There’s a lot of jargon in the marketing industry. Understanding the terminology can help you navigate the world of Youtube advertising more effectively.
Affiliate
A person or organization that does affiliate marketing on behalf of another company.
Affiliate marketing
A type of direct response advertising where another individual or company raises awareness about your product/service and drives traffic to your site. The party doing the advertising, known as the affiliate, is paid a commission for every sale or conversion they’re able to drive.
Brand Awareness
Refers to how well recognized and known a company or product is. Advertising that is intended to raise brand awareness is less focused on driving immediate sales and more focused on making the name, logo, products, and value proposition of a company more widely known.
Commission
The amount of money a creator or salesperson receives when they sell something on behalf of a company. For example, if you’re an affiliate for a shoe company that pays a 15% commission on sales and you’re able to drive a $100 sale through your content, you will earn a $15 commission.
Conversion
When someone does the action that a business is trying to drive. This can include making a purchase, filling out a form, dialing a phone number, signing up for a newsletter, and more.
CPM
An abbreviation for Cost Per Mille (thousand). CPM is a standard measurement advertisers use to understand how much it costs to get 1000 impressions on an ad.
Demonetized
Platforms that creators use to earn an income, such as Youtube or TikTok, may lose the privilege of running ads if they create certain types of content or violate the platform’s terms of service.
Direct Response
A type of advertising that is intended to make the viewer take action immediately by purchasing a product, signing up for a newsletter, or any other conversion.
Frequency
A measure of how many times, on average, a person sees any given ad. It is calculated by dividing the number of impressions by the reach. For example, if an ad is viewed 1000 times total by a group of 250 people, the frequency is 4.
Host-read
An ad where the video host tells the viewer about a particular product or service, often thanking them as a sponsor.
Impression
A single impression refers to 1 person seeing an ad 1 time. Each time a person views an ad it counts as an impression, meaning you can have more impressions than individual people viewing an ad (reach).
Monetize
To generate money from something. For example, you can have a Youtube channel just for fun and not earn any money from it, or you can monetize it by allowing ads on your videos, taking influencer deals, and more.
Reach
The number of unique people that see an advertisement
RPM
An abbreviation for Rate Per Mille (thousand). This is a standard measurement that media creators use to understand how much revenue they generate per 1000 impressions on an ad.
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