10 acronyms every digital advertiser should know.

Have you ever walked into a meeting and realized you just found a portal into another dimension? If you have walked into a digital media meeting then you know exactly what I am talking about. Famous for explaining acronyms with acronyms, the jargon can be more than overwhelming. To help keep you on planet earth at your next digital meeting, I compiled this list of ten most commonly used digital acronyms.

CMS – CONTENT MANAGEMENT SYSTEM

content-management-system-img-01

These systems are platforms that aggregate and organize data in an easy to use way. By creating this interface, users can concentrate on creating content as opposed to website coding. WordPress, Drupal, and Tumblr are all examples of CMS interfaces.

CPA – COST PER ACTION / COST PER ACQUISITION

Advertisers pay per a specified action or acquisition such as registered users, documents downloaded, photos taken, etc. If an action such as registration is particularly difficult due to multiple forms of verification, a different CPA may be used to determine actual interest in the site. At the end of the day, this is typically the bottom line showing how many paid customers were acquired as a result of an effort.

CPC – COST PER CLICK / PPC – PAY PER CLICK

This is one of the most commonly used cost determinants in which advertisers pay per clicks on the ad.

CPP – COST PER POINT

This is a little more complicated than the previous two. With CPP, advertisers pay to make an impression on 1 percent of the total population or, in another acronym, the GRP (gross rating point). The GRP is a measure of the size of an advertising campaign but it is not a measure of the size of the audience reached.

CPM – COST PER THOUSAND

Advertisers pay to make 1,000 ad impressions on their target audience. The “M” is especially confusing because it used to stand for mille. What is mille you ask? Mille translates to thousand in Old French and Latin.

CTR – CLICK-THROUGH RATE

This is the percentage of users who clicked on (aka clicked-through) the ad.

ctr

DMA – DESIGNATED MARKET AREA

The DMA is a specified region where the population can receive the same (or similar) offerings from everything such as television, radio, newspaper and online media. Confusingly, one market area may spill into another. This means that someone on the edge of one market area might receive a message designated for another.

Time zones are an easy way to understand this concept. Although business is conducted in a specific time zone, someone can stand over the line and be in two time zones at once.

US Map of Nielsen Media Markets
Map of Nielen Designated Marketing Areas (DMA) specifically highlighting the Los Angeles DMA.

MRI – MEDIAMARK RESEARCH INC.

Do you like Excel? Do you like data? If so, this is the acronym for you! Mediamark Research Inc. (MRI) is a research organization that provides in-depth data to media planners through surveys covering over 26,000 U.S. residents. This detailed information allows media planners to analyze subsets of demographics.

ROI – RETURN ON INVESTMENT

Everyone wants a high ROI because this number not only shows the benefit received from an investment but it makes you look good to your boss. To find ROI, use the following calculation:

roi

UX – USER EXPERIENCE

UX refers to the usability of a product when considering all qualitative aspects such as ease of use or intuitiveness. UI (User Interface) is commonly used with UX but refers more to the qualitative aspects of the site asking questions such as, “Do the buttons, links, and functions work?”

The following image breaks down product, UX, UI, server and database into easy to understand cereal terminology.

product

All-in-all digital can be a confusing space to work in. It’s a constantly evolving universe with acronyms flying around everywhere. If you are new to digital media, be prepared as these ten acronyms are only the beginning of your journey into the digital dimension.

Acronym fan? Check out these resources to decode them all:

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