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Banner Advertising Terminology

When you decide you are ready to dive into web banner advertising it is important to get the lingo down so that you can understand and get the most out of your advertising banners. Here are some important key terms to get you started:

Page Views or Page Impressions: the number of times a page is requested.

Traffic: the number of page views per month to a web site.

Creative: refers to the graphics and design of your custom banner sign.

Rotating Ad: an advertising banner design on the page that changes every time the page is reloaded.

Static Ad: a banner ad creation that does not change, but remains the same every time the page is reloaded.

Text Ads: advertisements made up of text, which are backed by hyperlinks and when clicked on will take the potential customer to the advertiser’s web site. There is much debate about which is better for advertising – text ads or banner ads. We will address that in an upcoming post.

Banner Views: the number of times a page view lasts long enough for a banner ad to completely download.

Click Through: when a potential customer clicks on your banner ad and goes to your web site.

CTR: the click through rate that is measured in percentages, it is the percentage of visitors to a web site who actually click through a banner advertisement. This is typically a very low percentage with anything over 1% being very good.

Conversion Rate: the number of customers who click through to your web site and then actually make a purchase, essentially converting them into customers.

Landing Page: the first page that a potential customer sees upon clicking on your advertising banner. A landing page is like the short version of the message you want to convey, it gives basic information and provides a call to action for the potential customer.

CPC: the cost per click. If you set up a CPC banner ad advertising arrangement, that means that you will only pay for your ad space when someone actually clicks on your banner ad to go to your web site.

CPM: means cost per thousand with the “M” representing the Roman numeral for one thousand. If you agree to CPM banner ad rates, you will be charged based on every thousand page views the web site your banner ad is on receives regardless of click throughs to your web site.

Cost Per Sale: a way of calculating how much cost a company puts into one sale. Banner advertising is included in that cost.

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