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Understanding Advertising Analytics
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Impressions
The number of times an ad is displayed to users, indicating the reach of an advertisement but not user engagement.
Click-Through Rate (CTR)
A ratio showing how often people who see an ad end up clicking it, given by %, an important metric for gauging ad relevance and engagement.
Conversion Rate
The percentage of users who take the desired action after clicking the ad, calculated as %, a key measure of ad success.
Cost Per Click (CPC)
The amount paid for each click on an advertisement, a critical metric for budgeting and calculating return on advertising spend (ROAS).
Return on Advertising Spend (ROAS)
The amount of revenue generated for every dollar spent on advertising, given by , indicative of the profitability of an advertising campaign.
Cost Per Acquisition (CPA)
An advertising metric that measures the total cost to acquire one paying customer on a campaign, crucial for understanding the effectiveness and efficiency of marketing strategies.
Cost Per Thousand Impressions (CPM)
The price of 1,000 advertisement impressions on one webpage, used to calculate the cost effectiveness and profit potential of different advertising strategies.
Engagement Rate
A metric that indicates the level of interaction users have with content, essential for assessing the quality and relevance of advertising content.
Brand Awareness
A measure of the degree to which consumers recognize and remember a brand, often a central goal of advertising efforts and reflective of market impact.
Quality Score
A metric used by search engines to determine the relevance and quality of your PPC ads and keywords, affecting ad placement and cost.
Ad Frequency
The average number of times an individual is exposed to an advertisement, indicating campaign reach and potential consumer fatigue.
View-through Conversion Rate
The measurement of the number of conversions that happen within a set period after a user sees an ad but does not click, highlighting the 'invisible' impact of exposure.
Lifetime Value (LTV)
The predicted net profit attributed to the entire future relationship with a customer, important for long-term business strategy and advertising investments.
Bounce Rate
The percentage of visitors to a website who navigate away after seeing only one page, signaling the effectiveness of an ad in leading to engaging content.
Cost Per Lead (CPL)
The amount it costs to acquire a lead, crucial for determining the cost-effectiveness of an advertising campaign geared towards lead generation.
Ad Spend
The total amount of money spent on advertisements for a certain period, a core measure that directly impacts advertising strategy and financial planning.
Clicks
The number of times users have clicked on an advertisement, a direct measure of engagement and the initial step towards achieving a conversion.
Organic Traffic
The number of visitors that come to your website as a result of unpaid search results, reflecting the underlying strength of content and SEO efforts.
Attribution Model
The framework for analyzing which touchpoints or channels contribute to conversions, guiding the distribution of budget and efforts across marketing tactics.
Geotargeting
The practice of delivering content or advertisements to a user based on their geographic location, vital for local advertising and market segmenting.
Audience Segmentation
The process of dividing a business's market into subgroups based on shared characteristics for more targeted and effective advertising.
Remarketing
The strategy of targeting users who have previously visited your website with ads across different websites, with the intention of drawing them back.
Ad Position
The order in which an ad appears on a page relative to other ads, affecting the ad's visibility and likelihood of receiving clicks.
Search Query Reports
Detailed reports that show what search terms triggered impressions and clicks on PPC ads, essential for refining keyword strategies and understanding user intent.
Social Media Reach
A metric that measures the number of people who have seen content associated with your brand on social media, illustrating the extent of content dissemination.
Frequency Capping
The act of limiting the number of times a specific advertisement is shown to the same user on a website, reducing the risk of ad fatigue.
A/B Testing
The process of comparing two versions of a webpage or ad to each other to determine which one performs better and thus improve marketing effectiveness.
Customer Acquisition Cost (CAC)
A metric that calculates the total cost associated with acquiring a new customer, including advertising and marketing expenses, indicative of scalability and sustainability.
PPC Budget
The financial plan allocating a specific amount of money to pay-per-click advertising campaigns over a certain period, directly affecting ad reach and frequency.
Ad Extension
Extra pieces of information that can be added to Google AdWords advertisements, such as phone numbers, addresses, and more links to the website, enhancing ad presence and information.
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