Digital marketing terminology 101

Have you ever been hit with a marketing term you didn’t know during a meeting? You don’t want to interrupt and ask, but then you forget to look it up later. Well, say no more. We have a post just for you. This list includes some essential digital marketing terms that you should know, including acronyms that you may have heard at your last marketing meeting.

15 digital marketing terms you need to know

1. A/B testing 

Testing two different versions of an ad or other marketing communication to compare performance

2. Bounce rate 

The number of people who land on a webpage and then leave without clicking on anything

3. Buyer persona

This is everything you need to know about your ideal buyer, based on market research and data. A persona helps marketers define their target audience and salespeople determine the quality of leads

4. Churn 

The percentage of customers who cancel a product or service within a specified period of time

5. Clickthrough rate (CTR) 

The number of “clicks” or actions customers take, divided by the total number of possible actions; can be used to measure how people move through your website or campaign

6. Conversion rate 

Percentage of people who take a desired action, which signals a conversion. You decide what action to measure—it can be filling out a form, registering for an event, signing up for a newsletter, etc

7. Cost per lead (CPL) 

The total cost you pay to acquire a lead. This influences your customer acquisition cost, which is important to track so you know how much money you are spending to gain customers vs. how much they spend on you

8. Cost per click (CPC) 

The amount you paid for each click based on the total cost of the ad and how many clicks it received—used as a metric with Google AdWords and Facebook ads

9. Customer acquisition cost (CAC) 

Total sales and marketing cost to gain a new customer

Calculate for a given period (month/quarter/year):

Add marketing/advertising/sales spend + salaries + commissions + bonuses + overhead.

Divide by the number of new customers in that time period. Learn more

10. Engagement rate 

Measurement of likes, shares, or other interactions a piece of content or social media post receives

11. Inbound marketing 

Marketing activities that draw customers in. This is mostly an online technique that involves making sure you’re easy to find online and guiding customers to the website by producing interesting, helpful content. By creating content aligned with your target audience’s interests, you can attract potential conversions

12. Key performance indicator (KPI) 

Used to evaluate the success of employee or a marketing activity. KPIs let us track progress toward specific goals. Your KPI can be a certain level of website traffic, CAC, or social engagement. It’s important that your KPIs show how your business is doing. Choose the right KPIs for your business

13. Pay per click (PPC) 

A method of paying for online ads where you only pay for each click

14. Return on investment (ROI) 

A measure of the profitability of marketing and sales efforts. If the ROI is negative, it means you’re losing money on that investment. Measuring the ROI on marketing campaigns helps you make sure you’re spending your budget wisely

15. Responsive design 

When a website is responsive, that means it adapts according to how visitors are viewing it. The site recognizes the device and automatically generates a page that is optimized for any screen size. This means you don’t have to make different pages for every device

Do you have a marketing term you want to know more about that isn’t on this list? Email, call (914) 607-7888, or let us know on social media and we’ll make sure to include it in our next post.

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