Digital advertising ecosystem keeps adapting itself in the light of new developments and trends. This situation leads the way for the diversification of online marketing terminology. Sometimes it’s not so easy to follow all these changes and become familiar with each term, but it’s especially important for advertiser brands to be able to master the digital advertising jargon.
On the other hand, in the ever-developing digital advertising world, confusion about concepts is a frequently encountered situation. But it is undoubtedly pretty critical to know the exact meanings of terms, and the links and differences between them for a successful campaign.
When it comes to digital advertising, the most highlighted terms are impressions, clicks, CPC, CPM and PPC. Here are the meanings of these terms and the fundamental differences between them…
Impressions versus Clicks
Impressions and clicks are encountered as two of the most confused concepts. The term impression, which can be described in the sector as the display frequency of any ad, represents each moment an advertisement is shown as a result of a search or on a website. Accordingly, one can make the judgment that when the term impression is encountered, this concept presents the number of displays of an advertisement. A high number of displays of an ad can be understood as a favorable situation, especially when the advertisements aim to provide brand awareness.
The term click gives information about the number of times the ad visual has been clicked on. Thereby, unlike impressions, when the click rates are concerned, one can reach the conclusion that online users did not only display the advertisement but also were routed to a landing page by clicking on the advertisement. High click rate of an advertisement prepared for purchasing purposes, means that users have a potential of purchasing big enough for them to interact with the brand.
CPC versus CPM
There are also significant differences between CPM (Cost Per Mille) and CPC (Cost Per Click) which are among the most commonly preferred charging models in online advertisements. Knowing these models and the difference between them can influence the success of advertising campaigns. For example, CPM, the model of the pay-per-1000 view, provides efficiency in ads specifically aimed at creating brand awareness and increasing interaction rates. Also, it is useful to know that the broadcaster is paid per 1000 views of the ad in CPM.
CPC, unlike CPM, is encountered as an advertising model aimed at increasing conversion. On the other hand, in the case that users are routed to the website of the advertiser or another landing page when they click on the advertisement, costs of actualized clicks are compensated by the advertiser.
PPC versus CPC
PPC, which is the abbreviated form of the term Pay Per Click, can be defined as a digital advertising channel aimed at converting users to customers by directing online traffic to a website. PPC advertising enables businesses to give offers with popular keywords searched by their target audiences through search engines. In addition, PPC ads applied on social media platforms can also be used to display advertisements by defining a certain frame such as the demographic characteristics and interests of the target audience.
PPC advertising can be argued to provide a basis for businesses to reach broader target audiences as it enables advertisers to obtain lead. Besides, the payment amount can be fixed in PPC and the worth of every click can vary based on variables such as competition and search volume. In CPC, the purpose is always to reach to most effective result with most convenient cost. If you would also like to reach your brand goals as soon as possible with the correct advertising model, you can create your ReklamStore account now.