Cost per action (CPA)

Conversion Rate (CR)

Return on investment (ROI)

Cost Per Lead (CPL)

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Tags: Digital Marketing, Social Media

Mohammad Al-Khateeb

Monday - November 15, 2021

Here are some digital marketing abbreviations every junior marketing  professional must know.

Cost per action (CPA) is calculated as the cost divided by the number of actions being measured. So for example, if the spend is $150 on a campaign and the actions attributed to this campaign is 10, this would give the campaign a cost per action of $15.


Conversion Rate (CR) The average number of conversions per ad interaction, shown as a percentage. Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad interactions that can be tracked to a conversion during the same time period.


Return on investment (ROI) is a metric used to understand the profitability of an investment. ROI compares how much you paid for an investment to how much you earned to evaluate its efficiency.


Cost Per Lead (CPL) is a digital marketing pricing model whereby the advertiser pays a pre-established price for each lead generated.


Cost Per Sale (CPS) is a metric used by advertising teams to determine the amount of money paid for every sale generated by a specific advertisement. In a digital campaign, the consumer clicks through an advertisement to the business's website in order to complete the transaction.


Click-Through Rate (CTR) is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR. For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%.


Cost Per View (CPV) is a bidding method for video campaigns where you pay for a view. ... You set CPV bids to tell Google the maximum amount you're willing to pay for each view.


Google Display Network (GDN) is a group of more than 2 million websites, videos, and apps where your ads can appear. Display Network sites reach over 90% of Internet users worldwide. The Google Display Network can help you reach people with targeted Display ads while they're browsing their favourite websites, showing a friend a YouTube video, checking their Gmail account or using mobile devices and apps.


Cost-per-click (CPC) bidding means that you pay for each click on your ads. It’s the highest amount that you're willing to pay for a click on your ad.


Cost Per Thousand (CPM), also called cost per mille, is a marketing term used to denote the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.


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