List o’ 10 Important Online Advertising Acronyms

online advertising acronyms explainedThis is a short to the point list for on-line biz nerd. If you have a web site or do any advertising on line, these are the terms that you need to know – might already – because these metrics are some of the main ways that your site and its business are measured.

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1. UV
Stands for “unique visitors,” and it refers to total number of people who visited a website during a specific time frame (e.g., day, week, month or year). The word “unique” is used because a single person can return to the website several times, thus generating many “visits.” They are only counted once.

2. PV
Stands for “page views,” and it refers to the total number of pages viewed on a website, during a specific period of time. The PV number will always be higher than the UV (unique visitors) because a single visitor usually visits multiple pages on a website.

3. computer service . CPC
Stands for “cost per click,” and it refers to an advertising model where the website owner (also called publisher) will earn a certain amount of money for each click that is generate on the ads on his website. The advertiser, on the other hand, specifies how much he is willing to pay per click (hence why this model can also be called PPC). The largest CPC/PPC ad network on the Internet is Google AdSense/AdWords, though many others also exist.

4. CPM
Stands for “cost per mile,” where mile is the Latin word for thousand. It refers to an advertising model where the website owner will earn a certain amount of money for each 1,000 page views (also called impressions) the banner will get on his website. Banner ads are usually priced under a CPM model. This is the older model for e-commerce, since advertisers are no longer willing to pay for just traffic; they want conversions to sales.

5. PPV
Stands for “pay per view,” and it refers to an advertising model where the advertiser will display his message via pop-ups, pop-unders and intertitial ads (e.g., full page adverts between the page you currently you are currently on and the one you clicked to go). This model can also be called CPV, which stands for cost per view.
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6. CPA
Stands for “cost per action”, and it refers to an affiliate marketing model where the merchant will pay a certain commission to the affiliate whenever a referral from the affiliate performs a specific action (e.g., completes a survey, subscribes to an email newsletter and so on).

7. CPS
Stands for “cost per sale,” and it refers to an affiliate marketing model where the merchant will pay a certain commission to the affiliate whenever a referral from the affiliate purchases the product. Amazon uses this model to incent web publishers to post Amazon sales banners on their site – kind of like the one here (did you notice the sidebar??)

8. CPL
Stands for “cost per lead,” and it refers to an affiliate marketing model where the merchant will pay a certain commissions to the affiliate whenever the affiliate sends a lead (also called prospect) to the merchant’s website. Very popular in multi-level marketing, or chained sales, like the many books that promise wealth and foolproof systems. All they really do is generate leads and hopefully sales, making it an economy without a product.

9. CTR
Stands for “click through rate,” and it refers to the percentage of people visiting a website who will click on a link or ad. You can find the CTR by dividing the number of clicks the link or ad received by the number of times it was displayed (e.g., the number of page views).

10. CR
Stands for “conversion rate,” and it refers to the percentage of visitors of a certain web page who will perform a desired action (e.g., purchase a product, subscribe to an email newsletter and so on), very similar to CPA.

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4 Responses to "List o’ 10 Important Online Advertising Acronyms":

  1. tax attorney December 30, 2010 at 20:37

    Wow this is a great resource.. I’m enjoying it.. good article

  2. phentermine November 15, 2010 at 07:14

    Hello, this my first post. Good Luck!

  3. Kennith Aharonof November 4, 2010 at 07:27

    this page doesn’t seem to look right on Safari, but your other pages do. strange…

  4. Digger September 26, 2010 at 09:57

    ok – these are all pretty basic and anybody involved in online biz of any sort should know this stuff. If not, time to get back to school. But I guess for anyone who is new to the game, this is a good starter list. Word of advice for the newbies – keep doing your homework, because it is not an easy path to make money on line, and you will need to know a lot more than just some terminology. It is hard work.