Ad Space: The space on a web page that is reserved exclusively for banner advertisements.

Banner: The traditional type of display ad unit that typically runs along the top, bottom, or side of a web page. Four recommended banner sizes are 300×250, 160×600, 728×90 and 300×600.

CPM: Refers to Cost per Thousand Impressions (= number of times ads are served to a customer).

CPA: Refers to Cost per Acquisition. This metric helps you understand the total cost in ads it has taken you to have a customer make a purchase on your store.

CPC: Cost per Click. This metric helps you understand the total cost in ads it has taken you to have a customer click on one of your banners.

CTR: Click-Through Rate is a metric calculated by taking the number of clicks on an ad and then dividing it by the number of times the ad is shown, or the number of impressions. Low CTR doesn’t necessarily mean your ads are performing bad. Your customers may prefer to organically come back to your store and make a purchase instead of clicking on your banner.

Click-Through URL: The URL that users are sent to when they click on an ad. Normally this will be your store’s web address.

Conversion: One of the most important metrics you will want to pay attention to is conversion. A conversion measures the number of completed transactions as a result of your advertising campaign.

Creative: The images and copy used in an individual ad.

Schedule: Start and end dates of your ad campaign.

Geography: The serving of ads to a particular geographical area or population.

Impression: The rendering of a single creative to a web site user. An individual page can generate more than one impression if there is more than one ad space on the page.

Retargeting: The term used to describe serving ads to people who have indicated an interest in your store. These people will see your ads as they visit websites, mobile apps and even Facebook!

Shopping Cart Abandonment: These are people who have not only visited your store but placed items in their shopping cart. Since they have left your store before making a purchase, you will have an easier time converting them to make a purchase.