Do Digital Advertising terms have you confused??
If you are working on a digital campaign we’re sure the following terms are thrown into the mix on a regular basis! For those of you that are still unsure, we are here to help you understand what these terms mean, how you can use them to your brands advantage, and get the most value out of your online presence.
So, let’s break down some of the common terminology;
This is a web page that consumers are directed to when they click on a paid search advert or specific hyperlink. It could be the main homepage of your website, or a separate landing page which is built specifically for a campaign with a specific objective. This is a handy tool for capturing leads and tracking the consumer journey.
Call to Action (CTA)
Paramount for online advertising; it is ultimately what you want your consumer to do. It is an instruction to the audience, to entice them to take a specific action. An example could be a prominent ‘Buy Now!’ button.
In simple terms, A/B testing allows us to measure the performance and effectiveness of one creative element against another; whether it’s a heading that’s changed on a landing page or key words replaced on a banner. It enables us to see which element is more effective at driving the required action.
You should keep things simple when changing one element to the next, so that you can clearly see which has a greater impact on your consumers.
Now let’s look at the Key Performance Indicators (KPI) terminologies for those campaign measures;
Pay Per Click (PPC)
This is the sum of money that a company pays to the host website when a user clicks on an advert. This is then measured by Cost Per Click (CPC), which is calculated by dividing the spend for a campaign by the total number of clicks for each advert. For example, if 100BHD is spent on a specific advert and the advert receives 100 clicks, the cost per click of the advert to the company is 1BHD. Obviously the lower the cost per click is the better as this means the return on investment is greater.
Click-through Rate (CTR)
This shows how many customers who were exposed to the medium, took the next step, whether it was clicking on a banner to access a website or clicking from a landing page through to a secondary page to gain more information. For example, if an advert has been shown 1000 times and was clicked on 500 times, the click through rate is 500 divided by 1000= 0.5 or 50% (50% of the people who were exposed to the advert clicked through to the landing page)
Cost Per Lead (CPL)
If you are aiming to capture leads (customer contact details) this would be the recommended way to measure the effectiveness of your campaign. If you run a CPL campaign you usually only pay the host when a lead has been captured – they will tell you if you spend BHD1000 you will get 40 leads and thus the cost per lead isBHD25 per lead. If this is not the media buying agreement, you can calculate the cost per lead by working out how much you spent on an advert and how many leads were generated from that advert. If you you spend BHD1,000 on the advert and it captures 20 people’s contact details your cost per lead will be 1000/20 = BHD 50 per lead.
The list can go on... but these are our digital terms for the day! Are there any other terms you would like to add to the list or question? If so, please feel free to comment on our blog.