In this series, we are bringing it “back to basics.” As the worlds of marketing and higher education continue to shift with the times, let’s brush up on the skills and knowledge necessary for a solid foundation built to sustain fundamental change.
Sifting through digital media alphabet soup can sometimes get confusing as we talk about CTR, CPC, CPI, CPM … Do you ever find yourself referencing Google to triple check yourself? No need to do so anymore. Here’s your cheat sheet for the most common acronyms and terms we use in digital media:
Impression: when your ad is loaded on a page, but not necessarily interacted with
Click: when a user clicks on an ad
CTR: Click-through rate (Found by dividing clicks by impressions, this measurement is a good indicator of ad/creative performance.)
CPC: Cost per click (Calculated by dividing cost by clicks, this figure is a good indicator of the amount of competition on a term.)
CPM: Cost per thousand impressions. (This is most often used as part of a display buy.)
Conversions/Inquiries/Leads: occurs when someone fills out the form on a landing page
CPI: Cost per inquiry (An inquiry is a form submission on a pay-per-click landing page. Cost per inquiry is calculated by dividing spend by inquiries.)
CPL: Cost per lead (A lead is a form submission on a PPC landing page. The term “lead” and “inquiry” are interchangeable. Cost per lead is calculated by dividing spend by inquiries.)
CPA: Cost per acquisition (This is calculated by dividing spend by conversions.)
Minisite: This is where we direct paid traffic. A minisite is conversion-focused with reduced content and heightened focus on the form.
Conversion Rate: inquiries divided by clicks. This is a good indicator of minisite performance.
View-Through Conversion: This is when a user sees your ad, does not click, and converts down the road through a different channel.
Position: This is where you’re ranking on the page for search. We ideally want to remain in position 1-4 given the layout of ads within Google.
Quality Score: This is a search engine measurement for how relevant your ad, keywords and landing page are to the user seeing the ad. It is calculated for each search and each keyword and based on CTR, landing page experience and relevancy. On a scale of 1-10, with 10 being the best, the higher your score, the better CPCs for higher positions.
Now that you’ve brushed up on the lingo, we will break down the elements of a solid digital media marketing mix in the next installment of Back to Basics.