You come across innumerable digital marketing terms in your office, meetings, and over the internet. Some of them are Pay Per Click (PPC), Cost Per Click (CPC), Click Through Rate (CTR), Key Performance Indicator (KPI), and the list goes on.
Digital marketing in today’s era stands on these terminologies. Every market-related person should have knowledge of the mechanism going behind these marketing jargons.
If not all, you must know at least some of the marketing words to understand where they produce the best results.
Mayabytes brings the top 10 marketing terms that everyone should know in this age of online marketing.
Pay Per Click (PPC)
Pay per click (PPC) refers to the paid ad campaigns that are run on Google. PPC is similar to SEO but its results are instant as it is a paid campaign.
Are you aware of SEO? Well here’s everything you need to know about SEO.
In this online marketing model, you pay to Google each time your ad is clicked by a visitor. It is a relatively effective form of digital marketing.
If you have a budget to spend on online marketing, then you must learn about this marketing term. It will rank you on Google within no time!
Cost Per Click (CPC)
Cost Per Click (CPC) is the method of measuring the cost that an advertiser pays in his PPC campaign. You may consider it similar to PPC.
CPC tells you how much you have been charged per click by Google on your ad campaign.
Click Through Rate (CTR)
The Click Through Rate (CTR) shows you that, out of the total views, how many times the users have clicked on your ad.
CTR is an important marketing terminology that is frequently used in online marketing to gauge the performance of an ad campaign.
It is calculated through the formula:
CTR = Total number of clicks Number of times it was shown
For example: if your ad was shown 10,000 times, and the number of clicks it received was 500, then your CTR would be 0.05.
If you convert it into percentage, your CTR would be 5%
Cost Per Acquisition (CPA)
Cost Per Acquisition (CPA) is another useful marketing term which lets you calculate the cost incurred on each customer.
CPA helps you in finding out how much did it actually cost you to lock a customer through the ad campaign.
This is calculated by dividing the total cost that you incurred by the number of total conversions that you received.
CPA = Total cost Number of conversions
CPA guides you in setting an effective budget for your online marketing campaign. If your cost appears too high, then you should rethink on the campaign and the budget.
Cost Per Impression (CPI)
The term Impression means the number of times your ad is displayed to the users.
Cost Per Impression (CPI) tells you how much did you pay for each time your ad was displayed to the potential customers.
The marketing word ‘reach’ is similar to impressions. Reach means the total number of people who saw the ad, while impressions are the number of times it was displayed to the users.
Leads/Lead generation
‘Leads’ is one of the most spoken marketing terminologies.
When a potential customer clicks on your ad or enquires about your product/service, this is known as a lead. Your success depends on how effectively you generate leads for your business
Once a lead is generated, you have to make efforts to convert it into your sales.
All the competition in the world of online marketing is about lead generation, the more leads you’re able to generate, the more market share you’ll be able to secure.
Call to Action (CTA)
You must have heard this marketing term in your office or while dealing with the web designer or developer.
Call to Action (CTA) is generally a button somewhere on your web page that gains your visitors’ attention and urges them to take an action that you want them to take.
Some of the basic CTA buttons are;
- Sign Up button
- Add to Favorites button
- Add to Cart button
- Send a Message button
An effective CTA is visible, attractive and convenient for the users to grab their attention as soon as they land on your website.
Bounce Rate
Bounce Rate is the percentage of your users who landed on your website and went back after viewing just a page or just the homepage.
It can also be considered as the time that a user spent on your site.
It is an important digital marketing term that helps you in making your web design and development better.
High bounce rate means that your site is off-putting or boring. You need to improve your design and development to make your visitors stay for a longer time.
A/B Split Testing
A/B Split Testing refers to running 2 or 3 similar ads at the same time and for the same audience to see which of the ads is performing the best.
Split testing allows you to target your audience in a better way and shows you what your audience actually wants.
When your campaign is finished, you’ll have the result for which ad proved the most yielding among all.
Remarketing
Have you ever noticed that the product you have just viewed on a website pops up on your Facebook newsfeed?
For example, if you’re viewing a mobile phone on an e-commerce store, that mobile phone re-appears as an ad while you’re on another web page.
How does it happen?
Well, this is what remarketing is!
This is an online marketing strategy to bring the customer back to your website who did not purchase the product he was viewing.
This marketing terminology refers to reminding the potential customers of the product that they just viewed but did not buy.
So, these are the 10 marketing terms everyone should know. If you’re a marketing-related person or a business owner, these terminologies will greatly assist you in understanding what the discussion is all about.
