It doesn’t matter if you are new to the world of Mobile Advertising or have been playing the game for a while, sooner or later you will come across acronyms that will leave you scratching your head. Not to worry, we will help you navigate the most important ones!
PPC (pay per click): You pay a fee to the ad network every time a user clicks on your ad. This way you don’t end up paying for ads that aren’t getting any attention.
CPC (cost per click): The actual amount you pay the ad network for each click. Depending on the network you have chosen, the CPC is usually determined through a bidding process or a unique formula.
CPI (cost per impression): You pay a fee each time your ad is displayed on a user’s phone.
CPD (cost per download): You pay a Mobile Advertising fee every time a user downloads your application. Sometimes users will download an app but never install it. In this case, you have another CPI option (this one is called cost per install) where you only pay if the app was actually installed on a device.
CPV (cost per view): As you might have guessed, this is mostly applicable to videos where you only pay each time a user watches your video.
CTR (click through rate): This is an important one because it will help you to determine the effectiveness of your PPC campaign. It is a formula that ads the number of ad clicks and divides them by the number of impressions. In other words, it can tell you how many times your advertisement could potentially have been seen by users and compare it to the amount of users who were actually interested in your ad. You want your CTR to be as high as possible because it is an indication that your Mobile Advertisement is working.
CR (conversion rate): You want users to do something after they have clicked on your ad – e.g purchase a product online or download your app. Your CR will tell you how many people did in fact follow through with the desired action.