Conversion Funnel
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Conversion Funnel
In e-commerce, the conversion funnel is the journey a consumer takes through an Internet advertising or search system, navigating an e-commerce website, and finally making a purchase. The consumer is seen as being "converted" from a visitor to the site to a buyer. A funnel describes the progressive reduction in the number of users at each stage of the process. Advertising efforts can be aimed at "upper funnel", "middle funnel", or "lower funnel" potential customers. Typically a large number of customers search for a product/service or register as page view on a referring page which is linked to the e-commerce site by a banner ad, ad network or conventional link. Only a small proportion of those seeing the advertisement or link actually click the link. The metric used to describe this ratio is the click-through rate (CTR) and represents the top level of the funnel. Typical banner and advertising click-through rates are 0.02% in late 2010 and have decreased over the past three years ...
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E-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry, and is the largest sector of the electronics industry. Defining e-commerce The term was coined and first employed by Dr. Robert Jacobson, Principal Consultant to the California State Assembly's Utilities & Commerce Committee, in the title and text of California's Electronic Commerce Act, carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and enacted in 1984. E-commerce typically uses the web for at least a part of a transaction's life cycle although it may also use other techno ...
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Funnel
A funnel is a tube or pipe that is wide at the top and narrow at the bottom, used for guiding liquid or powder into a small opening. Funnels are usually made of stainless steel, aluminium, glass, or plastic. The material used in its construction should be sturdy enough to withstand the weight of the substance being transferred, and it should not react with the substance. For this reason, stainless steel or glass are useful in transferring diesel, while plastic funnels are useful in the kitchen. Sometimes disposable paper funnels are used in cases where it would be difficult to adequately clean the funnel afterwards (for example, in adding motor oil into a car). Dropper funnels, also called dropping funnels or tap funnels, have a tap to allow the controlled release of a liquid. A flat funnel, made of polypropylene, utilises living hinges and flexible walls to fold flat. The term "funnel" may refer to the chimney or smokestack on a steam locomotive and commonly refers to the ...
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Page View
In web analytics and website management, a pageview or page view, abbreviated in business to PV and occasionally called page impression, is a request to load a single HTML file ( web page) of an Internet site. On the World Wide Web, a page request would result from a web surfer clicking on a link on another page pointing to the page in question. In contrast, a hit refers to a request for any file from a web server. Therefore, there may be many hits per page view since an HTML page can contain multiple files such as images, videos, JavaScripts, cascading style sheets (CSS), etc. On balance, page views refer to a number of pages viewed or clicked on the site during the given time. Page views may be counted as part of web analytics. For the owner of the site, this information can be useful to see if any change in the "page" (such as the information or the way it is presented) results in more visits. If there are any advertisements on the page, the publishers would also be interest ...
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Referring Page
In HTTP, "" (a misspelling of Referrer) is an optional HTTP header field that identifies the address of the web page (i.e., the URI or IRI), from which the resource has been requested. By checking the referrer, the server providing the new web page can see where the request originated. In the most common situation, this means that when a user clicks a hyperlink in a web browser, causing the browser to send a request to the server holding the destination web page, the request may include the field, which indicates the last page the user was on (the one where they clicked the link). Web sites and web servers log the content of the received field to identify the web page from which the user followed a link, for promotional or statistical purposes. This entails a loss of privacy for the user and may introduce a security risk. To mitigate security risks, browsers have been steadily reducing the amount of information sent in Referer. As of March 2021, by default Chrome, Chrom ...
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Hyperlink
In computing, a hyperlink, or simply a link, is a digital reference to data that the user can follow or be guided by clicking or tapping. A hyperlink points to a whole document or to a specific element within a document. Hypertext is text with hyperlinks. The text that is linked from is known as anchor text. A software system that is used for viewing and creating hypertext is a ''hypertext system'', and to create a hyperlink is ''to hyperlink'' (or simply ''to link''). A user following hyperlinks is said to ''navigate'' or ''browse'' the hypertext. The document containing a hyperlink is known as its source document. For example, in an online reference work such as Wikipedia or Google, many words and terms in the text are hyperlinked to definitions of those terms. Hyperlinks are often used to implement reference mechanisms such as tables of contents, footnotes, bibliographies, indexes, letters, and glossaries. In some hypertext, hyperlinks can be bidirectional: they can be ...
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Banner Ad
A web banner or banner ad is a form of advertising on the World Wide Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. In many cases, banners are delivered by a central ad server. This payback system is often how the content provider is able to pay for the Internet access to supply the content in the first place. Usually though, advertisers use ad networks to serve their advertisements, resulting in a revshare system and higher quality ad placement. Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, a fact first documented on HotWired in 1996 by researchers Rex Briggs and Nigel Hollis. Web banners differ in that the results for advertisement campaigns may be ...
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Ad Network
An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with advertiser's demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives. Overview The advertising network market is a large and growing market, with Internet advertising revenues expected to grow from $135.42 bn in ...
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Click-through Rate
Click-through rate (CTR) is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website, as well as the effectiveness of email campaigns. American Marketing Association Dictionary. . Retrieved 2012-11-02. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoinCommon Language in Marketing Project Click-through rates for ad campaigns vary tremendously. The first online display ad, shown for AT&T on the website HotWired in 1994, had a 44% click-through rate. With time, the overall rate of user's clicks on webpage banner ads has decreased. Purpose The purpose of click-through rates is to measure the ratio of clicks to impressions of an online ad or email marketing campaign. Generally, the higher the CTR, the more effective the marketing campaign has been at bringing people ...
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Ad Text Optimization
Ad text optimization (ATO) is the process of improving the performance of a text Pay Per Click (PPC) Advertisement on search engines by improving its Click Through Rate (CTR) performance both in terms of volume and quality of response, that is “more buyers, less browsers”. ATO is an element of Search engine optimization, where the subject is discussed in greater detail. According to Search Engine Journal, “AdWords text ads are small and in some ways unassuming – when you think about testing landing pages it’s obvious that there are elements that could make a big impact, but it’s sometimes less intuitive that ad text tests can and often do have an equally big impact on results.” Work method PPC Ads are triggered to appear on search engine pages when Users search with keywords which match those selected by the PPC Advertiser. When PPC Ads are clicked on they take the User through to a designated page on the advertiser’s website and a fee is paid to the search engi ...
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Conversion Rate
In electronic commerce, conversion marketing is marketing with the intention of increasing ''conversions—''that is, site visitors who are paying customers. Measures Conversion marketing attempts to solve low online conversions through optimized customer service, which requires a complex combination of personalized customer experience management, web analytics, and the use of customer feedback to contribute to process flow improvement and site design. By focusing on improving site flow, online customer service channels, and online experience conversion marketing is commonly viewed as a long-term investment rather than a quick fix . Increased site traffic over the past 10 years has done little to increase overall conversion rates, so conversion marketing focuses not on driving additional traffic but converting existing traffic. It requires proactive engagement with consumers using real time analytics to determine if visitors are confused and show signs of abandoning the site ...
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Purchase Funnel
The purchase funnel, or purchasing funnel, is a consumer-focused marketing model that illustrates the theoretical customer journey toward the purchase of a good or service. In 1898, E. St. Elmo Lewis developed a model that mapped a theoretical customer journey from the moment a brand or product attracted consumer attention to the point of action or purchase. St. Elmo Lewis' idea is often referred to as the AIDA-model, an acronym that stands for Awareness, Interest, Desire, and Action. This staged process is summarized below: * Awareness – When a prospective customer becomes aware that a seller offer a product, solution, or service that will meet their needs, they are in the awareness stage. This can happen through advertising, word of mouth, prospect research, or any of several other channels. After becoming aware, the prospect will begin to consider how they can find an appropriate solution to their problem. * Interest — When a prospect expresses interest in a service, they ...
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