Digital Media Glossary

CPM

• Definition: CPM stands for "Cost Per Mille," where "mille" means thousand in Latin. It represents the cost an advertiser pays for one thousand impressions (views) of their advertisement.

• Abbreviation: CPM

• Calculation: CPM = (Total Ad Spend / Total Impressions) x 1,000

Completion Rate

• Definition: Completion rate in digital media usually refers to the percentage of video ads played through their entire duration, out of the total number of times the video was started.

• Abbreviation: CVR 

• Calculation: Completion Rate = (Number of Completed Views / Number of Video Starts) x 100%

Impression

• Definition: An impression is counted each time an advertisement or any other form of digital media is fetched and displayed on a user's screen, regardless of whether it was clicked or not.

• Abbreviation: N/A

• Calculation: N/A (It's a raw count, not a calculated metric.)

Cost Per Click

• Definition: CPC stands for Cost Per Click, and it measures how much an advertiser pays each time a user clicks on their advertisement.

• Abbreviation: CPC

• Calculation: CPC = Total Ad Spend / Total Number of Clicks

Click Through Rate

• Definition: CTR is a ratio showing how often people who see your ad end up clicking it. It can be used to gauge how well your keywords and ads are performing.

• Abbreviation: CTR

• Calculation: CTR = (Total Clicks on Ad / Total Impressions) x 100%

Cost Per Acquisition

• Definition: CPA is a digital advertising metric that measures the aggregate cost to acquire one paying customer on a campaign or channel level.

• Abbreviation: CPA

• Calculation: CPA = Total Ad Spend / Total Number of Acquisitions

Effective Cost Per Millie

• Definition: eCPM is used to calculate the ad revenue generated per 1,000 impressions. It's a useful metric to compare the effectiveness of different advertising programs.

• Abbreviation: eCPM

• Calculation: eCPM = (Total Earnings / Total Impressions) x 1,000

Viewability

• Definition: Viewability is a metric that tracks how visible advertisements are to users. An ad is considered viewable if at least 50% of it appears on screen for more than one second, according to the Interactive Advertising Bureau (IAB) standards.

• Abbreviation: N/A

• Calculation: N/A (It's measured through tracking technologies, not a calculation.)

Return on Investment

• Definition: ROI measures the gain or loss generated on an investment relative to the amount of money invested. It's widely used to evaluate the efficiency of an investment in marketing.

• Abbreviation: ROI

• Calculation: ROI = [(Return from Investment - Cost of Investment) / Cost of Investment] x 100%

Return on Ad Spend

• Definition: ROAS measures the gross revenue generated for every dollar spent on advertising. It is a key metric to assess the effectiveness of online advertising campaigns.

• Abbreviation: ROAS

• Calculation: ROAS = Revenue from Ad Campaign / Cost of Ad Campaign

Engagement Rate

• Definition: Measures the level of engagement that a piece of created content is receiving from an audience. It includes actions like likes, shares, and comments.

• Abbreviation: N/A

• Calculation: Engagement Rate = (Total Engagements on a Post / Total Impressions) x 100%

Bounce Rate

• Definition: The percentage of visitors to a website who navigate away from the site after viewing only one page.

• Abbreviation: N/A

• Calculation: Bounce Rate = (Single Page Visits / Total Visits) x 100%

Search Engine Optimization

• Definition: The practice of increasing the quantity and quality of traffic to your website through organic search engine results.

• Abbreviation: SEO

Search Engine Optimization

• Definition: A form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising.

• Abbreviation: SEM

Demand Side Platform

• Definition: A system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.

• Abbreviation: DSP

Supply Side Platform

• Definition: A technology platform to enable web publishers and digital out-of-home (DOOH) media owners to manage their advertising space inventory, fill it with ads, and receive revenue.

• Abbreviation: SSP

Call to Action

• Definition: A prompt on a website that tells the user to take some specified action, such as "Read More", "Call Now", or "Sign Up".

• Abbreviation: CTA

Conversion Rate

• Definition: The percentage of users who take a desired action.

• Abbreviation: N/A

• Calculation: Conversion Rate = (Number of Conversions / Total Visitors) x 100%

Daily Active Users

• Definition: The number of unique users who engage with a site or app in a 24-hour period.

• Abbreviation: DAU

Monthly Active Users

• Definition: The number of unique users who engage with a site or app in a 30-day period.

• Abbreviation: MAU

Average Revenue Per User

• Definition: A measure used primarily by consumer communications, digital media, and networking companies, defined as total revenue divided by the number of subscribers.

• Abbreviation: ARPU

• Calculation: ARPU = Total Revenue / Total Number of Users

Lifetime Value

• Definition: A prediction of the net profit attributed to the entire future relationship with a customer.

• Abbreviation: LTV

• Calculation: LTV = (Average Purchase Value x Purchase Frequency) / Churn Rate

Churn Rate

• Definition: The percentage of customers or subscribers who cut ties with your service or company during a given time period.

• Abbreviation: N/A

• Calculation: Churn Rate = (Customers at Beginning of Period - Customers at End of Period) / Customers at Beginning of Period x 100%

Programatic Advertising

• Definition: The use of software to buy digital advertising, as opposed to the traditional process that involves human negotiation and manual insertion orders.

• Abbreviation: N/A