If you are looking into Advertising your small business, you may see the minefield of different phrases that make it very confusing to understand what is involved. In todays Magpie Mail, we are going to explain a few of these terms in a simple, easily understandable way!

These terms can be found across some of the biggest advertisement platforms like Google Ads & Facebook / Instagram but may have slightly differing names but ultimately are the same.

Advertisement Reach – Refers to the total amount of people that are exposed to an advert. These are unique viewers rather impressions which is the total amount of times an advert appears on screen – the same user may see an advert multiple times.

Advertisement Interactions – An interaction is the main action associated with an ad format. This means how many times the ad is clicked on. Interactions help determine whether your ads are meeting your performance goals. Depending on your ad type, you may pay per click of an ad (Cost Per Click – CPC).

Advertisement Impressions – An impression is counted each time your ad is served. Impressions help you understand how often your ad is being seen. Depending on your ad type, you may pay per 1000 views of an ad (Cost Per Mille – CPM).

Advertisement Interaction Rate (%) – “Interaction rate” or Click Through Rate (CTR) measures how often people interact with your ad after it’s shown to them. This helps measure your ad’s effectiveness. If you have a 5% rate, 1 in 20 people who see your ad are clicking on it.

Average Cost Per Click – This amount is the total cost of your ads divided by the total number of interactions. The lower this value is, the more clicks you are able to get for your budget.

These are the main metrics that are used to measure ad performance. If you want a Digital Marketing specialist to help develop your Advertising and Digital Marketing strategy, get in touch with Magpie IT & Digital Marketing for a free consultation.