eCommerce Terminology Part-I

Pay Per Click(PPC)/Cost Per Click : Internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.

Cost per Click (CPC) : The amount of money you need to spend to get people to the top of your marketing funnel, or in other words to make people aware of your business. Often businesses use services like AdWords to drive CPC traffic.

Cost per Action (CPA) : sometimes known as Pay Per Action or PPA; also Cost Per Conversion is an online advertising pricing model, where the advertiser pays for each specified action - this could include (but not limited too): an impression, click, form submit (e.g, contact request, newsletter sign up, registration etc), double opt-in or sale.

Cost per lead (CPL) : A payment model for online advertising. When a prospective client accesses a vendor's site through an advertisement posted on an affiliate site and the prospect leaves enough contact data to be considered a viable sales lead, the affiliate will be paid a preset amount, which becomes the cost for that lead.

Pay per Lead (PPL): A type of affiliate marketing program where the advertiser pays the affiliate based on conversion of leads, such as a file or software download, completion of a sign-up form for a newsletter, trial offer sign-up, or other desired action. If a customer follows an affiliate link to the advertiser's site and completes the required action in accordance with the affiliate agreement, the affiliate is paid.

Cost per Mille/Cost Per thousand (CPM) : used by Internet marketers to price ad banners. Sites that sell advertising will guarantee an advertiser a certain number of impressions (number of times an ad banner is downloaded and presumably seen by visitors.), then set a rate based on that guarantee times the CPM rate. A Web site that has a CPM rate of $25 and guarantees advertisers 600,000 impressions will charge $15,000 ($25 x 600) for those advertisers' ad banner.

Cost per Impression (CPI) : Is a term used in online advertising and marketing related to web traffic. It refers to the cost of internet marketing or email advertising campaigns where advertisers pay for every time an ad is displayed. Specifically, it is the cost to offer potential customers one opportunity to see the advertisement. CPI is the closest online advertising strategy to those offered in other media such as television or print, which sell advertising based on estimated viewership or readership.

Call to Action (CTA):  Is a banner, button, or some type of graphic or text on a website meant to prompt a user to click it and continue down a conversion funnel. It is an essential part of inbound marketing as well as permission marketing in that it actively strives to convert a user into a lead and later into a customer. The main goal of a CTA is a click or a scan in the case of a qr code, and its success can be measured via a conversion rate formula that calculates the number of clicks over the times the CTA was seen.
Some Common Terminology associated with eCommerce/Internet World -Advertising/Marketing/Buying/Conversion/Web Analytics.

Cost per order (CPO) : also called cost per purchase, is the cost of internet advertising divided by the number of orders. Cost per order, along with cost per impression and cost per click, is the starting point for assessing the effectiveness of a company's internet advertising. Mathematical calculation of the costs incurred in selling an item divided by the number of orders received. It is used to examine the relative profitability of various promotions.

View Through Rate (VTR): measures the number of post-impression response or view through from display media impressions viewed during and following an online advertising campaign. Such post-exposure behavior can be expressed in site visits, on-site events, conversions occurring at one or more Web sites or potentially offline.

Click Through Rate (CTR) : way of measuring the success of an online advertising campaign for a particular website as well as the effectiveness of an email campaign by the number of users that clicked on a specific link.

Customer Acquisition Cost (CAC) : how much money you spend to actually acquire a new paying customer for your business. This is typically expressed as a ratio, that is the sum of total costs of sales, marketing and associated overheads, divided by the number of acquired customers during a given period of time.

Exit Rate (ER): is the percentage of people who left your site from that page. Exits may have viewed more than one page in a session. That means they may not have landed on that page, but simply found their way to it through site navigation.

Bounce Rate (BR): is the percentage of people who landed on a page and immediately left. Bounces are always one page sessions. For example, John lands on your homepage, www.xyz.com, and leaves your site without visiting any other pages on your website – that’s a “Bounce”. The “Bounce Rate” is calculated by taking the total number of Bounces (to your website or a set of pages, depending on what you’re looking at), and dividing it by the total number of Visits (to your website or a set of pages, depending on what you’re looking at).

In Email Marketing ,Open Rate: The email open rate is a measure primarily used by marketers as an indication of how many people "view" or "open" the commercial electronic mail they send out. It is most commonly expressed as a percentage and calculated by dividing the number of email messages opened by the total number of email messages sent (excluding those that bounced)

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