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What is a web banner?
A web banner can be a single image (.gif or .gif), a flash movie or a composite of different elements such as graphics, flash and or HTML code.
What is a banner impression?
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, 1000 impressions mean that the banner has been displayed 1000 times.
What is CPM?
Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1000 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.
What is CTR?
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 1000 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.
What is CPC?
Cost Per Click is the price you pay for one click on your banner. It can easily be calculated using CPM and CTR values.