CTA, CTR, CPC, CPM, Impressions, Retargeting, Cookies, Velocity

Digital advertising can be complex, and the multitude of acronyms doesn't make it any easier to understand. This quick reference guide serves as a useful tool when you find yourself struggling to explain the meaning of these terms while reporting on campaign effectiveness.

CTA = Call-To-Action. Typically represented as a button or an action, the CTA is the desired response or action that the ad aims to elicit. It is recommended to have only one CTA per ad, landing page, or email, keeping it simple and focused on prompting the reader to take action.

CTR = Click-Through-Rate. This is the number of clicks divided by the number of impressions (the number of times your ad was viewed). It is one of the most reliable metrics for measuring effectiveness, representing the percentage of people who took action by clicking on the ad.

CPC = Cost-Per-Click. As the name suggests, this refers to the cost incurred for each click on the ad. It is important for digital advertising platforms to display this information so that advertisers are aware of their expenses and can evaluate their cost-effectiveness.

CPM = Cost-Per-Mille (Mille is Latin for thousand). This metric indicates the cost of reaching one thousand impressions. It is a standard measurement in advertising to determine media prices. Magazine print ads typically have the highest CPM, while digital ads tend to have lower costs.

Impressions = Refers to the instances when an ad is fetched from its source and counted as being viewed. In print advertising, it is calculated based on circulation multiplied by 1.2. In digital advertising, impressions are precise numbers as each time the ad code is accessed, it is tracked. Interestingly, it usually takes around 20 digital impressions before viewers take action, which is why digital ads are often more cost-effective.

Retargeting = Also known as remarketing, this involves targeting digital ads to individuals who have previously visited a specific page or bounced from your website. By placing an audience pixel on those pages, you can retarget those visitors with relevant ads, unless they are browsing in incognito mode.

Pixel = Also referred to as a tag or audience pixel, this is a JavaScript code embedded on your website. Most marketing technology companies utilize pixel technology. Whenever someone visits your website and the code is accessed, data is recorded. This enables you to identify which companies or individuals have visited your website. It is advisable to use tag management software to keep all your pixels organized in one place and easily enable or disable them.

Cookies = Data stored on a user's browser by a website. Cookies help websites remember user preferences, such as when you click "remember me" or when a website remembers where you left off during a previous visit. Digital marketers utilize cookies to gain insights into browsing behaviors and create audience profiles.

Velocity = Average transition time. This term is commonly used to describe how marketing activities contribute to sales velocity. In essence, it measures how marketing efforts influence accounts and serves as a leading indicator of marketing success rate.