Some Important Advertising Acronyms
| Term | Explanation |
|---|---|
| CPM (Cost Per Mille (thousand)) | CPM is the cost an advertiser pays for 1,000 views or impressions of their ad. It’s great for building brand awareness because it focuses on how many times your ad is seen, not whether users click or interact with it. |
| CPC (Cost Per Click) | CPC means you only pay when someone clicks on your ad. It’s a popular pricing model in digital advertising, especially for campaigns focused on driving website traffic or product views. |
| CTR (Click-Through Rate) | CTR shows how often people click on your ad after seeing it. It’s calculated by dividing clicks by impressions. A high CTR usually means your ad is interesting and relevant to your audience. |
| CPV (Cost Per View) | CPV is used in video advertising. You’re charged only when someone watches your video ad, typically for a few seconds or more. It’s a good way to ensure people are actually engaging with your content. |
| CPCV (Cost Per Completed View) | CPCV means you only pay when a viewer watches your entire video ad. It ensures you get full attention from viewers, making it ideal for storytelling or detailed product ads. |
| VTR (View-Through Rate) | VTR shows how many people completed your video ad after starting it. It helps you understand how engaging your video is and whether people are watching it all the way through. |
| CPI (Cost Per Install) | CPI is mainly used in app advertising. You pay only when someone installs your app after clicking on the ad. It’s useful when your goal is to get more users to download your app. |
| CPE (Cost Per Engagement) | CPE means you pay when users actively engage with your ad—like clicking, sharing, or reacting. It focuses on genuine interest and interaction rather than just views. |
| ER (Engagement Rate) | ER measures how much your audience interacts with your content. It includes likes, shares, comments, and clicks. A high engagement rate means your content is connecting well with your audience. |
| ROAS (Return on Advertising Spend) | ROAS tells you how much revenue you earn for every rupee spent on advertising. If you spend ₹1,000 and earn ₹5,000, your ROAS is 5x. It’s a key metric for measuring ad performance and profitability. |
| ROI (Return on Investment) | ROI measures the overall profit you get from your total marketing spend. It includes all costs and helps you understand whether your advertising is truly adding value to your business. |
| CPA (Cost Per Acquisition) | CPA is the cost of getting a customer to take a specific action—like making a purchase or signing up. It helps you know how much you’re spending to win each customer. |
| CPL (Cost Per Lead) | CPL is used when your goal is to generate leads, such as form submissions or sign-ups. You pay only when someone shares their contact details, helping build your potential customer list. |
| VPAID (Video Player-Ad Interface Definition) | VPAID is a type of video ad format that allows interactive elements within video ads. It helps advertisers create richer, more engaging video ad experiences and gather detailed performance data. |
| IBV (In-Banner Video) | IBV is a video ad that plays inside a regular display ad banner space. It combines visuals with motion to grab attention without needing a separate video player. |
| VAST (Video Ad Serving Template) | VAST is a set of standards that helps video players communicate with ad servers. It ensures your video ads run smoothly across different websites, platforms, and devices. |
