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Knowing The Terms
 

click-through - the process of clicking through an online advertisement to the advertiser's destination.

click-through rate (CTR) - The average number of click-throughs per hundred ad impressions, expressed as a percentage.

conversion rate - the percentage of visitors who take a desired action.

cost-per-action (CPA) - online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations.

cost-per-click (CPC) - the cost or cost-equivalent paid per click-through.

CPM - cost per thousand impressions.

customer acquisition cost - the cost associated with acquiring a new customer.

hit - request of a file from a Web server.

hybrid model - a combination of two or more online marketing payment models.

impression - a single instance of an online advertisement being displayed.*

page view - request to load a single HTML page.

pay per click (PPC) - online advertising payment model in which payment is based solely on qualifying click-throughs.

pay per lead (PPL) - online advertising payment model in which payment is based solely based on qualifying leads.

pay per sale (PPS) - online advertising payment model in which payment is based solely based on qualifying sales.

site stickiness - the amount of time spent at a site over a given time period.

unique visitors - individuals who have visited a Web site (or network) at least once in a fixed time frame, typically a 30 day period.

Web site traffic - the amount of visitors and visits a Web site receives

banner ad - a graphical web advertising unit, typically measuring 468 pixels wide and 60 pixels tall (i.e. 468x60).

beyond the banner - online advertising not involving standard GIF and JPEG banner ads.

button ad - a graphical advertising unit, smaller than a banner ad.

HTML banner - a banner ad using HTML elements, often including interactive forms, instead of (or in addition to) standard graphical elements.

interstitial - an advertisement that loads between two content pages.

pop-up ad - an ad that displays in a new browser window.

pop-under ad - an ad that displays in a new browser window behind the current browser window.

rectangle ad - any one of the large, rectangular banner sizes suggested by the IAB.

rich media - new media that offers an enhanced experience relative to older, mainstream formats.

skyscraper ad - an online ad significantly taller than the 120x240 vertical banner.

text ad - advertisement using text-based hyperlinks.

surround session - advertising sequence in which a visitor receives ads from one advertiser throughout an entire site visit.

vertical banner - a banner ad measuring 120 pixels wide and 240 pixels tall.

affiliate - the publisher/salesperson in an affiliate marketing relationship.

affiliate directory - a categorized listing of affiliate programs.

affiliate forum - an online community where visitors may read and post topics related to affiliate marketing.

affiliate fraud - bogus activity generated by an affiliate in an attempt to generate illegitimate, unearned revenue.

affiliate marketing - revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.

affiliate merchant - the advertiser in an affiliate marketing relationship.

affiliate network - a value-added intermediary providing services, including aggregation, for affiliate merchants and affiliates.

affiliate software - software that, at a minimum, provides tracking and reporting of commission-triggering actions (sales, registrations, or clicks) from affiliate links.

exclusivity - contract term in which one party grants another party sole rights with regard to a particular business function.

payment threshold - the minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.

return days - the number of days an affiliate can earn commission on a conversion (sale or lead) by a referred visitor.

super affiliate - an affiliate capable of generating a significant percentage of an affiliate program's activity.

two-tier affiliate program - affiliate program structure whereby affiliates earn commissions on their conversions as well as conversions of webmasters they refer to the program

application service provider - provider of applications/services that are distributed through a network to many customers in exchange for a stream of smaller payments as opposed to one fixed, upfront price.

B2B - business that sells products or provides services to other businesses.

B2C - business that sells products or provides services to end-user consumers.

disintermediation - the elimination of intermediaries in the supply chain, also referred to as "cutting out the middlemen."

guerilla marketing - unconventional marketing intended to get maximum results from minimal resources.

free - without monetary cost.

first-mover advantage - a sometimes insurmountable advantage gained by the first significant company to move into a new market.

interactive agency - an agency offering a mix of Web design/development, Internet advertising/marketing, or E-Business/E-Commerce consulting.

marketing - Leave text here blank

marketing plan - the part of the business plan outlining the marketing strategy for a product or service.

network effect - the phenomenon whereby a service becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters

advertising network - a network representing many Web sites in selling advertising, allowing advertising buyers to reach broad audiences relatively easily through run-of-category and run-of-network buys.

caching - the storage of Web files for later re-use at a point more quickly accessed by the end user.

frequency cap - restriction on the amount of times a specific visitor is shown a particular advertisement.

house ad - self-promotional ad a company runs on its media outlets to put unsold inventory to use.

keyword marketing - putting your message in front of people who are searching using particular keywords and keyphrases.

rate card - document detailing prices for various ad placement options.

rep firm - ad sales partner specializing primarily in single-site sales.

run-of-network (RON) - ad buying option in which ad placements may appear on any pages on sites within an ad network.

run-of-site (ROS) - ad buying option in which ad placements may appear on any pages on sites within an ad network.

self-serve advertising - advertising that can be purchased without the assistance of a sales representative.

sponsorship - advertising that seeks to establish a deeper association and integration between an advertiser and a publisher, often involving coordinated beyond-the-banner placements.

underdelivery - delivery of less impressions, visitors, or conversions than contracted for a specified period of time.

 

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