Q: What is a web banner ad?
A: A web banner ad can be a single image (.JPG, .PNG or .GIF formats), a Flash movie or a composite of different elements such as graphics, Flash and/or HTML code.
Q: What is a banner impression?
A: Banner impression measures the number of times the banner is displayed, either on a web page or in a separate browser window as a pop-up or pop-under advertisement. Thus, 1,000 impressions mean that the banner has been displayed 1,000 times.
Q: What is CPM?
A: Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1,000 times. Thus, if a banner ad space has a CPM of $10, it means that the cost of displaying a banner space one thousand times on that space is $10.
Q: What is CTR?
A: Click Through Ratio determines the effectiveness of a banner ad in terms of click-thrus. It is a ratio of the number of times the banner was clicked on by the viewer and the number of times the banner was displayed. Thus, if a banner has been displayed 1,000 times and has been clicked 50 times, its CTR is 50:1000 or 1:20. Changing this CTR into a percentage value yields 5% (1/20 * 100); thus, 5% of the impressions have lead to clicks on the banner.
Q: What is CPC?
A: Cost Per Click is the price you pay for one click on your banner. It can easily be calculated using CPM and CTR values.
Q: What is IMU?
A: Interactive Marketing Unit. The Interactive Advertising Bureau (IAB) specifies standard size advertising banner sizes. The IAB refers to banner ads as Interactive Marketing Unit (IMU) Ad Formats and regularly approves new sizes and types (rectangle, pop ups, sky scrapers, etc.). The size of your banner ad is important because the sites you want to advertise on may only accept certain size ads and typically charge more for larger ads.