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20 Digital Advertising Terms to Learn6 min read

Digital advertising is a world full of possibilities. There are many different levels to digital ads, from the ads themselves to the metrics on how to track them. Knowing all of the unique terminologies in digital advertising is one of the first steps to marketing success in this space. Whether you are a small business owner or a new marketing professional, we can help to teach you what terms you should know. Without further ado, here are 20 digital advertising terms to learn. 

 

A/B Testing

This term refers to the practice of testing two different pieces of ad content against each other and seeing what performs best. Examples of what could be A/B tested against each other: Landing pages, Display Image, Ad Creative, Ad Copy. 

 

You would not be testing these two at the same time. You’d first run one ad for a certain amount of time, then test the second ad for the same amount. Then, you can compare the testing results to see which performed better! 

 

Banner Ads

This term refers to advertisements that showcase on a website or online property. Banner ads are displayed as a rectangular shape and stretched across the top, sides, or bottom on a particular page. 

 

Bounce Rate

A bounce rate is a metric that helps track website activity. Anytime a visitor to a site looks at only the page they landed on then leaves the site ultimately, that is considered a bounce. You find the bounce rate by dividing the number of bounces by total sessions. 

 

Ideally, you want the bounce rate on your site to be between 40-65%. This means that engaging and well-crafted landing pages are crucial for people to click through your website more!

 

Copy

Simple and straightforward, copy refers to the text in a digital ad. Copy can be a headline, brief description, body of a paragraph, or quick call to action words. Well-written copy is essential in the digital ad space to get clicks and impressions on your ads.

 

Conversion

A conversion refers to the action you want people to take after seeing your ad. Most of the time, a conversion is a purchase, form fill, or a phone call. Your conversions are tracked on each ad. The more actions taken on your ad, the higher the conversion rate will be!

 

CPC

CPC stands for “cost per click,” a commonly used metric for tracking advertisements. The CPC refers to the amount an advertiser, on average, pays for each ad click.

 

CPM

CPM stands for “cost per thousand,” another metric used in tracking ads. The CPM is the average cost to receive 1,000 ad impressions, and most of the time used for display ads. The CPM is critical in brand awareness campaigns as visibility and impressions are the main focus. 

 

CTA

CTA stands for “call-to-action,” which means exactly how it sounds. The CTA refers to what step the ad wants the person viewing it to take. Common examples of call-to-actions are buy now, call today, or learn more. A strong CTA can go a long way in determining if the digital ad is successful or not. 

 

CTR

CTR stands for “click-through rate,” a metric used in tracking ads. The CTR refers to how frequently someone sees your ad, clicks on it. There will be far more people viewing your ad than clicking on it, which is totally normal. A good CTR to aim for is above 2%. The more engaging your ad is, the higher your click-through rate will grow. 

 

Display Ads

Similar to banner ads, display ads refer to graphics & visuals that are advertised on websites, apps, and social media. Display ads differ as they are implemented through a display advertising network, the most common being Google. Creating eye-catching visuals and well-designed graphics is a must before displaying ads. 

 

Frequency

Another straightforward term is frequency. The frequency refers to the number of times an ad is seen by the same person during a specific time period. Be sure to monitor the frequency of your ads. A good frequency number for a person to see the digital ad is 2-3 times. Anything more than 5 times is a bit of overkill.

 

Impression

Similar to frequency, an impression is a term used to measure the viewership of an ad. Impression refers to the total number of times an ad is seen by all consumers. That doesn’t mean anyone has interacted with it, but the views equal the total impressions. 

 

Geotargeting

A very cool feature in digital advertising is geotargeting. This term refers to advertising to a select audience in a designated area. You can geotarget by zip code, city, state, or country. This gives you the ability to reach a board or more locally-based audience depending on how big of a geographic location you want to target.

 

Keyword

Keywords are significant in the digital advertising space. This term refers to any word or phrase selected by the advertiser to be the main focus of the ad and show up in search engines. Choosing the right keyword is crucial for the success of an ad. You want a keyword people search for but do not want too much competition on that word. 

 

Lead

A relatively easy to know term is lead. A lead refers to a potential new customer or consumer of your product/service. Most of the time, the first step in acquiring a lead is through a form fill to gather their information. Once you have their information, you can begin strategies like remarketing towards them. 

 

Paid Social

This term refers to any advertising efforts on social media. The most common form of paid social is on Facebook Ads. Instagram, LinkedIn, and now TikTok have become increasingly popular for digital advertising as well. 

 

Paid Search

This term refers to an advertising effort on search engines. Google and Bing are primarily the top search engines used for paid search advertising. Paid search is about targeting a specific niche market you want to reach directly. When people go to search engines, they usually know what they are looking for. Doing paid search advertising on specific keywords will give you the best results. 

 

Reach

Reach goes hand-in-hand with impressions. The term reach refers to the total number of consumers who see your ad. But it only counts it one time when a person sees it. Say a person saw one particular ad 8 times. The reach will only be 1, and the impressions will be 8. You have to be careful not to overstimulate people with the same ads repeatedly. 

 

Remarketing

A pretty simple concept, remarketing, refers to showing ads to people who have previously accessed your website or interacted with you in some capacity. A common use of remarketing is when you put a call-to-action on your website for entering emails. Once you get a list of emails from leads who enter your site, you can do an email remarketing campaign to drive these prospects back to your website.  

 

View-Through

A way to measure the behavioral patterns of a consumer is a view-through. This term refers to tracking a consumer’s actions for a certain period of time after they have been served an ad. The ultimate goal of the view-through is to attribute the ad as a conversion. Typical time periods to set a view-through are 30 days, 60 days, or 90 days. 

 

Now you know a little bit more about the digital advertising world with these terms. Here at Pepper Gang we would love to help you reach what your business, marketing, or advertising goals are. Let us know what we can do to optimize your business!

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