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Understanding Advertising Analytics

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Impressions

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The number of times an ad is displayed to users, indicating the reach of an advertisement but not user engagement.

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Click-Through Rate (CTR)

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A ratio showing how often people who see an ad end up clicking it, given by CTR=ClicksImpressions×100CTR = \frac{Clicks}{Impressions} \times 100%, an important metric for gauging ad relevance and engagement.

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Conversion Rate

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The percentage of users who take the desired action after clicking the ad, calculated as Conversion Rate=ConversionsClicks×100Conversion\ Rate = \frac{Conversions}{Clicks} \times 100%, a key measure of ad success.

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Cost Per Click (CPC)

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The amount paid for each click on an advertisement, a critical metric for budgeting and calculating return on advertising spend (ROAS).

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Return on Advertising Spend (ROAS)

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The amount of revenue generated for every dollar spent on advertising, given by ROAS=RevenueAdvertising SpendROAS = \frac{Revenue}{Advertising\ Spend}, indicative of the profitability of an advertising campaign.

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Cost Per Acquisition (CPA)

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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.

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Cost Per Thousand Impressions (CPM)

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The price of 1,000 advertisement impressions on one webpage, used to calculate the cost effectiveness and profit potential of different advertising strategies.

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Engagement Rate

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A metric that indicates the level of interaction users have with content, essential for assessing the quality and relevance of advertising content.

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Brand Awareness

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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.

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Quality Score

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A metric used by search engines to determine the relevance and quality of your PPC ads and keywords, affecting ad placement and cost.

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Ad Frequency

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The average number of times an individual is exposed to an advertisement, indicating campaign reach and potential consumer fatigue.

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View-through Conversion Rate

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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.

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Lifetime Value (LTV)

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The predicted net profit attributed to the entire future relationship with a customer, important for long-term business strategy and advertising investments.

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Bounce Rate

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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.

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Cost Per Lead (CPL)

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The amount it costs to acquire a lead, crucial for determining the cost-effectiveness of an advertising campaign geared towards lead generation.

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Ad Spend

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The total amount of money spent on advertisements for a certain period, a core measure that directly impacts advertising strategy and financial planning.

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Clicks

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The number of times users have clicked on an advertisement, a direct measure of engagement and the initial step towards achieving a conversion.

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Organic Traffic

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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.

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Attribution Model

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The framework for analyzing which touchpoints or channels contribute to conversions, guiding the distribution of budget and efforts across marketing tactics.

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Geotargeting

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The practice of delivering content or advertisements to a user based on their geographic location, vital for local advertising and market segmenting.

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Audience Segmentation

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The process of dividing a business's market into subgroups based on shared characteristics for more targeted and effective advertising.

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Remarketing

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The strategy of targeting users who have previously visited your website with ads across different websites, with the intention of drawing them back.

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Ad Position

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The order in which an ad appears on a page relative to other ads, affecting the ad's visibility and likelihood of receiving clicks.

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Search Query Reports

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Detailed reports that show what search terms triggered impressions and clicks on PPC ads, essential for refining keyword strategies and understanding user intent.

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Social Media Reach

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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.

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Frequency Capping

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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.

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A/B Testing

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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.

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Customer Acquisition Cost (CAC)

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A metric that calculates the total cost associated with acquiring a new customer, including advertising and marketing expenses, indicative of scalability and sustainability.

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PPC Budget

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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.

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Ad Extension

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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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