Glossary

A/B testing, also known as split testing, is a method of comparing two or more variations of an element, such as an ad, webpage, or email, to determine which version performs better. It helps optimize campaigns by identifying the most effective elements or messages.

Ad placement refers to the specific location or position where an advertisement is displayed on a webpage, app, or other digital platform. Strategic ad placement can significantly impact visibility, user attention, and campaign performance.

A banner ad is a graphical advertisement displayed on a website or within an app. It typically contains a combination of images, text, and clickable elements. Banner ads come in various sizes and formats and are placed strategically on webpages to attract user attention and drive clicks or conversions.

Bounce rate is a metric that measures the percentage of users who visit a webpage or website but leave without interacting further or navigating to other pages. It can provide insights into the effectiveness of landing pages or user experience. The formula for bounce rate is:

Bounce Rate = (Number of Single-Page Visits / Total Number of Visits) × 100

A call-to-action is a specific instruction or prompt given to users to encourage them to take a desired action. It is typically presented as a button, link, or statement that directs users to perform an action, such as “Buy Now,” “Sign Up,” or “Learn More.”

Click-through rate is a metric that measures the percentage of people who click on a specific link or advertisement out of the total number of impressions or views it receives. The formula for CTR is: CTR = (Number of Clicks / Number of Impressions) × 100

Conversion rate is a metric that measures the percentage of users who complete a desired action (e.g., purchase, form submission) out of the total number of visitors or interactions. The formula for CR is: CR = (Number of Conversions / Number of Visitors) × 100

Conversion tracking is the process of monitoring and measuring the actions or conversions that occur as a result of an advertising campaign. It involves setting up tracking codes or pixels to track specific actions, such as purchases, form submissions, or app downloads, and attributing them to the respective advertising sources.

Cost per action is a metric that measures the average cost of acquiring a desired action, such as a sale or form submission, through a marketing campaign. The formula for CPA is: CPA = Advertising Spend / Number of Actions (e.g., sales, form submissions)

Cost per click is the average cost that an advertiser pays for each click on their ad. The formula for CPC is: CPC = Advertising Spend / Number of Clicks

Cost per lead is a metric that measures the average cost of acquiring a lead (potential customer) through a marketing campaign. The formula for CPL is: CPL = Advertising Spend / Number of Leads Generated

Cost per thousand is a pricing model in which advertisers pay for every one thousand impressions of their ad. The formula for CPM is: CPM = (Advertising Spend / Number of Impressions) × 1000

Customer lifetime value is the predicted net profit or revenue that a customer will generate over the entire duration of their relationship with a business. It helps advertisers understand the long-term value of acquiring and retaining customers. The formula for CLV is: CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan

Customer segmentation is the practice of dividing a target audience into distinct groups based on shared characteristics or behaviors. It helps advertisers tailor their messaging, offers, and targeting to specific segments, allowing for more personalized and effective marketing campaigns.

Frequency capping is a technique used to limit the number of times an ad is shown to a user within a specific timeframe. It helps prevent ad fatigue, improves user experience, and ensures that ads reach a broader audience.

Geotargeting is a targeting technique that delivers ads to users based on their geographic location. It allows advertisers to tailor their ads to specific regions, cities, or even neighborhoods, ensuring that the right audience sees the right message based on their location.

Impressions refer to the number of times an ad is displayed or shown to users. It indicates the total reach of an ad campaign but does not necessarily measure user engagement or actions.

An in-app ad refers to advertisements displayed within a mobile app. These ads can take various forms, including banners, interstitials, videos, or native ads. In-app ads allow advertisers to reach a highly engaged audience while they interact with their favorite apps.

An interstitial ad is a full-screen advertisement that appears between pages or during natural transitions within an app or website. It covers the entire screen, often with a countdown timer or a close button, and is designed to capture user attention during moments of transition.

Keyword research is the process of identifying and analyzing the search terms or keywords that users enter into search engines. It helps advertisers understand user intent, identify relevant keywords for targeting, and optimize their campaigns for better visibility and relevance.

A landing page is a standalone web page specifically designed to capture user attention and encourage a specific action, such as making a purchase or filling out a form. It is often used in digital advertising campaigns to provide a focused and persuasive experience for visitors.

A native ad is an advertisement that matches the form and function of the platform or medium in which it appears. It seamlessly blends with the surrounding content, providing a non-disruptive and more engaging user experience. Native ads are designed to appear more organic, often resembling editorial content.

A popunder is similar to a popup, but it appears in a separate browser window or tab, hidden behind the current window. It is displayed when the user closes or minimizes the current window, ensuring that the user sees it later.

A popup refers to a graphical window that overlays the current webpage being viewed. It is commonly used to display promotional offers, subscription forms, or additional content. Popups can be triggered by user actions or set to appear after a certain time delay on a website.

A push notification is a short message or alert delivered to a user’s device, such as a mobile phone or computer, via a web browser or app. It is used to engage and re-engage users by delivering timely updates, promotions, or reminders. More information you can find in our article The Power of Push Ads

Retargeting, also known as remarketing, is a digital advertising strategy that involves targeting users who have previously interacted with a website or app. It uses cookies or other tracking methods to display relevant ads to these users as they browse other websites or use other apps, encouraging them to return or complete a desired action.

Return on ad spend is a metric that measures the effectiveness of advertising campaigns by calculating the revenue generated for every dollar spent on ads. The formula for ROAS is: ROAS = Revenue Generated from Ads / Advertising Spend

Return on investment is a metric that measures the profitability of an investment. In digital marketing, ROI is often used to evaluate the effectiveness and profitability of advertising campaigns by comparing the revenue generated or costs saved against the advertising costs incurred. The formula for ROI is: ROI = (Net Revenue – Advertising Spend) / […]

Search engine optimization is the practice of optimizing a website or web page to improve its visibility and ranking in organic (non-paid) search engine results. It involves various techniques, such as keyword optimization, content creation, and website structure improvements, to attract more relevant organic traffic.

A video ad is a promotional message delivered in a video format. It can be displayed before, during, or after online video content, or embedded within websites and apps. Video ads offer advertisers an opportunity to engage users with audiovisual storytelling and capture their attention in a dynamic way.