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8 Advertising Terms You Should Know

Navigate the world of advertising with ease.

Written By: 

Updated: 

June 17, 2022

Much like any other field of expertise, online advertising has its own set of terms. Some of these words might be new to you, but that's okay. You've done the crucial step towards enhancing your knowledge: you found yourself here on our website. Particularly, we at Evolv think that there are 8 advertising terms every business owner should know, so we'll cover these first. After this, we will discuss additional terms that advertising agencies use in their advertising campaigns.

8 Advertising Terms every Business Owner Should Know

Call to Action

C.T.A. stands for Call To Action and refers to a phrase, graphic element, or button that attempts to persuade a potential customer to do a certain action. Usually signing up or visiting a page.

Cost Per Acquisition

C.P.A. stands for Cost Per Acquisition and refers to the cost of acquiring a new lead or customer. It’s basically a financial metric used to directly evaluate the effects of marketing campaigns on revenues. It is computed by dividing the total money spent on an ad campaign by the number of clients obtained as a result of that campaign.

Cost Per Click

C.P.C. stands for Cost Per Click and refers to the amount paid by you each time a user clicks on your ad. This is more useful for search engines like google. It is computed by dividing the entire cost of a campaign by the number of clicks received.

Cost Per Mille

C.P.M. stands for Cost Per Thousand or Cost Per Mille and refers to the cost of getting your promoted content 1,000 impressions. Impressions are not unique. Because inventory is typically sold on a CPM basis, it's also utilized as a standard metric for buying display advertisements.

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Impression

An impression is gained whenever your digital ad is displayed to someone. One person can give your ad multiple impressions. This digital marketing metric also refers to the number of times an ad was served, regardless of whether the user has seen or engaged with it.

Keyword

A keyword is a specific word or phrase that people use or type in a search engine to find what it is that they are looking for. In contextual advertising, the marketer selects keywords so their ad appears on sites that are retrieved for that term. Bidding determines the position of the ad inside the search results in search advertising. The top spot is generally awarded to the highest bidder on a keyword.

Lead

Lead refers to a potential customer who is interested in your product or services. They are usually the ones who fill out forms, try to contact your store, or interact with your ads.

Reach

Reach refers to the number of unique people that your ad was served to.

You may find yourself encountering these words on advertising materials, on a marketing strategy or marketing plans, or on any other kind of advertising content. Being familiar with these terms will help you get started right in online advertising. Here are some additional terms that you may find useful as well:

Additional Terms

Affiliate Marketing

Publishers have traffic-generating websites, and advertisers want to sell their products to consumers who visit them. Affiliate marketing is a contract between a publisher and an advertiser in which the publisher gets compensated for each click and/or sale of the advertiser's goods or services. This method strays away from direct marketing styles, aiming to achieve the same effect that public relations work does.

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Analytics

This refers to information and statistics on a website's users and how they engage with it. it is a broad term for the metrics from online user behavior. Analytics may be used to discover information on how many people visit a website, how much time they spend there, and what activities they do there. This data is then utilized to target consumers, better understand consumer behavior, create more appealing marketing content, improve user experience, and optimize ad campaigns.

Bounce Rate

A bounce is a website visit in which the user looks at only one page, does not engage with it, and then leaves the site. The bounce rate is a digital marketing metric that is a proportion of total visitor sessions within a certain time frame that reflects such visits as a percentage of total visitor sessions.

Brand Awareness

The degree to which a potential customer can recall and recognize a certain product or service. One of the two traditional key aims of a digital advertising campaign is to raise brand awareness.

Channel

In advertising, a distribution channel is an outlet that advertisers utilize to reach audiences, such as direct mail or radio. Display advertising, social media advertising, and mobile app advertising are all examples of digital advertising.

Conversion Rate

Advertisers choose a certain activity (or collection of activities) that they want their target viewers to take. A conversion is recorded each time a member of the audience does this action. A conversion rate is also a digital marketing metric computed by dividing the number of views or visits by the number of form fills and expressed as a percentage.

Copy

This is the material in an advertisement or text that is designed to be read aloud. When it comes to ad text for this kind of marketing content, the best practice is to avoid using advertising jargon.

Direct Response

A campaign or commercial intended particularly to entice viewers to take rapid action. To achieve this, highly engaging online content such as video content is typically used.

Display Advertising

These kinds of digital marketing content refer to graphic adverts that are exhibited on a web page. The phrase was coined in newspapers, and the concepts still hold true today. Graphics, video content, interactive visuals (such as a quiz or game), and expandable advertising are all examples of display ads.

Email Advertising

Within emails and e-newsletters, these clickable banner advertising and links appear. Email campaigns, where one sends a form of marketing content to an email address within a set time period, fall into this category.

Frequency

This is another digital marketing metric that refers to the number of times an ad is shown to the same customer in a certain time period. Because several people can often access the Internet from the same device, frequency is determined by the number of times an ad is served to the browser of that device.

Native Advertising

Any sort of paid advertising that is indistinguishable from the channel through which it is delivered.

With these new terms in your personal lexicon, you'll be able to navigate through the world of digital advertising with great ease. Continue this new journey with more resources that we have to offer here at Evolv. We hope to hear from you soon!

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