Different acronyms, terms, and sometimes abbreviations are used widely in the marketing and advertising world. These could sometimes be confusing, especially to someone who is new around in this field. Let us walk you to what each stands for and what it means.
1. A/B Testing
A/B testing is a method of comparing two variations of a marketing asset to check which one performs better, provides more profit, or targets the goal.
2. Ads: Advertisements
Ads stand to all types of advertisements whether display, video, or native.
3. B2B: Business-to-Business
B2B is a marketing strategy where businesses and organizations exchange products, goods, and services.
4. B2C: Business-to-Consumer
B2C is a marketing strategy where businesses and organizations sell their products, goods, and services directly to the consumers.
5. Bounce Rate
Bounce rate measures the number of users who view only one page on a website and exit without visiting any other page on that site.
6. CPA: Cost Per Acquisition or Cost Per Action
CPA means paying for ads if either they lead to a sale or to a specific action defined by the advertiser, such as donating to a nonprofitable organization, signing up for a newsletter, or downloading an app.
CPA formula: CPA= Advertising Cost / Number of Acquisitions or Actions Made
7. CPC: Cost Per Click
CPC is the actual price an advertiser pays to a publisher for each click on an ad in a campaign.
CPC formula: CPC = Advertising Cost / Number of Clicks
8. CPL: Cost Per Lead
CPL is when an advertiser pays a publisher or an affiliate when a lead form is completed and submitted.
9. CPM: Cost Per Thousand Impressions
CPM is the cost an advertiser pays to a publisher for every 1000 times an ad loads to a page.
CPM formula: CPM = (Advertising Cost / Total Impressions) x 1000
10. CTA: Call to Action
CTA is what you want the user to do next after seeing your ad; this can include “Complete a Survey”, “Watch Video”, “Buy Now”, or “Donate”.
11. CTR: Click Through Rate
CTR is the percentage of viewers who click on an ad after seeing the ad.
CTR formula: CTR = (Clicks / Impressions) x 100
12. DMA: Designated Market Area
DMA is the geographic location representing a region, country, state, or area where the advertiser chooses to target.
13. DSP: Demand Side Platform
DSP is a type of software that lets advertisers buy digital ad inventory in an automated manner.
14. IAB: Interactive Advertising Bureau
IAB is a business organization that closely works with publishers and sets the standards for the digital advertising industry.
15. KPI: Key Performance Indicators
KPI is a system to measure performance of a business in terms of achieving its marketing objectives and goals.
16. PPC: Pay Per Click
PPC is a pricing model an advertiser pays to a publisher each time a user clicks on the ad. It is linked with CPC (Cost Per Click).
17. PPV: Pay Per View
PPV is when an advertiser pays to a publisher when a user loads and views an ad which is automatically loaded for a certain time.
18. RON: Run of Network
RON is an online advertising campaign where a publisher allows ads to run on a specific network of many websites.
19. RTB: Real Time Bidding
RTB is a way of buying and selling ads per CPM in an instant programmatic auction.
20. SEM: Search Engine Marketing
SEM is a digital marketing form that increases the visibility of websites or ads in search engine result pages.
Finally, you might be wondering what ad-ing-s stand for? Well, I have created this one and it stands for adding ads – adding profits 😊!