In the world of digital marketing, you often encounter abbreviations and terms. Understanding these marketing words isn’t just about sounding impressive (yes it is); it helps marketers communicate faster (and look cooler) and are essentially some key indicators/tools in digital marketing.
Advertising Marketing Terms
CPC (Cost Per Click) & PPC (Pay Per Click):
Think of these as the costs when someone clicks on your ad. You pay for every click.
Formula: Total ad cost ÷ Clicks
CPM (Cost Per Mille):
This is what you pay for every thousand ad impressions. A Mille is a thousand.
Formula: (Total cost ÷ Total impressions) × 1000
CPA (Cost Per Action):
This is the cost when someone takes action because of your ad (a conversion), like buying a product or filling out a form.
Formula: Total cost ÷ conversions
ROI (Return on Investment):
ROI helps you see if your marketing campaign is profitable. It’s the gain you make after subtracting all your costs.
Some costs are tricky to measure though, like the tools used, time spent, salaries paid, and tracking efforts.
Formula: [(Total revenue - Total cost) ÷ Total cost] × 100%
ROAS (Return on Advertising Spend):
ROAS is like ROI but focused just on your ad-associated costs and revenue.
Formula: [(Revenue from ads ÷ Advertising cost) × 100%]
Digital Marketing Terms
Landing Page:
A landing page serves as a lead generation tool meticulously designed to pique user interest and provide valuable information to potential customers. It encourages users to undertake specific actions, such as completing forms, subscribing to newsletters, or making purchases.
CTR (Click-Through Rate):
This metric represents the ratio between “clicks” and “impressions” and is influenced by factors such as visual design, content appeal, audience interests, and needs.
Formula: (Clicks ÷ Impressions) × 100%
A/B Test:
Think of this as a marketing experiment. You try out different versions of things (like ad text, images, and layouts) to see which one deliver better result. The goal is to enhance user experience and conversion rates.
CRM (Customer Relationship Management):
CRM helps businesses organize customer info like purchasing history, preferences, behaviors, and what they’ve bought. The goal is to build customer loyalty and satisfaction and foster long-term relationships.
CTA (Call to Action):
The primary aim is to captivate attention and direct the audience to take specific actions, such as click links, fill out forms, or make purchases.
CMS (Content Management System):
It’s a technology or software used to create, edit, manage, and publish all your digital contents, from blog posts to videos. It helps you keep everything organized online, especially efficient if you have multiple sites and assets.
SEO (Search Engine Optimization):
A series of techniques and processes aimed at enhancing webpage rankings on search engines like Google, Bing, and Yahoo. This leads to increased visibility and click-through traffic.
SEM (Search Engine Marketing):
SEM employs search engine and advertising to promote products or services, encompassing both advertising and search engine optimization. SEM aims to augment website visibility, click-through rates, website traffic, and revenue by strategically placing ads on top or in between organically ranked search results.
Conclusion
So, there you have it – a simplified guide to marketing terms that will help you navigate digital marketing and sound like a pro.