The digital world has taken advertising to benefit it, and to understand it, today, at Sepa Publicidad, we want to talk about the base terminology to keep in mind; check out the full article!

When integrating into the digital world it is necessary to understand that one of the main advantages of these digital communication channels is the measurement, it is for this reason that it is considered important and relevant to be clear about the terminology of digital advertising.

Now, making this point clear, next, know the basic terms of digital marketing:

  • Impressions: This is the measure that tells us how many times a publication or advertising has been shown, for example, once the web page is loaded, that already counts as an impression, now well, one of the ways of marketing on the Internet is through payments of a fixed cost per thousand impressions served. The formula that describes it is Cost / CPM x 1000
  • Click: This term represents the user’s response action on an interactive impact. The formula that describes it is clicks / impressions.
  • Click-Through-Rate CTR: It is in charge of informing us the effectiveness of the action in terms of clicks, it is calculated by dividing the number of clicks by the number of impressions within a particular period. The formula that describes it is clicks / impressions.
  • CPM: Cost per thousand is the economic measure that indicates the cost to be paid per thousand impressions. The formula that describes it is cost / impressions x 1000.
  • CPC: Cost per click indicates the cost we pay for each of the clicks that are generated in advertising, is known as the purchase system of search engine marketing, the system offers advertisers the opportunity to offer services and products previously segmented through the search for keywords. The formula that describes it is cost / clicks.
  • CPV, CPL and CPO: Cost per action, cost per lead and cost per order, it is known as the third charging system in online advertising, being an advertiser, you must pay when the action previously defined on the web is carried out. The formula that describes it to us is cost / lead or actions
  • Cost per Qualified Lead: We will explain this term with an example, the objective of a medical entity is to sell a special product to treat diabetes, for this, customers must fill out forms, each of those customers who fill out the form will count as a lead, but if the customer reports that he is diabetic, it will count as a qualified lead. The formula that describes it is cost / qualified action.

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