. This normally results in a higher fee for the publisher, because it reduces the number of ads they could otherwise show.
Impressions – when a creative is selected to display and has been successfully loaded for the user to view.
ISR – Impressions to Sales Ratio
MBA –
Mille – The term in Latin for a thousand. Often confused as short for "million" which is incorrect. Using 1,000,000 instead of 1,000 can cause huge errors in your calculations.
NIC – Number of Items in Conversions
PCs – Pending Conversions
RCPC – Revenue Cost Per Click
Calculated as: Revenue clicks ? revenue divided by clicks
Remnant Campaign –
Requests – When a request is made for the server to display a banner.
Revenue –
ROI – Return On Investment
Rotation –
Standard Contract Campaign –
Weight – An integer weight value that provides a relative weighting to other creatives. equal weighting: An ad delivery method for which the Ad Server evenly distributes impressions between ads in the line item.