Top 10 Retargeting Acronyms to Help You Crush Your Campaigns
CPC
Cost Per Click. In pay-per-click (PPC) marketing, everything boils down to the click. The CPC is the cost you pay for each one of those coveted touchscreen taps, keyboard or mouse clicks. Typically, the more clicks you get, the less CPC you pay, the better the ad campaign
CPI
Cost Per Impression. Well before a customer clicks an ad, the ad must make an impression. CPI is the average amount you pay each time a potential customer views your ad
CPM
Cost Per Thousand Impressions. Don’t be thrown off by “M,” the Roman numeral for 1,000. CPM is the price for every 1,000 potential customers who see your ad. It’s the standard unit for assessing the cost effectiveness of a campaign.
CR
Conversion Rate. Calculate a CR by dividing the number of people who take an action by the number of people who could have. So if 100 people visit your online skater store, and 65 of them actually purchase new skateboards, the CR is 65/100, or 65%.
CTR
Click-Through Rate. Find the CTR of your campaign by dividing the number of clicks by the number of impressions served. A strong CTR is a powerful indication of the appeal and relevance of your ad.
ROAS
Return On Ad Spend. ROAS measure gross revenue generated for every dollar spent on advertising. A useful metric for determining the effectiveness of an online campaign, ROAS help advertisers gauge what’s working and how they can improve future efforts.
ROI
Return On Investment. The world revolves around ROI, whether you’re planning an ad campaign or determining whether or not the 40-minute line at the waterpark is really worth the 10 seconds of water slide (it totally is)
RTB
Real-Time Bidding. In real-time bidding, each ad impression is sold to the highest bidder in real time, in the mere seconds it takes a potential customer’s browser to load an ad unit. Marketers can be selective about who sees their campaign, bidding more on browsers with particular browsing history, for example.
SSP & DSP
Supply-Side Platform and Demand-Side Platform. The Internet is certainly not exempt from the laws of supply and demand. In online advertising, marketers “demand” a “supply” of ad inventory from web publishers. DSP is the real-time-bidding interface marketers use to buy ad inventory, and SSP is the software publishers use to manage that inventory
