Adspend

Every type of advertising incurs costs, which are also referred to as "adspend" or "ad spend". The term is composed of the English word "ad" (advertising) and "spend" (expenditure). The term is often mistakenly equated with the advertising budget. The difference is that the advertising budget is the absolute amount of money that is generally available for advertising measures and ad spend represents the exact amount of money that was spent on a specific measure.

An example: An online retailer wants to advertise his products on Google and has an advertising budget of 10,000.00 EUR per month available for this. However, the advertising campaigns only run moderately well and cause costs of 6,000.00 EUR.

Cache

PCs or even mobile devices store temporary data so that websites can be loaded faster. This data is stored on the visitor's device. From time to time it is necessary to empty the cache. This makes sense when there is something new on shops and websites that is not yet stored in the cache. Emptying the cache is usually quite simple via the settings of the browser used (usually in the "Data protection" area).

The cache must also be cleared in the shop itself from time to time so that adjustments are displayed. If this is not a function of the selected (shop) software, you should use an extension for this.

Conversions

In the context of online marketing, conversion usually means the transformation of a visitor to a website, i.e. a prospective customer, into a customer or at least a registered user. In the case of an online shop, the conversion can consist of a visitor to the site placing an order and thus developing from an interested party to a customer.

Conversion rate

The conversion rate calculates the percentage of prospective buyers who actually become buyers when visiting the website. In order to determine the exact ratio in which visitors become buyers, the "unique visitor" is used, in which not all clicks, but each visitor is recorded individually.

The conversion rate is calculated by dividing the number of conversions by the number of total visitors. For example, if you had 50 conversions out of 1,000 visitors, your conversion rate would be 5% because 50 x 100 ÷ 1,000 = 5%.

Conversion tracking

Conversion tracking lets you know how the performance of your ads and listings relates to the success of your business - and which of your ads, listings and keywords contribute most to your success.

Dynamic Repricing

Dynamic repricing is a strategy that continuously adjusts product prices to respond to supply and demand in real time. The price of a product can change in a matter of minutes, with the goal of price optimisation.

Amazon, for example, relies heavily on this strategy. If you look through their website, you will notice that their product prices are updated every 10 minutes. This allows Amazon to offer the best bargains as they can discount products as they become popular or receive good reviews.

Facebook Ads

The ads that are placed within the social network Facebook are called Facebook Ads.

In contrast to Google Ads, the ads are not displayed to the user based on a search query, but on the basis of the user's interests and preferences that he or she has disclosed on Facebook (e.g. favourite music, relationship status, place of residence, etc.) or his or her surfing behaviour on websites that use the Facebook Pixel, thus reducing scattering losses for the advertiser.

Facebook Pixel

The Facebook Pixel is a JavaScript code that is embedded on websites. The pixel links the behaviour of people on the website with Facebook user profiles. It collects data that helps to track conversions, optimise ads, measure the effectiveness of advertising and create target groups. The pixel also tracks conversions across devices.

The Facebook Pixel is necessary to run retargeting and lookalike campaigns.

Google Ads (formerly Google Adwords)

Google Ads is Google's online advertising programme. Through Google Ads, you can create online ads to reach users at the exact moment they show interest in your products or services.

Google Ads accounts are managed online. Therefore, you can create and change campaigns or edit the associated ad texts, settings and budgets at any time.

Google Merchant Center

Google Merchant Center means "Google dealer centre" in German. If a dealer or merchant wants to place his products in Google Shopping Search, he must feed the data for the products into Google's index. This process takes place in the Google Merchant Center.

Google Shopping

Google Shopping is a price comparison portal from Google and, with the so-called Product Listig Ads (PLA), also a component of Google Ads. Operators of an online shop can have their products displayed in Google Search by billing on a click basis on Google Shopping lists and image ads based on a submitted data feed. Prerequisites for participation in Google Shopping are a valid AdWords account and a Merchant Center account.

Google Smart Shopping

Smart Shopping campaigns combine your existing product feed and assets using Google machine learning to deliver different ads across ad networks. Our systems then access your product feed and test different combinations of the image and text you provide. The most relevant ads are then delivered across different Google ad networks.

Instagram Ads

Instagram Ads are posts or stories that a business pays for to be promoted in users' Instagram feeds. They can look like normal Instagram posts, but are always identified by the term "Sponsored". They can also contain a call-to-action button to increase traffic to your website or the number of conversions.

Page Speed

The term "page speed" describes the speed of a website in terms of its loading time. The loading time measures the time between the submission and the subsequent delivery or usability of the requested content.

The page speed of websites is, among other things, an important indicator of the quality of the user experience, which in turn influences the positioning of websites within search engines. For many years, the loading time was also said to have a direct effect on Google's ranking. In 2018, the search engine leader officially declared it a ranking factor.

If Google ranks a website due to insufficient page speed, this can have a direct influence on the performance of your campaigns. You can test the page speed of your website free of charge here: https://developers.google.com/speed/pagespeed/insights/?hl=de

Pricing models for online advertising

Advertising is paid differently on the Internet than offline. You should be familiar with the following terms:

CPC - Cost per Click (CPC)

PPC - payment per click (Pay per Click)

CPA - Cost per conversion (Cost-per-acquisition)

CPM - Cost per 1000 contacts (Cost Per Mille)

Product data feed

The product data feed refers to a data record that contains all information about an item, such as product name and description, price and link in a specific form. This data is used for various online platforms and product search engines, such as Google Shopping, on which products are offered for sale on the web.

Remarketing

Remarketing (or retargeting) is used to target visitors or customers of one's own website on other sites. The ads can be adapted accordingly and, for example, advertise offers that the visitor has viewed but not purchased. This makes remarketing one of the types of advertisements that are displayed based on the user's interests, not on the content of the page in question.

Retargeting campaign

Remarketing is also possible within the framework of Facebook Advertising. In the Facebook cosmos, however, the advertising strategy is called retargeting. Retargeting is a central strategy to remind buyers of their original interests and to lure them back to your online shop to complete a purchase.

Through precise social media targeting based on profile data and interactions within the social network, corresponding retargeting campaigns can be very accurately targeted.

ROAS - Return on Advertising Spend (Adspend)

ROAS stands for Return on Advertising Spend and is a key figure in online marketing. ROAS (Return on Advertising Spend) measures the profitability of advertising expenditure. To do this, one looks at the expenditure for the advertising measures and the income generated by them.

There is a simple formula for calculating ROAS:

Revenue figures / Expenditure = ROAS

A profit margin is not considered in the calculation, which is the main difference to ROI (Return on Investment).

A company spends 1000 € per month on Facebook marketing and thus achieves a turnover of 5000 €. Using the above formula, the result is: 5000 / 1000 = 5. This result can be interpreted as follows: For every € invested in Facebook marketing, a profit of 5 € is achieved.

ROI - Return on investment

The return on investment is the percentage relation between advertising costs and the profit achieved. This allows the financial success of advertising campaigns to be measured precisely. The prerequisite is, of course, that the necessary data is tracked, i.e. the conversion rates.

The ROI is calculated as follows:

Profit/turnover x turnover/total capital x 100 %.

SEA - Search Engine Advertising

SEA is part of online marketing and, together with SEO (Search Engine Optimisation), forms part of search engine marketing. This online marketing discipline is about increasing paid visibility in the search engine, for example in the Google ranking.

To do this, advertising is booked with search engine providers such as Google (for whom this advertising is the main source of income). This advertising then appears in a clearly visible position in the SERP (Search Engine Result Page).

SEO - Search Engine Optimisation

SEO stands for "Search Engine Optimisation". This online marketing discipline is about increasing the unpaid (organic) visibility in the search engine, for example in the Google ranking.

SSL

If you want to buy something online, you have to enter personal data for payment. Secure Sockets Layer (SSL) is a technology that is used to establish an encrypted link between the website and the browser. With websites that have SSL, personal data can be

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