Marketing in general is full of acronyms – hundreds in fact.
Paid media is no different, so here are the key ones you need to know to be able to measure how well your ads are doing and optimise them properly.
CPM – Cost Per Thousand Impressions
This is the most common method for web pricing. You will be charged for every 1,000 times your ad loads to a page.
Formula: total cost =((total impressions x CPM)/1,000.)
CPC – Cost Per Click
Your cost for each click your ad receives. Keep in mind that a click is not unique to that person taking action. If one person clicks on your ad 3x, you will be charged 3 times.
Formula: total cost =(click x CPC)
VTC – View Through Click
VTC helps you measure the effectiveness of your ad campaign. A view through click would mean that a customer saw your ad, did not click, but in a later session visited your website and converted.
CPA – Cost Per Acquisition
The cost per acquisition model applies to a specific “action” determined by the advertiser. Examples would include donation made to your non profit, or the purchase of tickets to an event. Do note that the CPA is very competitive and can carry a higher cost.
CTR – Click-Through Rate
This is the number of clicks your ad receives divided by the number of times your ad has been shown. The CTR percentage allows you to manage the engagement with your ad.
Formula: CTR percentage =((clicks/impressions x 100)
CTA – Call To Action
Your call to action is your “request” and the user’s next step after seeing your ad. Examples include “learn more”, “donate now” or “watch video”.
A good call to action drives a viewer to take action on your ad.
Are you running paid ads?
Get your 14 day FREE trial of Pacr here.
