Local Business Ad
Location-based AdWords ad associated with a business listing in Google Maps.
Maximum CPM bid
Your maximum CPM bid is the highest amount that you're willing to pay for each 1000 impressions on your site-targeted ad. CPM stands for cost-per-thousand impressions
Minimum CPC bid
A minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality (or Quality Score). The minimum bid is usually the least amount you can pay per click in order for your keyword to show ads.
Multivariate Testing
Multivariate testing is a method of experimentation that allows you to test multiple variables simultaneously. For example, using multivariate testing, you could identify the headline, image, and promo text on a page as your page sections, and then create three different variations for each one. When the experiment was running on your page, a user might see Headline A, Image B, and Promo Text C all together, or Headline B, Image C, and Promo Text A.
Optimization
Optimization is the process of modifying your ad campaigns to improve the quality and performance of your AdWords ads. This often involves changing the contents and settings of your campaigns and ad groups, and editing your keyword lists and landing pages.
Play Rate
The play rate column in your video ad reports indicates the number of plays your video receives divided by the number of times your video ad is shown (impressions).
Position Preference
Position preference lets you tell Google which ad position you like best for your ad among all the AdWords ads on a given page. If you find that your ad gets the best results when it is ranked (for example) third or fourth among all AdWords ads, you can set a position preference for those spots. Separate position preferences can be set for any or all of the keywords in your campaign
Quality Score
Quality Score is the basis for measuring the quality and relevance of your ads and determining your minimum CPC bid for Google and the search network. This score is determined by your keyword's clickthrough rate (CTR) on Google, and the relevance of your ad text, keyword, and landing page.
Reach
The total number of unique users who will be served your ad over a specific period of time. Reach is often expressed as a percent of the universe for the demographic category. Also known as an unduplicated audience.
Return on Investment (ROI)
Return on investment (known as ROI) is the ratio of the cost of advertising relative to the profit generated from conversions such as sales or leads. Your ROI indicates the value to your business gained in return for the cost of your ad campaign
Happy go lucky
Thursday, May 24, 2007
Wednesday, May 23, 2007
Search Engine Jargons- Vol:-5
Frequency
The average number of times a unique user saw your ad over a given time period.
Google AdSense
Google AdSense delivers text-based Google AdWords ads that are relevant to what visitors see on website pages - and Google pays web publishers for it. Google AdSense is for web publishers who want to make more revenue from advertising on their site while maintaining editorial quality.
Google AdWords
Google's advertising program based on cost-per-click pricing.
Image Ads
Graphical AdWords ads appearing on select content sites in the Google Network
Impression
The number of impressions is the number of times an ad is displayed on Google or on sites or products in the Google Network.
Invalid Clicks
Clicks that Google does not charge to your account because we determine they were generated by prohibited methods. Examples of invalid clicks may include repeated manual clicking or the use of robots, automated clicking tools, or other deceptive software
Impression Share
Impression share is a new metric that represents the percentage of times your ads were shown (i.e. your accrued impressions) out of the total number of page impressions (i.e. pages where your ad appeared or could have appeared) in the market you were targeting.
Keyword
The keywords you create for a given ad group are used to target your ads to potential customers.
For example, if you deliver fresh flowers, you can use 'fresh flower delivery' as a keyword in your AdWords campaign. When a Google user enters 'fresh flower delivery' in a Google search, your ad could appear next to the search results. In addition, your ad can appear on sites in the Google Network that relate to your keyword.
Keyword Status
Keyword status reflects whether your keyword is eligible to enter the ad auction and trigger ads. The keyword states below may affect any keyword except a negative keyword.
Landing Page
An active web page where customers will 'land' when they click your ad. The web address for this page is often called a 'destination URL' or 'clickthrough URL.'
The average number of times a unique user saw your ad over a given time period.
Google AdSense
Google AdSense delivers text-based Google AdWords ads that are relevant to what visitors see on website pages - and Google pays web publishers for it. Google AdSense is for web publishers who want to make more revenue from advertising on their site while maintaining editorial quality.
Google AdWords
Google's advertising program based on cost-per-click pricing.
Image Ads
Graphical AdWords ads appearing on select content sites in the Google Network
Impression
The number of impressions is the number of times an ad is displayed on Google or on sites or products in the Google Network.
Invalid Clicks
Clicks that Google does not charge to your account because we determine they were generated by prohibited methods. Examples of invalid clicks may include repeated manual clicking or the use of robots, automated clicking tools, or other deceptive software
Impression Share
Impression share is a new metric that represents the percentage of times your ads were shown (i.e. your accrued impressions) out of the total number of page impressions (i.e. pages where your ad appeared or could have appeared) in the market you were targeting.
Keyword
The keywords you create for a given ad group are used to target your ads to potential customers.
For example, if you deliver fresh flowers, you can use 'fresh flower delivery' as a keyword in your AdWords campaign. When a Google user enters 'fresh flower delivery' in a Google search, your ad could appear next to the search results. In addition, your ad can appear on sites in the Google Network that relate to your keyword.
Keyword Status
Keyword status reflects whether your keyword is eligible to enter the ad auction and trigger ads. The keyword states below may affect any keyword except a negative keyword.
Landing Page
An active web page where customers will 'land' when they click your ad. The web address for this page is often called a 'destination URL' or 'clickthrough URL.'
Search Engine Jargons- Vol:-4
Channel
A network or service advertisers use to create online advertisements to be displayed on search engines or other webpages. Google AdWords is a channel. Channels are identified as PPC (pay-per-click) or non-PPC
Channel Campaign
A shell, or mock, campaign created specifically in your AdWords account to track the ROI (return on investment) and other advertising information for one or more of your ads running on a non-AdWords channel. Channel campaigns usually include one destination URL and one or more keywords.
Contextual Advertising
Google leverages our award-winning search technology to deliver relevant AdWords ads to content pages of sites and products in the Google Network. Our technology draws upon our understanding of the billions of pages in our search index and our ability to crawl web pages to figure out which keywords would lead a user to the page. Then, we match ads to the page based on those keywords
Conversion Page
The conversion page is the page that, when reached by a user, means business results for you. Depending on your type of site, it may be the page where a user will complete a purchase or fill out an interest form.
Conversion Rate
Your conversion rate is the number of conversions divided by the number of ad clicks. Conversions are only counted on Google and some of our Google Network partners. Using Website Optimizer, you'll be trying to increase your conversion rate and therefore improve your return on investment
Conversion Types
The type (purchase/sale, signup, page view, or lead) recorded in the generated code, allowing you greater specificity in your conversion statistics.
Cross-channel Conversion Tracking
A tool to analyze all your online advertising channels - such as search, email, or banner ads - through your AdWords account.
Daily Budget
The amount you're willing to spend on a specific AdWords campaign each day.
Destination URL
The destination URL is the exact URL within your website that you want to send users to from your ad.
Display URL
This is the URL displayed on your ad to identify your site to users
Double Serving
Displaying more than one ad for the same company or person at a time
A network or service advertisers use to create online advertisements to be displayed on search engines or other webpages. Google AdWords is a channel. Channels are identified as PPC (pay-per-click) or non-PPC
Channel Campaign
A shell, or mock, campaign created specifically in your AdWords account to track the ROI (return on investment) and other advertising information for one or more of your ads running on a non-AdWords channel. Channel campaigns usually include one destination URL and one or more keywords.
Contextual Advertising
Google leverages our award-winning search technology to deliver relevant AdWords ads to content pages of sites and products in the Google Network. Our technology draws upon our understanding of the billions of pages in our search index and our ability to crawl web pages to figure out which keywords would lead a user to the page. Then, we match ads to the page based on those keywords
Conversion Page
The conversion page is the page that, when reached by a user, means business results for you. Depending on your type of site, it may be the page where a user will complete a purchase or fill out an interest form.
Conversion Rate
Your conversion rate is the number of conversions divided by the number of ad clicks. Conversions are only counted on Google and some of our Google Network partners. Using Website Optimizer, you'll be trying to increase your conversion rate and therefore improve your return on investment
Conversion Types
The type (purchase/sale, signup, page view, or lead) recorded in the generated code, allowing you greater specificity in your conversion statistics.
Cross-channel Conversion Tracking
A tool to analyze all your online advertising channels - such as search, email, or banner ads - through your AdWords account.
Daily Budget
The amount you're willing to spend on a specific AdWords campaign each day.
Destination URL
The destination URL is the exact URL within your website that you want to send users to from your ad.
Display URL
This is the URL displayed on your ad to identify your site to users
Double Serving
Displaying more than one ad for the same company or person at a time
Monday, May 21, 2007
Search Engine jargons - Vol.3
Account Activation
After signing up for AdWords, you will receive an email to verify your email address. You can then activate your account by logging in and submitting your credit card information. At that point, your ads start running
Activation Fee
A one-time fee applies when you activate your account. This amount is not credited toward the cost of clicks received
Activity
The Activity column of your Billing Summary page contains a list of charges and payments for the relevant time period. Fees and adjustments will also be included in this column.
Ad Group
An ad group contains one or more ads which target one set of keywords or sites. You set a bid (or price) for all the keywords or sites in the ad group. This is called a cost-per-click (CPC) or cost-per-thousand impressions (CPM) bid. You may also set prices for individual keywords or sites within the ad group.
Ad Rank/Positioning
A keyword-targeted ad's position is based on its Ad Rank, which is determined by your keyword or ad group's cost-per-click (CPC) bid times the matched keyword's Quality Score. For the top positions above Google search results, your ad's actual CPC is used instead of its CPC bid to determine its position.
Ad Scheduling
Ad scheduling lets AdWords users control the days and times their ad campaigns appear. Ad scheduling can be enabled for any AdWords Standard Edition campaign. Users may also choose an advanced mode, which allows them to raise or lower their bids for a campaign at certain times of the day.
Ad Serving
Ad serving is how often active ads within an ad group show in relation to one another. You can have one of the following two ad serving settings in your ad group
Ad Variations
Ad variations are multiple versions of an ad for a single product or service, all based on the same set of keywords. Variations are a good way to test many versions of the same message to see which works best with potential customers.
Affiliate
An affiliate is an individual advertiser or website owner who has a business relationship with a merchant to promote the merchant's product or service. The affiliate earns a small commission from the merchant for each referral that results in a sale; the merchant handles payment and fulfillment.
Average value
The total value of all conversions divided by the total number of conversions
After signing up for AdWords, you will receive an email to verify your email address. You can then activate your account by logging in and submitting your credit card information. At that point, your ads start running
Activation Fee
A one-time fee applies when you activate your account. This amount is not credited toward the cost of clicks received
Activity
The Activity column of your Billing Summary page contains a list of charges and payments for the relevant time period. Fees and adjustments will also be included in this column.
Ad Group
An ad group contains one or more ads which target one set of keywords or sites. You set a bid (or price) for all the keywords or sites in the ad group. This is called a cost-per-click (CPC) or cost-per-thousand impressions (CPM) bid. You may also set prices for individual keywords or sites within the ad group.
Ad Rank/Positioning
A keyword-targeted ad's position is based on its Ad Rank, which is determined by your keyword or ad group's cost-per-click (CPC) bid times the matched keyword's Quality Score. For the top positions above Google search results, your ad's actual CPC is used instead of its CPC bid to determine its position.
Ad Scheduling
Ad scheduling lets AdWords users control the days and times their ad campaigns appear. Ad scheduling can be enabled for any AdWords Standard Edition campaign. Users may also choose an advanced mode, which allows them to raise or lower their bids for a campaign at certain times of the day.
Ad Serving
Ad serving is how often active ads within an ad group show in relation to one another. You can have one of the following two ad serving settings in your ad group
Ad Variations
Ad variations are multiple versions of an ad for a single product or service, all based on the same set of keywords. Variations are a good way to test many versions of the same message to see which works best with potential customers.
Affiliate
An affiliate is an individual advertiser or website owner who has a business relationship with a merchant to promote the merchant's product or service. The affiliate earns a small commission from the merchant for each referral that results in a sale; the merchant handles payment and fulfillment.
Average value
The total value of all conversions divided by the total number of conversions
Search Engine jargons - Vol.2
Ad: The text to support a search result after a user queries a term.
Advertiser: A person or company who wants to publicize the qualities of their product, service, business, or event in order to encourage people to buy or use it.
Algorithm: A set of rules that a search engine uses to rank the listings contained within its index, in response to a particular query.
Beta Site: Refers to the adCenter Beta Site.
Choices: Refers to various options for advertisers to choose from in their Content Ads settings—choices delivers advertiser control.
Click through rate (CTR): The percentage of those clicking on a link out of the total number who see the link.
Content-targeted advertising or contextual advertising: Based on keywords and phrases, contextual ads will appear on Web pages that have relevant content to those keywords and phrases.
Content Ads: Microsoft adCenter’s contextual advertising product.
Conversion Rate: The relationship between visitors to a website and actions considered to be a "conversion," such as a sale or request to receive more information. Often expressed as a percentage.
Cost per click (CPC): A system where an advertiser pays an agreed amount for each click that someone makes on a link leading to their website.
CPC: Cost-per-click, advertiser only pays when the consumer clicks on their ad.
Crawler: A component of a search engine that gathers listings by automatically crawling the web. A search engine's crawler (also called a spider or robot) follows links to web pages. It makes copies of the web pages found and stores these in the search engine's index.
Distribution Method: The method by which adCenter distributes or targets ads to a specific Web page (either search or content).
Keywords: Query terms that a user enters into the search field.
Metatags: Information placed in a web page not intended for users to see, which typically passes information to search engine crawlers, browser software, and some other applications.
Metadescription Tag: Allows page authors to say how they would like their pages described when listed by search engines. Not all search engines use the tag.
Microsoft adCenter: The Search advertising tool from Microsoft that allows you to bid on keywords to expose your business to the Live Search audience.
Migration: Term to use in reference to advertiser “migration” to the adCenter Beta site.
On-network: Ads will be shown on a company’s network of Web properties. For example, with Content Ads, the ads will run on the MSN network.
Off-network: Ads will be shown on other Web site networks other than the MSN network. The term generally means “publishers”.
Organic Listings: Listings that search engines do not sell (also referred to as natural or algorithmic listings).
Paid Inclusion: Advertising program where pages are included in a search engine's index in exchange for payment, although there is no guarantee of ranking well. Marketers pay to be included in the directory, on a CPC basis or per URL fee basis, with no guarantee of specific placement.
Pay-Per-Click (PPC): See Cost per click.
Paid Listings: Listings that search engines sell to advertisers, usually through paid placement or paid inclusion programs. In contrast, organic listings are not sold.
Parameter: Words that are "plugged in" to an ad title or description at display time to customize the ad in response to a search query.
Pay-for-Performance (P4P): Term popularized by some search engines as a synonym for pay-per-click, stressing to advertisers that they are only paying for ads that perform in terms of delivering traffic measured by clicks.
Publisher: A person or company that publishes online Web site and content.
Query: A request for information.
Rank: How well a particular web page or website is listed in search engine results.
Return on Investment (ROI): Refers to the percentage of profit or revenue generated from a specific activity.
Search advertising: Based on keywords and phrases, search ads appear on the Search Results page.
Search Engine Marketing (SEM): The act of marketing a website via search engines - whether this be improving rank in organic listings, purchasing paid listings or a combination of these - and other search engine-related activities.
Search Engine Optimization: The act of altering a website to improve search engine listings.
Upgrade: Advertisers are upgraded to Content Ads—in that they have access to expanded distribution options.
Advertiser: A person or company who wants to publicize the qualities of their product, service, business, or event in order to encourage people to buy or use it.
Algorithm: A set of rules that a search engine uses to rank the listings contained within its index, in response to a particular query.
Beta Site: Refers to the adCenter Beta Site.
Choices: Refers to various options for advertisers to choose from in their Content Ads settings—choices delivers advertiser control.
Click through rate (CTR): The percentage of those clicking on a link out of the total number who see the link.
Content-targeted advertising or contextual advertising: Based on keywords and phrases, contextual ads will appear on Web pages that have relevant content to those keywords and phrases.
Content Ads: Microsoft adCenter’s contextual advertising product.
Conversion Rate: The relationship between visitors to a website and actions considered to be a "conversion," such as a sale or request to receive more information. Often expressed as a percentage.
Cost per click (CPC): A system where an advertiser pays an agreed amount for each click that someone makes on a link leading to their website.
CPC: Cost-per-click, advertiser only pays when the consumer clicks on their ad.
Crawler: A component of a search engine that gathers listings by automatically crawling the web. A search engine's crawler (also called a spider or robot) follows links to web pages. It makes copies of the web pages found and stores these in the search engine's index.
Distribution Method: The method by which adCenter distributes or targets ads to a specific Web page (either search or content).
Keywords: Query terms that a user enters into the search field.
Metatags: Information placed in a web page not intended for users to see, which typically passes information to search engine crawlers, browser software, and some other applications.
Metadescription Tag: Allows page authors to say how they would like their pages described when listed by search engines. Not all search engines use the tag.
Microsoft adCenter: The Search advertising tool from Microsoft that allows you to bid on keywords to expose your business to the Live Search audience.
Migration: Term to use in reference to advertiser “migration” to the adCenter Beta site.
On-network: Ads will be shown on a company’s network of Web properties. For example, with Content Ads, the ads will run on the MSN network.
Off-network: Ads will be shown on other Web site networks other than the MSN network. The term generally means “publishers”.
Organic Listings: Listings that search engines do not sell (also referred to as natural or algorithmic listings).
Paid Inclusion: Advertising program where pages are included in a search engine's index in exchange for payment, although there is no guarantee of ranking well. Marketers pay to be included in the directory, on a CPC basis or per URL fee basis, with no guarantee of specific placement.
Pay-Per-Click (PPC): See Cost per click.
Paid Listings: Listings that search engines sell to advertisers, usually through paid placement or paid inclusion programs. In contrast, organic listings are not sold.
Parameter: Words that are "plugged in" to an ad title or description at display time to customize the ad in response to a search query.
Pay-for-Performance (P4P): Term popularized by some search engines as a synonym for pay-per-click, stressing to advertisers that they are only paying for ads that perform in terms of delivering traffic measured by clicks.
Publisher: A person or company that publishes online Web site and content.
Query: A request for information.
Rank: How well a particular web page or website is listed in search engine results.
Return on Investment (ROI): Refers to the percentage of profit or revenue generated from a specific activity.
Search advertising: Based on keywords and phrases, search ads appear on the Search Results page.
Search Engine Marketing (SEM): The act of marketing a website via search engines - whether this be improving rank in organic listings, purchasing paid listings or a combination of these - and other search engine-related activities.
Search Engine Optimization: The act of altering a website to improve search engine listings.
Upgrade: Advertisers are upgraded to Content Ads—in that they have access to expanded distribution options.
Saturday, May 19, 2007
Search Engine jargons - Vol.1
Click-through rate
Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.
Banner ad click-through rates have fallen over time, often measuring significantly less than 1%. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.
CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.
Pay per click
Pay per click (PPC) is an advertising technique used on websites, advertising networks, and search engines.
Advertisers bid on "keywords" that they believe their target market (people they think would be interested in their offer) would type in the search bar when they are looking for their type of product or service. For example, if an advertiser sells red widgets, he/she would bid on the keyword "red widgets", hoping a user would type those words in the search bar, see their ad, click on it and buy. These ads are called "sponsored links" or "sponsored ads" and appear next to and sometimes above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad.
Cost Per Mille
CPM Cost Per Mille or cost ‰ or Cost per thousand or cost per mille (abbreviated as CPT or, more commonly, CPM). In Latin mille means thousand, therefore, CPM means cost per thousand. CPM is a commonly used measurement in advertising. Radio, television, newspaper, magazine and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.
Calculation
An example of computing the CPM:
1. Total cost for running the ad is $15,000.
2. The total audience is 2,400,000 people.
3. The CPM is computed as CPM = ($15,000 x 1000)/2,400,000 = $6.25
4. CPM can also be calculated as CPM = $15,000/(2,400,000/1000) = $6.25
Effective Cost Per Mille
Effective Cost Per Mille or eCPM (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. It means the cost of every 1,000 ad impressions shown.
CPM is considered the optimal form of selling online advertising from the publisher's point of view. A publisher gets paid every time an ad is shown.
eCPM is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).
CPA as "Cost Per Action"
CPA is considered the optimal form of buying online advertising from a direct response advertiser's point of view. An advertiser only pays for the ad when an action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be performed is determined by the advertiser.) Google has incorporated this model into their Google AdSense offering while eBay has recently announced a similar pricing called AdContext.
A related term, effective Cost Per Action, is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPM, or CPT basis.
The CPA can be determined by different factors, depending where the online advertising inventory is being purchased.
CPA as "Cost Per Acquisition"
CPA is sometimes referred to as "Cost Per Acquisition", which has to do with the fact that most CPA offers by advertisers are about acquiring something (mostly new customers, prospects or leads). Using the term "Cost Per Acquisition" instead of "Cost Per Action" is not incorrect. It is actually more specific. "Cost Per Acquisition" is included in "Cost Per Action", but not all "Cost Per Action" offers can be referred to as "Cost Per Acquisition".
Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.
Banner ad click-through rates have fallen over time, often measuring significantly less than 1%. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.
CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.
Pay per click
Pay per click (PPC) is an advertising technique used on websites, advertising networks, and search engines.
Advertisers bid on "keywords" that they believe their target market (people they think would be interested in their offer) would type in the search bar when they are looking for their type of product or service. For example, if an advertiser sells red widgets, he/she would bid on the keyword "red widgets", hoping a user would type those words in the search bar, see their ad, click on it and buy. These ads are called "sponsored links" or "sponsored ads" and appear next to and sometimes above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad.
Cost Per Mille
CPM Cost Per Mille or cost ‰ or Cost per thousand or cost per mille (abbreviated as CPT or, more commonly, CPM). In Latin mille means thousand, therefore, CPM means cost per thousand. CPM is a commonly used measurement in advertising. Radio, television, newspaper, magazine and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.
Calculation
An example of computing the CPM:
1. Total cost for running the ad is $15,000.
2. The total audience is 2,400,000 people.
3. The CPM is computed as CPM = ($15,000 x 1000)/2,400,000 = $6.25
4. CPM can also be calculated as CPM = $15,000/(2,400,000/1000) = $6.25
Effective Cost Per Mille
Effective Cost Per Mille or eCPM (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. It means the cost of every 1,000 ad impressions shown.
CPM is considered the optimal form of selling online advertising from the publisher's point of view. A publisher gets paid every time an ad is shown.
eCPM is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).
CPA as "Cost Per Action"
CPA is considered the optimal form of buying online advertising from a direct response advertiser's point of view. An advertiser only pays for the ad when an action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be performed is determined by the advertiser.) Google has incorporated this model into their Google AdSense offering while eBay has recently announced a similar pricing called AdContext.
A related term, effective Cost Per Action, is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPM, or CPT basis.
The CPA can be determined by different factors, depending where the online advertising inventory is being purchased.
CPA as "Cost Per Acquisition"
CPA is sometimes referred to as "Cost Per Acquisition", which has to do with the fact that most CPA offers by advertisers are about acquiring something (mostly new customers, prospects or leads). Using the term "Cost Per Acquisition" instead of "Cost Per Action" is not incorrect. It is actually more specific. "Cost Per Acquisition" is included in "Cost Per Action", but not all "Cost Per Action" offers can be referred to as "Cost Per Acquisition".
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