SEM/Online Advertising Glossary

30 June, 2009 | Hieu Trung | 1 Comment

Abandonment
When visitors to a web site or callers leave a web site or hang up the phone before completing the call. The abandonment rate is a measure of the efficiency of marketing activities.

Above the Fold
On web pages, the part of the page that is visible on screen without scrolling. Material in this area is considered to be the highest value part of any web page because the viewer sees it first and some viewers do not scroll down the page.

A/B Split Testing
A method in which two random groups of web site visitors are served different pages to test the performance of specific ad components such as a headline or graphic element. A/Bsplit testing is used to test only one variable at a time. Results help to track the changes in behavior of prospective customers based on which version of the web page they viewed. A/B split testing can increase conversion rates, challenge assumptions, and solve problems.

Ad Position
For sponsored link text ads, the place on the search engine results page (SERP) where the ads are displayed. Depending on the search engine, text ads are shown at the top of the page, the right side of the page and in some engines below the natural results.

adCenter
adCenter is the name of Microsoft’s pay per click ad network. As a newer provider of online marketing, adCenter has a small share of the PPC market compared with Google AdWords.

AdSense
AdSense is Google’s contextual advertising program for web site publishers. Web site owners can participate in this ad serving program to allow text, image and video advertisements administered by Google to be on their web sites. Google uses its search technology to serve ads based on web site content, the user’s geographical location and other factors. This service is free and can be very effective in monetizing web site content for some sites. Revenue is generated on a per-click or per-thousand impressions basis and publishers share the profits from those ad clicks with Google.

AdWords
Google’s pay per click and site-targeted advertising program for text and banner ads is known as AdWords. The auction-style program is flexible and has been designed so that ad campaigns can be set at the local, national and international level.

B2B or B-to-B
Business to Business.

B2C or B-to-C
Business to Consumer.

Banner Ad
A banner ad is an ad that contains a graphic image that links to an advertiser’s web page. Banner ads come in a variety of sizes and can be static or have motion such as rich media, whereas text ads contain only text and no images.

Below the Fold
On web pages, the portion of the page that is visible on screen by scrolling down to the middle or bottom of the page. Material in this area is commonly considered to be the least valuable part of any web page because some viewers do not scroll down the page.

Call to Action
A call to action is the desired action that is requested of prospective clients and customers by an advertiser’s marketing message. Examples include requesting additional information, making a purchase, asking for a catalog, downloading a free white paper, etc.

Cascading Style Sheets (CSS)
CSS is the language used to describe how an HTML document should be formatted. Both web designers and builders use CSS to define colors, fonts and layout, and thus separate style from structure on web pages.

Click
Click is the term used in paid search to refer to a user interacting with an ad by clicking on it and being delivered to a web page. So, a click on an ad generates a hit or a visitor to a web site.

Clickthrough Rate (CTR)
CTR is the acronym for “Clickthrough Rate”, and is defined as the number of clicks on an ad divided by the number of page views or impressions of that ad. CTR is a measure an ad or link’s effectiveness, when used for a keyword or source of traffic. Typically, the higher the clickthrough rate the better. Ads from active searches tend to have higher CTRs than banner ads or those served to readers of content, such as AdSense.

Contextual Advertising
Contextual Advertising, also known as content advertising, is an advertising program that generates advertisements on a web site based on the specific content on that web page. Google AdSense was the first contextual advertising program and is the most popular one as well. To better understand this term, contrast contextual ads with ads served to computer users actively entering a query in a search box.

Conversion
A conversion is a desired client or customer action and is one measure of the success of a web site or advertising program. Successful conversions can be either online or offline. In addition to purchases from a web site, conversions can include newsletter signups, online appointments, membership registration, the download of software or a white paper, a referral to a colleague or friend, etc. For businesses with products or services that can be tracked, conversions are considered the most important metric since they can be directly linked to revenue generated.

Conversion Rate
The conversion rate is the percentage of visitors who make a desired action following a visit to a web site. Conversions are an important metric because they provide a good assessment of the value of the traffic and revenue generated for your business.

Cookie
A cookie is a small data file stored on a user’s computer by a web site. Examples of cookies include a URL or web address. Cookies are designed to help customize a visitor’s experience to your web site and also allow the tracking of conversions.

Cost Per Action (CPA)
CPA is the acronym for “Cost Per Action” and is defined as the cost to an advertiser for a specific action taken by a user who has responded to an ad. An “action”, also called a conversion (see C Conversion above), can range widely from the purchase of a product to downloading a white paper. CPA is an excellent means of measuring the effectiveness of online advertising. Pay per incoming phone call is another example of a CPA pricing model.

Cost Per Click (CPC)
CPC is a pricing model in paid search that is based on the dollar amount paid each time an ad is clicked. Most search and content ads are in an auction system in which advertisers are charged on a maximum Cost Per Click basis. Higher efficiency and a higher quality score yield a lower cost per click. See Pay Per Click (PPC).

Cost Per Conversion
Total ad cost divided by the number of conversions during a specific time frame. Conversions can be any desired action and include online purchases, completing a contact form, an incoming telephone call, etc.

Cost Per Thousand (CPM)
CPM is an acronym for Cost Per Thousand ad impressions. It refers to the dollar amount an advertiser pays for 1,000 impressions or page views of an ad. Contrasted with PPC, CPM occurs regardless of user interaction.

Dayparting
Dayparting is a campaign level option in PPC programs that allows managers to automatically run ads on a certain day of the week or time of the day. This feature allows ads to be shown when the target audience is more likely to be available, and can also be used to manage your budget or to make sure ads receive exposure in different parts of the world or time zones.

ecommerce

Short for “electronic commerce”, which is the buying and selling of products and services on the internet, whereby the transactions are performed electronically. The primary types of ecommerce are B2B and B2C.

Flash Content
Flash content is the graphic animation used on web sites to make them visually interesting and interactive. However, because flash contains minimal relevant crawlable text content, search engines have more difficulty indexing and ranking web sites that utilize flash content.

Frames
Frames is a feature supported by most web browsers that allows web site designers to display two or more pages or frames in the same browser window. Although this web design technique facilitates consistent site navigation, frames have now been replaced by more effective content site building tools.

GeoTargeting
In paid search, the method of distributing ads for a product or service to a defined market based on the geographic location of prospective buyers. You can define your market by country, region, state, city or zip code to reach your targeted customers. GeoTargeting can be used to help you identify the most lucrative geographic markets for your product or service.

Hits
The number of times a particular web page, web image or file is viewed.

Impression
An impression or exposure is the term used to describe when your ad is shown on a search results page after being triggered by a user’s query.

IP Address
Every computer connected to the internet is assigned a unique numeric address known as an Internet Protocol (IP) address. Since IP addresses are usually assigned in geographically-based blocks, an IP address can be used to identify the area from which a computer is connecting to the internet.

Keyword
A keyword is a word or series of words that are entered into the search box of a search engine. Thus, these are the words that you should use in your PPC campaign. Depending on the web site and the size of the advertising program, the number of keywords used can range from a few to thousands.

Keyword Bid
The maximum amount of money you are willing to pay each time a user clicks on your PPC ad on a search engine and then visits your web site. Google rewards relevance and efficiency. The better an AdWords program is built and managed, the lower the cost per click will be below the bid.

Keyword Matching
The different methods of choosing and organizing your keywords to match your prospective customers’ queries. Google AdWords has four different types of keyword matching options including broad match, exact match, phrase match and negative keyword. These advanced options, properly used, can help you target your ads to the desired audience. Yahoo!, MSN and other search engines have different standards for selecting and organizing keywords which vary somewhat from Google’s.

Landing Page
A landing page is the web page that loads when a PPC ad is clicked on, i.e. it is the page that your prospective customers “land on”. They are typically designed with a call to action that can be an ecommerce purchase, a registration, a request for more information, the download of a software demo, etc. A landing page can be on your site or a page hosted at another location. A landing page is also known as a destination URL or clickthrough URL.

Long Tail Keywords
Long tail keywords are keyword phrases composed of three or more words that collectively are more specific than a single keyword. Long tail keywords are more likely to convert to sales than shorter, more generic keywords because there is less competition for them. Generally, the more specific the search, the closer the searcher is to the act of purchasing a product or service.

Microsite
A microsite is a web site with features between a landing page and a traditional web site. They are designed to function as a supplement to the primary web site and typically provide specialized information. Microsites often have their own URL, and they are frequently used when a business wants to offer prospective customers in-depth information about a new or specific product, service or technology. Microsites can also be used as landing pages for paid search or PPC.

Minimum Bid
The lowest dollar amount set by a pay per click ad program, such as Google AdWords, for either a specific keyword or type of keyword. A minimum bid is more often encountered when there are quality score penalties than in the initial account setup or ongoing bidding strategy on keywords.

Multivariate Testing
Also known as the Taguchi Method, multivariate testing is a sophisticated statistical testing model that allows simultaneous testing of several ad variables such as the hero shot, headline text, body copy, background color, etc. With A/B Testing, only one variable at a time can be effectively examined. See A/B Split Testing.

Multichannel Marketing
The use of multiple media activities to reach a targeted customer group. A channel could be a web site, an email, a bricks-and-mortar business, a mail order catalog, etc. The objective of multichannel marketing is to make it as easy as possible for your clients or customers to buy from you.

Natural Ranking
See “Organic Ranking”.

Negative Keywords
In search engine advertising, “negative” keywords are used to filter words that are unrelated to the product or service being advertised but are in other categories that have the potential to generate impressions and clicks that are not relevant to the search query. Thus, correctly used negative keywords help raise clickthrough rates (CTR) and lower the cost per click (CPC).

Offline Conversion
A purchase or other conversion which takes place in the real world, usually at a bricks-and-mortar business or over the telephone.

Organic Ranking
Also known as “natural” ranking, it is any web site list on the free or unpaid section of a search results page. Organic rankings are considered the most relevant results of a search query and result from using SEO techniques rather than paid advertising. Unlike PPC, you cannot control where your web site will show up on this ranking, and you do not pay each time a user clicks on the link. Your rankings are based on an algorithm, including the content on the site, links from other sites to your site, the age of the site, etc. Also, unlike sponsored links, these rankings can take years to achieve, and older sites have a huge advantage over newer sites.

Overture
Overture was the originator of pay per click advertising. Founded in 1997, Overture was purchased in 2003 by Yahoo! and subsequently rebranded as Yahoo! Search Marketing.

Page View
A page view is a single page being viewed a single time by a single IP address. Thus, one unique visitor resulting from one click could explore a web site, visit ten pages, and tally 10 page views.

Paid Search
See “Pay Per Click”.

Pay Per Call
Pay Per Call is similar to pay per click advertising, however, instead of clicking a sponsored link, pay per call ads display a toll-free telephone number that the person can call. The advertiser therefore receives a phone call instead of a visitor who clicks on their link and is then directed to their web page.

Pay-Per-Click (PPC) Advertising
Also known as search engine advertising, paid search, or sponsored links, PPC is an online advertising model where advertisers pay only when a user clicks on an ad that links to the advertiser’s web site. Each time a visitor clicks on the link in an ad, the advertiser pays the search engines, from $.01 to $10 or more. In the pay-per-click model, the highest bidder ranks the best. PPC ads are text only and are located on the top and/or down the right side of the search results pages of nearly every major search engine.

PPA (Pay Per Action)
Pay-Per-Action advertising is a pricing model that enables advertisers to pay only when specific actions that they define are completed by a visitor on their site. For example, instead of paying for clicks or impressions, an advertiser may choose to pay only when a user makes a purchase or signs up for a newsletter. Also see Cost Per Action (CPA).

PPC
See “Pay-Per-Click (PPC) Advertising ” and “Cost Per Click”.

Quality Score
The quality score is a dynamic metric used by Google to assess the quality and relevance of your ads and landing pages. It determines your keyword status, minimum CPC bid and ad rank. Quality score is calculated based on your clickthrough rate and the relevance of your ad text, keyword, and landing page. The quality score only becomes evident when it is low and Google raises the minimum bid on associated keywords. The higher a keyword’s quality score, the lower its minimum bid and the better the ad position for associated ads.

Query
A query is a particular word, phrase or group of words that a searcher types into a search box, while actively seeking information. The search box can be on a search engine’s home page but can also be found in other places including the tool bar of many web sites.

Referrer
The source or URL of the web page from which a particular web site visitor came.

Return On Advertising Spend (ROAS)
Return On Advertising Spend (ROAS) is a measure of the effectiveness of your PPC marketing program. ROAS is computed by dividing revenue resulting from an advertising program by the cost of your advertising investment.

Return On Investment (ROI)
ROI stands for Return On Investment and is a measure of the return you will receive from each marketing dollar. The ROI formula can be used to measure return at many levels, including sales, gross profit, or net profit.

RSS
RSS stands for Rich Site Summary or Real Simple Syndication. It is a method of sharing content among different web sites. Sites can syndicate “feeds” or content and users can use an application known as an RSS reader to download these feeds.

Sales Cycle
The time between the first contact with a client or customer and the sale. The sales cycle is a measure of the efficiency of the sales organization when compared within the industry vertical.

Search Engine Marketing (SEM)
Search Engine Marketing is a broad term that describes all of the activities used to promote web sites and thus generate leads and sales from search engines. SEM includes PPC Management, landing page optimization and SEO.

Search Engine Optimization (SEO)
Search engine optimization is the process of increasing a web site’s organic rankings. The process is complex and time-consuming, and includes improving web site usability, content building, link building, social media and more.

Search Engine Results Page (SERP)
SERP is the page on which search engines display the results of a particular search query.

Sponsored Links
See “Pay Per Click (PPC)”.

Text Ad
A text advertisement is one that contains words, often in a box, rather than an image or images. Text ads are commonly associated with Sponsored Links in Google AdWords. When viewed on a search results page, a text ad consists of a headline, one or two lines of text, and a display URL. Text ads are found in both search ads and contextual or content ads.

Thank You Page
Also referred to as a “success page” or “confirmation page”, a thank you page is the web page that appears after a user submits a form or an order online. Typically, the page is used to thank the user and tells them what to do next.

Unique Visitor
A unique visitor is a count of the number of individual users who have accessed a web site during a given period of time, usually 30 days. Unique visitors do not include duplicates, so visitors are counted only once regardless of the number of times they visit your site.

Uniform Resource Locator (URL)
A URL is the unique address of a web site or file on the internet.

Viral Marketing
Viral Marketing is any marketing activity that is self propagating and creates the opportunity for exponential growth of your message as a result of users passing or spreading it to other users. Examples of viral marketing channels that can quickly spread a message include email, social networking, blogging, and word of mouth.

Yahoo! Search Marketing
Yahoo! Search Marketing is a keyword-based paid search or online advertising service sponsored by Yahoo!

Source: topsidemedia.com

1 comment
  1. alex farguson says:

    I really liked your blog!

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