We bring together four world-class paid advertising leaders who will share the fundamental knowledge you need to win paid traffic. They begin by sharing standard terms and acronyms that every paid advertising professional needs to know.
Search Engine Marketing (SEM)
Search engine marketing includes paid ads, search engine optimization, and content marketing.
Social Media Marketing (SMM)
Social media marketing includes organic and paid traffic and is restricted to social media channels.
Conversion
Conversion refers to the desired action you want people to perform on your funnel or website. A conversion event usually involves a customer’s time or money.
Conversion Rate
This is the number of people who visit your website or take up your offer.
Cost per click or CPC
Cost per click is the cost of your advertising campaign each time someone clicks on a button, a link, or your ad.
Cost per Thousand (CPM)
Every 1,000 impressions are charged a cost per 1000. A person is considered to have made an impression when they land on the page where your ad appears. Don’t ask why CPM is used…it’s weird.
Click Through Rate (CTR)
The click-through rate is the percentage of customers who click on an advertisement after seeing it. This metric can be used to determine the quality of both your media and ad copy.
Cost per Acquisition (CPA)
The cost per acquisition is an expense that’s incurred when acquiring a new client.
Return on Ad Spending (ROAS)
The return on advertising spend is the revenue per dollar spent.
Return on Investment (ROI)
The return on investment is the amount you receive after calculating the total cost of your ad campaign. Costs can be included in the calculation of ROI. These include agency fees, copywriting, graphic design, video production, tracking calls, etc.
Lifetime Value (LTV)
The lifetime value of a client is its value over the long term.
Urchin Tracking Module (UTM)
Urchin Software Corporation was the original name of Google Analytics. After Google acquired Urchin in 2005, the term stuck. The Urchin tracking module is the code at the end of a URL. It is not a universal tracking mechanism, Uncle Tom’s marmalade, or even Uncle Tom’s. This code is sent to the search engine whenever someone clicks the ad.
This list of terms can be used to impress friends at dinner parties or shared with clients who pay for advertising. This will help everyone to be on the same page and prevent confusion in the future.