Glossary

CPA – Cost per Action
(sometimes known as Pay Per Action or PPA) is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.

CPC – Cost per Click-through
is the amount of money an advertiser pays for a single click on its advertisement that brings one visitor to its Website. Same as PPC below…

CPL – Cost per Lead
campaigns wherein advertisers pay for interested leads generated, usually measured in the aqusition of the contact information of a person interested in the advertiser’s product or service.

CPM – Cost per Thousand
(in Latin mille means thousand), is a commonly used measurement in on-line advertising, sold on the basis of what it costs to show the ad to one thousand viewers (also noted as CPT). CPM can also be used by purchasers of fixed-cost ads to calculate the net CPM by dividing the initial cost by the number of resultant views.

CPI – Cost per Impression
related to CPM, or Cost per thousand impressions. An online advertisement impression is a single appearance of an advertisement on a web page. Each time an advertisement loads onto a user’s screen, the ad server may count that loading as one impression.

CRM – Customer Relationship Management
is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects.

CTR – Click-through Rate
is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the “number of users who clicked on an ad” on a web page by the “number of times the ad was delivered” (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.

LBS – Location-based Services
(often called location-based technology) answer three questions: Where am I? What’s around me? How do I get there? They determine the location of the user by using one of several technologies for determining position, then use the location and other information to provide personalized applications and services.

PPC – Pay per Click
is an Internet advertising model used on Websites, in which advertisers pay their host only when their ad is clicked. Some PPCs are flat-rate models while Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter all operate under a bid-based PPC model.

SEO – Search Engine Optimization
is the process of improving the volume or quality of traffic to a Web site or a Web page from search engines via “natural” or un-paid (“organic” or “algorithmic”) search results as opposed to other forms of search engine marketing (SEM) which may deal with paid inclusion. The theory is that the earlier (or higher) a site appears in the search results list, the more visitors it will receive from the search engine.

SMO – Social Media Optimization
is the methodization of social media activity with the intent of attracting unique visitors to website content.

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