Advertising & Partners

I want to learn about the basic advertising terms.

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1) Basic Terms

¹Impression: The number of times an advertisement is displayed.
Click: The number of times users click on displayed advertisements.
Conversion: When a user who clicked on an ad takes a specific action (notification subscription/funding/pre-order) that is the goal of the ad.
Ad Slot: The number of ads sold in a single advertising product. If it's indicated as "6 slots sold per day," it means up to 6 projects can run advertisements in a single day.

2) Billing-Related Terms

CPT (Cost Per Time): An advertisement that runs on a period-based basis. For a CPT one-day product, it means the ad is displayed throughout the day. (Ad runs from 0:00 to 23:59)
CPA (Cost Per Action): The advertising cost incurred for a user to take a specific action (notification subscription/funding/pre-order) once, also called cost per conversion.
→ If the CPA for an ad targeting notification subscriptions is 3,000 won, it means you spent 3,000 won in advertising cost to acquire one notification subscriber. (Ad cost/Number of conversions)
CPM (Cost Per Mille): The advertising cost required for an ad to be displayed 1,000 times.

2) Terms used to examine advertising efficiency

CTR (Click Through Rate) : The ratio of clicks to the number of times an ad is displayed, also called click-through rate.
→ If an ad was displayed 10,000 times and received 300 clicks, the CTR is 3%. (Number of clicks/Number of impressions*100)
CVR/Conversion Rate: The ratio of conversions relative to the number of ad clicks.
→ If there were 300 clicks and 60 conversions, the CVR is 20%. (Number of conversions/Number of clicks*100)
ROAS (Return On Ads Spending): Advertising return rate, showing "how much profit was earned" for the amount of advertising cost spent.
→ If you spent 1 million won in advertising cost and generated 4.7 million won in sales, the ROAS is 470%. (Sales from the ad cost/Ad cost*100)

¹ For push advertisements, advertisement messages are sent according to the guaranteed number of message sends (population).

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