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← Terms to Know: Ads | Monetization Strategies | App Monetization | Udacity

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Showing Revision 1 created 09/06/2016 by Udacity Robot.

  1. We just threw a lot of terms at you in
    that last video, so let's take a closer
  2. look at common metrics and acronyms
    used when it comes to advertising.
  3. There are five we'll be exploring,
    CPC, CPM, eCPM, CPI and CTR.
  4. Knowing the definitions for each of
    these terms is extremely important,
  5. especially as you're evaluating the
    success of using ads in your product.
  6. Let's start with CPC or cost per click.
  7. Now, this is essentially
    how much an advertiser pays
  8. you if a visitor to your site or a user
    of your product clicks on their ad.
  9. The acronym CPM is a little tricky.
  10. This stands for cost per thousand and
  11. the M actually is the Roman numeral for
    a thousand.
  12. CPM is how much you earn for
    every 1000 views of an add.
  13. This can also be referred to as CPI or
  14. cost per impression,
    another item from our list.
  15. eCPM is then the estimated cost per
    thousand views and is calculated by
  16. dividing your total revenue by the total
    number of views of the ad in thousands.
  17. eCPM is helpful when you're evaluating
    the performance of different ads on your
  18. site, and you want to estimate how much
    you'll make as the views increase.
  19. Lastly, we come to click-through rate or
  20. CTR, this metric measures how many
    users have actually clicked on an ad.
  21. It's calculated by dividing the total
    number of clicks by the total number of
  22. impressions or views, and multiplying
    that number by 100 to get a percentage.
  23. So now that we've gone through each
    of these definitions, let's test your
  24. memory and see if you can remember
    these three-letter acronyms.
  25. Fill in the full names for each of these
    acronyms using the provided boxes.