I-Marketing Test - Advertising & Metrics Definitions.txt

IMPRESSIONS: An impression is generated each time an advertisement is viewed.

• CPM - Cost per thousand impressions:
• Advertising Cost / Impressions Generated (in thousands).
• Makes it easier to work with the resulting dollar figures that would be possible on the basis of cost per single impression.

NET REACH: # of people who receive an advertisement.

FREQUENCY RESPONSE FUNCTION: Used to model the reaction of a population to exposure to an advertisement.

Linear: All advertising impressions are equally impactful. Often unrealistic especially for complex products.

"Threshold: A certain number of impressions are needed before an advertising message will sink in. Often used, as it is simple and intuitive."

"Learning Curve: An advertisement has little impact at first but gains force with repetition and then tails off as saturation is achieved. Difficult to test for accuracy."

"SHARE OF VOICE: Quantifies the advertising "presence" of a brand, campaign, or firm in relationship to total advertising in a market.

PAGE VIEWS: The number of times a web page is served.

CLICK THROUGH RATE: # of click-throughs as a fraction of the number of impressions.

"COST PER CLICK: Advertising cost, divided by number of clicks generated.

"COST PER ORDER: Advertising cost, divided by number of orders generated.

• COST PER ACQUISITION:
• Advertising Cost / # of Customers Acquired

VISITS: The number of unique viewings of a website. Used to measure audience traffic on a website.

VISITOR: The # of unique website viewers in a given period.

ABANDONMENT RATES: The rate of purchases started but not completed.

BOUNCE RATE: Fraction of website visitors who view a single page. Used as an indicator of site's relevance and ability to generate visitor interest.

"FRIENDS / FOLLOWERS: # of individuals joining a social network.