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DIGITAL AD GLOSSARY

Digital advertising is the land of acronyms and technical terms. Our glossary can help you make sense of it all with definitions of the most common terminology
"You Can Only Expect What You Inspect"
Digital advertising is a powerful tool when used properly. Before we start to discuss what digital advertising is, we should define some commonly used terms by digital advertising agencies and marketers:

  • Reach – The total number of constituents in the target audience.

  • Impression – When a digital ad is shown to a constituent.

  • Frequency – The number of digital ads shown to each constituent.

  • Click – When the constituents clicks the digital ad and enters the conversion funnel.

  • Action – When the constituent completes the desired action of the digital ad (sale, opt-in for email, register, download, etc.)

  • Conversion Rate – The percentage of constituents who go through the conversion funnel and complete an action.

  • Cost-per-thousand (CPM) – The cost of having a digital ad shown to a thousand constituents.

  • Click-thru-rate (CTR) – The percentage of constituents who clicked on a digital ad and reached an online property.

  • Cost-per-click (CPC) – The amount of money spent to get a click on an ad.

  • Cost-per-action (CPA) – The amount of money which is required to make a conversion from a digital advertisement.

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What do reach, frequency and impressions mean? 

Here’s a simplified breakdown:

  • Reach: how many unique constituents see your ad
  • Frequency: how many times those constituents see your ad
  • Impressions: total views on your ad or piece of content

For example, if your reach is 100, and your impressions are 200, you can assume everyone saw it twice (for a frequency of two).

STUDIES SHOW: Frequency is more important than Reach