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Last week we covered the key moments one can capitalize on in Advertising.Now before we dive into complex topics and details in online advertising, lets get the definitions of the basics terms used that will keep popping up through the blogs as we move on.

  1. Hit or request

A hit is the result of a file being requested and served from your web site. This can be an html document, an image file, an audio track etc. Web pages that contain a large number of elements will return high hit scores. Hits are of very little consequence when analyzing your visitor demographics.

  1. Page view

A page view means quite literally just that. It is not a true measure of how many different people are visiting your web site, but it is a good way to judge how “sticky” (the ability to retain the interest of visitors) your web site is. It is a vital consideration regarding the possibility of attracting high paying advertising.

  1. Bounce rate

It refers to the number of people who visit a site or specific page but proceed no further; usually also represented as a percentage. For example, if your bounce rate is 70%, then that means 70 out of 100 visitors to your site only view a single page.

  1. Unique visitor

It implies to someone with a unique IP address who is entering a Web site for the first time that day (or some other specified period). When you log onto the net, you are assigned a unique IP address, as a cable modem user your IP address is usually “static”, meaning that it never changes.

So no matter how many times a visitor refreshes or navigates through your web site, they will only be counted once for the specified time period. This is by far the more accurate way of analyzing web site performance.

Note: the notion of a “unique” visitor as described above can be somewhat misleading in the instances of multiple users sharing the same IP. For example, the conception of home networks in recent years may see you having 2 or more people from the same network accessing your site via the same originating IP. This can also occur in the cases of universities accessing your site. In these circumstances, it is more difficult to tell if 1 person from the same IP is viewing 50 pages, or if it’s 10 people.

  1. Referrer

A referrer is simply the origins of the visitor to your site, i.e. the last site visited and the page on it that led them to your website

  1. Clicks

A click is when a user clicks on an ad.

      7. Impressions

An Impression refers to Ad Exposure.Each time the Ad is displayed where it is seen and not clicked on and is countable is called an Impression.Ad impressions measure an Internet advertising campaigns volume and power.

     8. Advertising Inventory

The total number of ad impressions on a publisher website for a given period is called advertising inventory.

  1. CPM (cost per mille)

Cost per mille, often abbreviated to CPM, means that advertisers pay for every thousand displays/impressions of their message to potential customers (mille is the Latin word for thousand).

    10. Cost Per Impression (CPI)

CPI is the cost or expense incurred for each potential customer who views the advertisement(s), while CPM refers to the cost or expense incurred for every thousand potential customers who view the advertisement

    11. Cost Per Order (CPO)

Cost per order, also called cost per purchase, is the cost of internet advertising divided by the number of orders.Its primary purpose is to calculate the advertising cost required to acquire an order when the ad is placed for sales generation.

Stay Tuned In For Part 2 as we cover more terms key to Online Advertising

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