WebMedia Quiz #1
Advertising Elasticity Of Demand - AED
A measure of a market's sensitivity to increases or decreases in advertising saturation. Advertising elasticity is a measure of an advertising campaign's effectiveness in generating new sales. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in advertising expenditures. A positive advertising elasticity indicates that an increase in advertising leads to an increase in demand for the advertised good or service.
Impression
A metric used to quantify the display of an advertisement on a web page. Impressions are used in banner advertising, which often pays on a per impression basis. Frequently, these are measured by Cost Per Mille (CPM), where mille refers to 1,000 impressions.
Advertising Federation of America (AFA)
A regional advertising group based on the U.S. East Coast that was formed uphold high advertising standards and also to protect and promote the advertising trade. Its predecessor organization, the National Federation of Advertising Clubs, was formed in 1905 by the merger of a number of local advertising clubs. The AFA and its West Coast counterpart the Advertising Association of the West (AAW) worked independently until 1967 to raise advertising standards through self-regulation and education.
Flighting
An advertising scheduling strategy in which a business alternates between running a normal schedule of advertising and a complete cessation of all runs. A company may use a flighting strategy as a way to save on advertising costs, while relying on the effect of its past advertisements continue to drive sales. As sales slow or more budget becomes available, the company will resume normal advertising.
Cost Per Click - CPC
Cost per click (CPC) is a method websites use to bill based on the number of times a visitor clicks on an advertisement. The alternative is cost per thousand (CPM), which is the number of impressions, or viewers, in thousands, regardless of whether each viewer clicks on the advertisement or not.
Cost Per Thousand (CPM)
Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.
Mobile Advertising
Mobile advertising is a method of advertising that appears on mobile devices such as smart phones, tablets or PDAs that have wireless connections. Advertising can take place as text ads via SMS, or banner advertisements that appear embedded in mobile web site, in downloaded apps or in mobile games. Mobile technology used by companies such as Google and Facebook tailor mobile advertisements based on individual's web browsing history, geographic location, and with data collected by shopping habits. Because mobile devices typically have smaller screens than computers or laptops, this form of digital advertising is usually optimized for small displays by being concise.
Advertising Appropriation
The portion of the total marketing budget that is allocated to advertising over a specific time period. The advertising appropriation policy for a company may be based on any one of a number of approaches. For example, spending an amount on advertising that is a fixed percentage of sales or based on the ad spend level of the competition.
Media Buy
The purchase of advertising from a media company such as a television station, newspaper, magazine, blog or website. The price of the media buy depends on the specifics of the advertising campaign.