The online advertising world uses all sorts of jargon to describe different bits of the process. If you’re confused by a term, you should be able to find your answer here.
3-Way Matching — A method of blending ads into a Web page by matching the ad’s background color, font color and font size with the surround page content.
AdSense Code — The instructions to display ads on a Web page are contained within a piece of HTML code that is copied from Google’s AdSense site. The code must be pasted onto each page on which you wish to display an ad.
Ad Rank — The order in which the ads appear in an ad unit is determined by Google. The ads at the top of the list should give you the most money based on cost-per-click and clickthrough rate.
Ad Unit — A group of ads displayed together as a set. You can display up to three ad units on one page, in addition to a search box and referral buttons.
Alternate Ads — Pre-determined ads that are served in place of public service ads when Google is unable to find contextual ads.
Channel — A method of tracking results across pages, sites, domains or any criteria set by a publisher.
Click — A click by a user on an ad. In stats reports, the clicks column may include invalid clicks but not clicks on public service ads.
Clickthrough Rate (CTR) — The number of clicks an ad receives divided by the number of impressions the ad receives. The higher your CTR, the better.
Contextual Advertising — Ads that are related to the content of the Web page on which they appear (as opposed to traditional banner ads that are served regardless of the content of the page).
Cost-Per-Click (CPC) — The amount an advertiser pays for each click his/her ad receives. AdSense uses a range of different types of Cost-Per- Click:
Maximum Cost-Per-Click — The maximum amount an advertiser is prepared to pay for each click.
Actual Cost-Per-Click — The amount an advertiser is charged for each click. The rate will vary according to the Smart Pricing rate of your site and the bidding price of competitors. Google always tries to charge advertisers the lowest rate possible.
Cost-Per-Thousand Impressions (CPM) — The amount an advertiser pays each time his/her ad is displayed. Like CPC, AdSense refers to different types of CPM:
Maximum Cost-Per-Thousand Impressions — The maximum amount an advertiser is charged for an impression.
Actual Cost-Per-Thousand Impressions — The amount an advertiser is charged for each impression. In general, this will be one cent more than the price required to keep the ad in its position on the page.
Effective Cost-Per-Thousand Impressions (eCPM)— The cost of
1,000 ad impressions. Used by publishers to compare income rates across channels (and advertising programs). To calculate your eCPM, simply divide earnings by impressions (so $200 earned from 50,000 impressions would yield an eCPM of $4.00).
Filters — Used by publishers to block specific ads or groups of ads.
Google AdWords — Google’s advertising program. Advertisers submit their ads to Google, specifying their maximum CPC and total advertising budget. The ads are distributed across AdSense publishers.
Impression — A single display of an ad somewhere on Google’s ad network. Page Impression — A single display of an ad on a publisher’s Web page. Pay-Per-Click — Often used interchangeable with Cost-Per-Click. Refers to a method of online advertising in which advertisers pay only when action is taken by the user and not only when an ad is served (CPM).
Public Service Ads (PSA) — Ads for non-profit organization that are served on Web pages when Google is unable to find relevant ads or cannot read the content on a Web page. Publishers are not paid for displaying public service ads.
Publisher — A member of AdSense whose sites display the AdSense code and Google’s ads.
Search Engine Optimization (SEO) — A process of raising a site’s rankings in the various search engines. This usually involves creating links from other sites, targeting keywords and building traffic.
Site Targeting — A strategy used by advertisers to choose on which sites they would like their ads to run.
Section Targeting — Lines of code used to focus Google’s robots on specific, keyword-rich areas of a Web page.
Smart Pricing — A system used by Google to determine the value of the traffic sent by your site to advertisers and to price your ads accordingly. Sites that deliver high conversion rates to advertisers earn more than sites with low conversion rates.
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