I-Marketing Test - Advertising & Metrics Definitions.txt
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IMPRESSIONS: An impression is generated each time an advertisement is viewed.
- CPM - Cost per thousand impressions:
- Advertising Cost / Impressions Generated (in thousands).
- Makes it easier to work with the resulting dollar figures that would be possible on the basis of cost per single impression.
NET REACH: # of people who receive an advertisement.
FREQUENCY RESPONSE FUNCTION
FREQUENCY RESPONSE FUNCTION: Used to model the reaction of a population to exposure to an advertisement.
LINEAR FREQUENCY RESPONSE FUNCTION
Linear: All advertising impressions are equally impactful. Often unrealistic especially for complex products.
THRESHOLD FREQUENCY RESPONSE FUNCTION
"Threshold: A certain number of impressions are needed before an advertising message will sink in. Often used, as it is simple and intuitive."
LEARNING CURVE FREQUENCY RESPONSE FUNCTION
"Learning Curve: An advertisement has little impact at first but gains force with repetition and then tails off as saturation is achieved. Difficult to test for accuracy."
SHARE OF VOICE
"SHARE OF VOICE: Quantifies the advertising "presence" of a brand, campaign, or firm in relationship to total advertising in a market.
PAGE VIEWS: The number of times a web page is served.
CLICK THROUGH RATE
CLICK THROUGH RATE: # of click-throughs as a fraction of the number of impressions.
COST PER CLICK
"COST PER CLICK: Advertising cost, divided by number of clicks generated.
COST PER ORDER
"COST PER ORDER: Advertising cost, divided by number of orders generated.
COST PER ACQUISITION
- COST PER ACQUISITION:
- Advertising Cost / # of Customers Acquired
VISITS: The number of unique viewings of a website. Used to measure audience traffic on a website.
VISITOR: The # of unique website viewers in a given period.
ABANDONMENT RATES: The rate of purchases started but not completed.
BOUNCE RATE: Fraction of website visitors who view a single page. Used as an indicator of site's relevance and ability to generate visitor interest.
FRIENDS / FOLLOWERS
"FRIENDS / FOLLOWERS: # of individuals joining a social network.
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