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Here is a glossary of Internet Marketing terms to help guide you through the jargon.
Advertising Network: A group of Web sites which share a common
banner server. Typically a sales organization which manages the
commerce and reporting. An ad network has the ability to deliver
unique combinations of targeted audiences because they serve your
banner or ad across multiple sites.
Ad View: An ad view, synonymous with ad impression, is a
single ad that appears (usually in full view without scrolling)
on a Web page when the page arrives at the viewer’s display.
Ad views are what most Web sites sell or prefer to sell. A Web page
may offer space for a number of ad views. In general, the term impression
is more commonly used.
Affiliate Marketing: Affiliate marketing is the use by a
Web site that sells products of other Web sites, called affiliates,
to help market the products. Amazon.com, the book seller, created
the first large-scale affiliate program and hundreds of other companies
have followed since.
Bandwidth: The amount of information that can be transmitted
over communications lines at one time. The higher the bandwidth,
the faster the Web page loads. Limited bandwidth is the main reason
for keeping pictures small. Just as it seems we will never have
fast enough computers, it feels like we will never have enough bandwidth.
The amount of research and development money being thrown at this
problem should yield surprising results before long.
Berners-Lee, Tim: The original designer of world wide web
software at CERN, in Geneva, Switzerland, in 1990, Tim Berners-Lee
put his creation on the internet the following year. While others
reap millions from the web, he receives only accolades. 'If I tried
to cash in, there might not be a web as we know it.' He is now at
MIT guiding the World Wide Web Consortium, which includes over 120
companies.
Click: According to ad industry recommended guidelines from
FAST, a click is 'when a visitor interacts with an advertisement.'
This does not apparently mean simply interacting with a rich media
ad, but actually clicking on it so that the visitor is headed toward
the advertiser’s destination. (It also does not mean that the
visitor actually waits to fully arrive at the destination, but just
that the visitor started going there).
Clickstreams: The electronic path a user takes while navigating
from site to site, and within site, from page to page.
ClickThrough: The act of clicking on a banner or other ad,
which takes the user through to the advertiser's Web site. Used
as a counter point to impressions to judge the response-inducing
power of the banner.
ClickThrough Rate (CTR): The response rate of an online advertisement,
typically expressed as a percentage and calculated by taking the
number of clickthroughs the ad received, dividing that number by
the number of impressions and multiplying by 100 to obtain a percentage:
Example: 20 clicks / 1,000 impressions = .02 x 100 = 2% CTR
CPA - Cost Per Action: The price paid by an advertiser for
each 'action' that a content site delivers. 'Action' may be a sale,
a lead, a successful form fill-out, a download of a software program
or an e-commerce sale of a product. Both the action, price and terms
of a CPA purchase are mutally agreed upon by the advertiser and
content site and such a purchase typically involves a back end tracking
system provided by the advertiser that allows the content site to
view clicks and actions every 24 hours if they choose to do so.
CPC - Cost Per Click: The price paid by an advertiser to
a content site. When buying on a Cost Per Click model, the advertiser
and content site have mutually agreed that the content site will
continue to display the advertiser’s ad creative until X number
of clicks have been delivered - the amount purchased. As with other
forms of online advertising, is dependent on content, audience reached
and targeted delivery - Untargeted being lower priced, targeted
to an affluent audience being at the high end of the rate scale.
CPM - Cost Per Thousand (Roman Numeral) Impressions: The
price paid by an advertiser for a content site displaying their
banner 1,000 times.
CPS - Cost Per Sale: The price paid by an advertiser to a
content site for each sale that results from a visitor who is referred
from the content site to the advertiser’s site. This type of
buying model is typically tracked with cookies, where the cookie
is offered on the content site and read on the advertiser’s
site at the success page after successful completion of one transaction/sale.
Typical rates/bounties range between 5% and 25% of the retail price
of the product or service being sold. See also CPA above.
Cookies: Client-side text file that is used by Web servers
to store information about the site visitor and visitor behavior.
Information pertaining to a site can only be read by the side that
wrote the information. Used to identify repeat visitors and track
visitor behavior.
Effective Frequency: The number of times an ad should be
shown to one person to realize the highest impact of the ad without
wasting impressions on that individual.
Frequency: The number of times a given person will see an
ad in a given time period.
Gross Exposures/Gross Impressions: The total number of times
an ad is shown, including duplicate showings to the same person.
Hits: Every time a file is sent by a server, be it text,
graphic, video, and so on, it is recorded as a hit. Not a reliable
gauge to compare different sites, as one page with five graphic
elements will register six hits when viewed, while a page with no
graphics will only register one hit.
Impression: The Opportunity To See (OTS) a banner or other
ad by a surfer. When a page that includes a banner is viewed, it
is considered an impression.
Inventory: The amount of available space for banners on a
Web site that can be delivered in a given time period. Also known
as the amount of gross impressions per month (or clicks if the publishers
is selling on a Cost Per Click rate model) available for sale to
advertisers by a Web publisher.
Link: A hypertext connection between two documents, image
maps, graphics, and the like.
Pageview: When a Web page is requested by somebody through
a browser. Pageviews are often used to track the number of impressions
a banner gets.
Run-of-Network: A run-of-network ad is one that is placed
to run on all sites within a given network of sites. Ad sales firms
such as Latitude90 handle run-of-network insertion orders in such
a way as to optimize results for the buyer consistent with higher
priority ad commitments.
Run-of-Site: A run-of-site ad is one that is placed to rotate
on all non-featured ad spaces on a site. CPM rates for run-of-site
ads are usually less than for rates for specially-placed ads or
sponsorships.
Spam: Originally posting an ad to multiple newsgroups, now
used to describe unsolicited email advertising. Named after a skit
by Monty Python, spam is one marketing and advertising technique
to avoid at all costs
Unique Visitor: A unique visitor is someone with a unique
address who is entering a Web site for the first time that day (or
some other specified period). Thus, a visitor that returns within
the same day is not counted twice. A unique visitors count tells
you how many different people there are in your audience during
the time period, but not how much they used the site during the
period.
View: A view is, depending on what’s meant, either an
ad view or a page view. Usually an ad view is what’s meant.
There can be multiple ad views per page views. View counting should
consider that a small percentage of users choose to turn the graphics
off (not display the images) in their browser.
Visit: A visit is a Web user with a unique address entering
a Web site at some page for the first time that day (or for the
first time in a lesser time period). The number of visits is roughly
equivalent to the number of different people that visit a site.
This term is ambiguous unless the user defines it, since it could
mean a user session or it could mean a unique visitor that day.
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