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40 Online Advertising Terms Every Entrepreneur Should Know

If your small business plans on utilizing, or is already engaged in, online advertising here are forty basic terms that every entrepreneur should know.

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11. Click-through: the action of following a link within an advertisement or editorial content to another Web site or another page or frame within the Web site. Ad click-throughs should be tracked and reported as a 302 redirect at the ad server and should filter out robotic activity.

12. Contextual Ads: existing contextual ad engines deliver text and image ads to non-search content pages. Ads are matched to keywords extracted from content. Advertisers can leverage existing keyboard-based paid search campaigns and gain access to a larger audience.

13. Cookie: a small piece of information (i.e., program code) that is stored on a browser for the purpose of identifying that browser during audience activity and between visits or sessions.

14. CPA (Cost-per-Action): cost of advertising based on a visitor taking some specifically defined action in response to an ad. “Actions” include such things as a sales transaction, a customer acquisition, or a click.

15. CPC (Cost-per-click): cost of advertising based on the number of clicks received.

16. CPL (Cost-per-lead): cost of advertising based on the number of database files (leads) received.

17. CPM (Cost-per-thousand): media term describing the cost of 1,000 impressions. For example, a Web site that charges $1,500 per ad and reports 100,000 visits has a CPM of $15 ($1,500 divided by 100).

18. Display Advertising: a form of online advertising where an advertiser’s message is shown on a destination web page, generally set off in a box at the top or bottom or to one side of the content of the page.

19. E-mail Advertising: banner ads, links or advertiser sponsorships that appear in e-mail newsletters, e-mail marketing campaigns and other commercial e-mail communications. Includes all types of electronic mail (e.g., basic text or HTML-enabled).

20. Fold: the line below which a user has to scroll to see content not immediately visible when a Web page loads in a browser. Ads or content displayed “above the fold” are visible without any end-user interaction. Monitor size and resolution determine where on a Web page the fold lies.


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