Common Digital Advertising Terms

Do you speak the language of internet ads? To make sure you know what you need, what you’re getting, and why our service is so valuable to your business, we have included some straightforward definitions below:

Display Advertising

An online advertising format where graphic ads (called banner ads) are shown on a webpage. The term originated in the newspaper industry, and many principles of that business still apply. Display ads can be graphics, videos, or even expandable or interactive images (such as a quiz or game).

Audience

The total number of people who have been exposed to an ad, or could possibly be exposed to an ad, during a specific time period.

Frequency

the number of times an ad is served to the same consumer during a specific time period. Since multiple users can often access the internet from a shared device, frequency is calculated based on the number of times an ad is delivered to a particular device’s browser.

Impression

The number of times an ad has been displayed. Please note that an impression is generated regardless of whether the user has actually seen or interacted with the ad in any way.

Click

The action taken when a user interacts with an ad, either by clicking on it with a mouse or pressing the enter key on a keyboard.

Destination URL

The address of the webpage that people reach when they click on one of your ads.

Landing Page

The webpage users visit after they click on your display ads or paid search ads.

Targeting

Targeted ads deliver messages to a pre-selected audience based on various attributes like geography, demographics, psychographics, web browsing behavior, or past purchases.

Geographic Targeting

Also called geo-fencing, this practice involves selecting an audience for a digital advertising campaign based on ZIP codes, city, state, and country locations, or designated marketing areas (DMA).

Behavioral Targeting

A form of audience targeting that allows you as a marketer to display your ads to searchers based on their online behavior. These campaigns rely on the collection of data such as websites visited, search terms used, amount of time spent on specific websites, previous ad clicks, or other types of online interactions. Data is analyzed and audiences are segmented into categories, allowing advertisers to display personalized offers to individuals based on known actions.

Retargeting/Remarketing

an advertising strategy designed to get people who have previously shown interest in a product or service to return to an offer or landing page. This kind of “follow-up” or “second chance” can dramatically improve digital ad response rates and brand awareness.

Click-Through Rate (CTR)

Expressed as a percentage of total impressions, this statistic shows how often people who have been served an ad end up clicking on it. Advertising CTR is calculated by dividing the number of clicks an ad receives by the number of times it is displayed, converting the resulting number into a percentage. For example, if an ad has been shown 1,000 times and receives five clicks, the CTR is 0.5%. The higher the CTR number associated with the digital ad, the better its performance.

Have any questions about these definitions, or want to learn more about digital advertising and how it can help your business grow? Contact My Digital Advertising today to get the answers you need!

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