RPB Marketing | Content Marketing & Growth Marketing
It’s happened to all of us that when we were first introduced to social media ads, we came across media buying concepts and automatically freaked out. They are a lot. Moreover, several of them are too similar.
That’s why we bring you 10 basic concepts that everyone who works with ads should know.
CPA: Cost Per Acquisition
It is one of the main variables that refers to the number of people who become our leads and buy through our ads.
CPC: Cost Per Click
Another of the fundamental Media Buying Concepts. It is an engagement metric that measures the effectiveness of a campaign by the number of users who click on an ad. This metric tells us how much we pay each time someone clicks on our ads.
CTR: Click-Through Rate
Among Media Buying Concepts it refers to the percentage of people who clicked compared to those who saw the ad.
CPM: Cost Per Mille
This concept is less used but equally important. It is very similar to CPC. The difference is that it measures the price of clicks per thousand users. It is useful when we have large campaigns with high budgets that bring a lot of traffic.
ROI: Return on Investment
This is the economic value we receive back after launching a campaign. It compares the profits generated by a campaign concerning its initial cost.
ROAS: Return on Ad Spend
This one is similar to ROI. Here we measure the profit generated for every dollar invested. It helps to study the effectiveness of a campaign in terms of budget management in a campaign.
KPI: Key Performance Indicator
It is a measurable value that indicates us how effectively our campaign is achieving its objectives. KPIs help us track progress and guide decision-making by focusing on the most critical aspects of performance, such as sales growth, customer retention, or engagement rates.
VTR: View-Through Rate
This now is not between the well-known Media Buying Concepts. An important parameter when launching video ads. It measures in percentages the amount of people who saw an ad and its respective cost. It’s an ideal indirect measure to study conversions. Its behavior is very similar to CTR (Click-Through Rate).
CPV: Cost Per View
Another of the Media Buying Concepts related to video ads. Here we study how much an ad costs us depending on the number of views a video has generated. It also has a similar behavior to CPC (Cost Per Click).
RTB: Real-Time Bidding
One of the least used Media Buying Concepts. It is an auction of media space. Whoever pays the highest price for a space gets the ad. It is ideal for targeting and the correct placement of a budget in a campaign.
Do we use these Media Buying Concepts at RPB Marketing?
Yes, all of them. These are Media Buying Concepts we follow when executing and monitoring a Media Buying campaign. It helps us to see the targeting, investment, and engagement generated by each campaign.Even in other areas of Digital Marketing such as Email Marketing or even SEO, these variables measure the effectiveness and performance of a campaign.
