The Lingo: The Language of Digital Advertising

What are the terms you need to know as a digital advertiser?

Traffic Temperature

The classification of the audiences you target with your digital advertising campaigns are cold, warm, or hot.

Cold Traffic

Audiences targeted with ads that have no prior experience with your brands, products, or people. Ads targeted at cold audiences introduce the business to the prospect and establish trust and authority in an effort to build awareness.

Warm Traffic

Audiences targeted with ads that are aware of your brands, products, or people but have not yet converted to a customer or haven’t purchased in a long period of time. Ads targeted at warm audiences should be designed to convince a prospect that you have the superior solution.

Hot Traffic

Audiences targeted with ads that have previously purchased. These audiences know your reputation and have used your product or service. Ads targeted at hot audiences should convert a customer into a high-ticket or repeat buyer. Most ad campaigns to hot audiences will be conducted through retargeting.

Retargeting Campaign

An ad campaign designed to reach customers and prospects with a message and offer that is based on their previous behavior. That behavior might be an opt-in to a lead form, a purchase, or a visit to a page on your website. Ad retargeting is available from ad platforms such as Facebook and Google.

Frequency

How many times has an ad been shown to the people you’re targeting. Ideally, you want to keep the frequency below 10. If people continue to see the same ad too many times, it can become annoying and can lead to ad fatigue.

Relevance

The Facebook metric calculates how relevant your ad is to your target audience. In Google Adwords, it’s called “quality score.” It measures people’s engagement level and how much they like your ad.

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The Metrics You’ll Use to Measure Success

Click-Through Rate (CTR)

The number of clicks divided by the number of impressions on an ad and any other call-to-action. The higher the click-through rate, the more prospects you will be moving from stage to stage in the customer journey.

Cost Per Acquisition of Customer (CPA)

The amount of advertising spend divided by the number of customers generated. Drill down on this metric by calculating CPA by by traffic campaign, traffic source, and more.

Cost Per Lead (CPL)

The amount of advertising spend divided by the number of leads generated. Once again, drill down on this metric by calculating CPL by traffic campaign, traffic source, and more.

Cost Per Click (CPC)

The amount of advertising spend divided by the number of clicks on the ad, ad set, or ad campaign. Believe it or not, this is the least important of these four metrics.

Cost Per 1,000 Impressions (CPM)

The amount it costs to reach a million people. When you’re creating a campaign to extend your reach or build brand awareness, this is the metric to use.

References:

Digital Marketer. (n.d.). The Ultimate Guide to Digital Marketing. Course Hero. Retrieved January 25, 2022, from https://www.coursehero.com/file/94978188/Ultimate-Guide-to-Digital-Marketingpdf/