Glossary of Internet Advertising Terms

There are 5 entries in this glossary.

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Term Definition
Click

When a visitor clicks their mouse on a banner ad, they are transferred to the advertiser's site. The number of responses to a banner ad is sometimes refereed to as the number of "clicks".
Cookies

Small files written to your computer when you view a banner ad, visit a website, or put a product in a shopping cart. This helps the banner server to keep from showing you the same ad, or perhaps show you ads you might be more interested in seeing. Cookies are controversial, but are here to stay; too much of the Web is run by cookies to get rid of them. Cookies also allow an advertiser to track which banner ad a visitor saw that brought him to the advertiser's site, and which banner ads resulted in actual sales.
CPM

A metric from the print advertising, meaning "Cost Per Thousand," using the Roman numeral "M" to stand for one thousand. A price of $20 CPM means, $20 for every thousand times a banner is displayed.
CTR (Click Through Rate)

This is a basic measure of how effective an ad is. CTR's range from the industry average of about 0.20% to as high as 5% or 10%. As a general rule, the more targeted the site, the higher the CTR. For example, you'd expect an ad for "Tennis Balls" to get a higher CTR on a tennis site than on a general sports site. On a general site such as a News website they would get an even lower CTR.
Impression

Refers to the number of times a banner has been viewed. Almost the same as "page views," but some banner server programs don't count the banner view unless the visitor stays on the page long enough for the banner to be fully downloaded from the banner server.
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