Advertising programs for publishers

This guide contains information about advertising programs for publishers.

Advertising terms.

Abbreviation Description
above the fold The ad is positioned on a web page so that it is seen immediately by visitors (no scrolling) as soon as the page is loaded.
ad An advertisement.
ad view / ad impression The number of times an ad on a page is viewed by visitors.
Same as impression.
advertiser In the online advertising world an advertiser is a person/company who wants to sell/promote products. This can be done by placing ads on high traffic websites. See publishers.
affiliate You are an affiliate when you assign for an affliate program, to help market products for a company.
contextual advertising The content of the ads displayed on a page is based on the content of the page itself.
click It is a called a click when a visitor interacts with an ad on a page.
click rate Is the number of clickthroughs divided by the number of ad views.
clickthrough It is a called a clickthrough when a visitor interacts with an ad on a page, by clicking on the ad and seeing the landing page.
CPC Cost Per Click

The amout paid by the advertiser to the publisher for every click on the ad. Please note: visitors MUST click on the ads.

When the CPC is $0.50 and 100 visitors has clicked on the ad, the publisher will receive $50 ($0.50 multiplied by 100).
CPM Cost Per Mille

The amount an advertiser pays for one thousand ad impressions.
Please note: visitors does NOT have to click on the ads.

When a publisher is charging $3 per ad on its site and reports 1500 ad impressions, the CPM is $2 ($3 divided by 1.5).

M is the Roman numeral for thousand.
CTR Click Through Rate

Is a way of measuring the success of an online advertising campaign. The CTR is the total number of clicks on an ad divided by the number of ad impressions.

When a page with only 1 ad is viewed by 2,000 users and this ad is clicked 100 times, then the CTR is 5% (100 divided by 2,000).
eCPM effective Cost Per Mille

The cost of every thousand ad impressions.

eCPM is a useful way for publishers to compare revenue across different advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands.

When a publisher earns $400 from 20,000 impressions, then the eCPM is $2 ($400 divided by 200)

For small sites with impressions less then 1000 the eCPM is calculated in another way. Suppose your ad program receives 400 page impressions and $2.00 in total earnings. The eCPM is $5 ($2 divided by 400 times 1000).

Note 1:
The small site generates more revenue per impression compared to the larger site.

Note 2:
M is the Roman numeral for thousand.
EPC Earnings Per Click

It is calculated by dividing the total earnings from clickthroughs by the number of clicks.

When you earn $200 by clickthroughs and the total number of clicks is 1,000, then the EPC is 0.20 ($200 divided by 1,000).
hit A hit is a successful request to the web server from a visitor browser for any type of file, whether an HTML page, image or any other type. A single web page can cause many hits one for each image included on the page, etc.
impression The number of times a single advertisement on a page is viewed by visitors.
Same as ad view / ad impression.
keyword Search terms or phrases that are related to an advertisement.
landing page The page that a visitor sees after clicking an ad.
pageview Represents a visit to a single page in a session.

A page can contain zero or more ads.
PPC Pay Per Click

An advertising model in which advertisers pay for clickthroughs to their website. Ads are served based on keywords or themes.
publisher In the online advertising world a publisher is a person/company with a high traffic website who wants to generate revenue by placing ads from advertisers on the site.
session A session is defined as a series of clicks on your site by an individual visitor during a specific period of time. A session is initiated when the visitor arrives at your site, and it ends when the browser is closed or there is a period of inactivity.

When a visitor opens a browser and vists a web page on site A then this is a session. If the visitor stays on site A clicking on several pages and even clicking on the same page, it is still the same session.

When the vistor is going to site B and returns back to site A then a new session is created.

When the vistor is on site A, closes and starts the browser and vists site A again, then a new session is also created.
SERP A search engine results page, or SERP, is the listing of web pages returned by a search engine in response to a keyword query.
unique visitor When a visitor visits a site it is counted as an unique vistor. Multiple repeat visits are not counted based on the visitor ip address.