When a company uses information collected from a computer user’s preferences to personalize specific advertisements to the user, this is considered online behavioral advertising.
Online advertising is a constantly evolving field to keep up with technological advances, which is why new terms and buzzwords are created almost daily. Some of these online advertising terms are more important than others, and there are some basic terms that any online advertiser should be familiar with. The most important online advertising terms deal with how ads are paid, such as cost per click (CPC), cost per thousand (CPM), and cost per action (CPA). Other terms address how ads are displayed on the Internet, such as the phrase “above the fold” which refers to the area of a website that can be viewed without vertical scrolling. Another very important term in online advertising is reach, as it refers to the actual number of people likely to be exposed to an ad.
Cost per thousand (CPM) is an element of online marketing that refers to how much advertising costs a business for every 1,000 impressions.
There are several basic terms related to the industry that are necessary to understand anything else. One of those basic terms is “single user,” which refers to a computer that has been identified by an Internet Protocol (IP) address, cookie, or other means, so that repeated visits by the same person are not counted. repeatedly. Every time a unique user visits a website and sees an ad, this is commonly known as an impression. When a display ad is used and the ad links to an external website, it is often referred to as a banner ad.
The cost-per-click (CPC) ad model invites users to express interest in a product or service by clicking an ad to learn more.
Many of the biggest online advertising terms are about how ads are paid for. In most cases, the cheapest type of online advertising is CPM. This type of advertising involves paying a fee based on the number of unique users who see a banner ad, which is similar to most types of offline advertising. The term CPC refers to a type of advertising where payments are made based on the number of times an ad is clicked, and CPA typically requires unique users to fill out a form that provides a hint to the advertiser.
Other important online advertising terms refer to the number of people who are likely to see an advertisement. Traffic is one of the most important terms to understand in this context, as it indicates how many unique users visit a website in a given period of time. Reach is a traffic-based term, as it refers to how many people are likely to see an ad. If an ad is likely to have a large reach, it will be seen by many people and can be quite expensive.
Two online advertising terms that address how ads are displayed are churn and exclusivity. Banner rotation is a term that indicates that one banner ad will be swapped out for other banners, so that each unique user of a website will have a slightly different ad experience. Exclusivity means that a site will only show ads from one advertiser, although this is usually more expensive. A related term is threading, which is a technique that websites can use to ensure that each unique user receives a unified advertising experience based on their own activity while browsing the website.