These days, there’s a lot of digital marketing terms moving about, and keeping up with it all can be difficult. Here’s a rundown of 22 digital marketing terms that every marketer should be familiar with. It might be difficult to keep up with all of the marketing jargon these days, from SEM to CTR to CAC. Of course, not understanding these phrases might make it tough to keep up with marketing discussions.
A digital marketer should be able to comprehend both the “what” and “why” of each of these concepts. The “what” is frequently obvious, such as the meaning of an acronym. The “why” is a more sophisticated and crucial examination of why a marketer should be concerned with a certain term and what it signifies for company.
You’ve come to the right place if you’ve been seeking for a way to boost your marketing vocabulary or a marketing glossary. We’ll go over the what and why of our list of 22 marketing phrases that every digital marketer should be familiar with.
1. Digital marketing term: Conversion Rate
The percentage of consumers (or potential customers) who execute a given action is known as the conversion rate. It might be anything from opening an email to signing up for a demo to making a purchase. Conversion rate is an important marketing indicator because many marketing efforts focus on persuading customers to take the next step in the sales funnel.
It’s critical for a marketer to be able to contextualise conversion rate statistics. The conversion rate varies greatly depending on the marketing medium and sector. For example, 1000 people visit a website, and 100 of them make a purchase. The conversion rate stands at 10%.
2. Digital marketing term: Push Marketing
Push marketing is a type of marketing that involves sending a specific message to a group of potential or existing clients.
Targeted email campaigns, television and radio advertisements, and line-of-sight marketing using digital signage at brick-and-mortar places are all examples of push marketing.
3. Digital marketing term: Pull Marketing
Pull marketing, also known as inbound marketing, is a type of marketing that aims to “pull” or attract sales prospects to your website, brand, and products or services. SEO (search engine optimization) and social media marketing are examples of pull marketing.
4. Digital marketing term: Customer Acquisition
Customer acquisition and retention are at the heart of digital marketing. All of the sales and marketing actions that go into acquiring a customer are referred to as customer acquisition.
5. Digital marketing term: Customer Acquisition Cost (CAC)
The costs incurred prior to a sale are referred to as customer acquisition costs. It is an important metric in marketing to calculate the customer’s true value. Client acquisition cost is used by marketers to determine the percentage of resources that can be spent profitably on a customer.
6. Digital marketing term: Customer Lifetime Value (CLV)
Client lifetime value (CLV) indicates how much money a customer brings in to your company. Customer lifetime value is another term for CLV (LVC). CLV can be calculated in a variety of methods, but here’s one of the simplest:
Customer lifetime value = average purchase amount x frequency of purchases x average purchase amount
7. Digital marketing term: Search Engine Optimization (SEO)
The term “search engine optimization” is an acronym for “search engine optimization.” SEO is a marketing approach that aims to improve search results while also raising brand recognition. Content marketing, link acquisition, and technical and code enhancement are all methods used in SEO marketing. SEO is organic marketing, which means it does not use paid advertising channels like PPC.
8. Digital marketing term: Search Engine Marketing (SEM)
SEM (search engine marketing) is the process of employing SEO and paid adverts to increase the quantity and quality of traffic to your website. Simply said, SEO Plus paid search results equals SEM.
9. Digital marketing term: Search Engine Results Page (SERP)
When a user types a phrase into a search engine, the search engine results page (SERP) is the page of results that appears. In general, the higher your SERP rank for a given term, the more probable it is that a person will click on your result.
10. Digital marketing term: Impression
An impression occurs when a piece of web material is displayed. In the field of sponsored web ads, the word is frequently used. Clickthrough rate (CTR) is computed using clicks and impressions, for example.
11. Digital marketing term: Clickthrough Rate (CTR)
The clickthrough rate (CTR) is the proportion of impressions to clicks received by a campaign. A higher CTR indicates that campaigns are resonating with viewers more successfully. CTR is calculated using the following formula:
Clickthrough rate = (clicks on a campaign ÷ total campaign impressions) × 100
12. Digital marketing term: Cost Per Mille (CPM)
CPM stands for cost per mille and is one of the few marketing terms that uses Latin. CPM stands for cost per thousand impressions and is derived from the Latin word mille. CPM is frequently used to determine the cost of a paid ad campaign.
13. Digital marketing term: Cost Per Click (CPC)
The cost of each click in a paid search campaign is referred to as cost per click (CPC) in marketing language. You pay for clicks rather than impressions with the CPC approach. On pay-per-click systems like Google Ads, CPC is very popular.
14. Digital marketing term: Customer Relationship Management (CRM)
Customer relationship management (CRM) is the process of establishing, maintaining, and improving a company’s customer connection.
CRM software is a crucial part of efficient CRM for many digital marketers since the correct software may enable scalable contact management, customer segmentation, marketing automation, and sales analytics.
15. Digital marketing term: Content Management System (CMS)
A content management system (CMS) is a type of software that makes building a website and distributing information easier. Content management software, such as the widely used WordPress platform, can aid with everything from content management to SEO and user administration.
16. Digital marketing term: Marketing Analytics
Digital marketing and marketing analytics go hand in hand. Marketing analytics, often known as digital marketing analytics, is a data-driven technique to determining the efficacy of marketing campaigns. Marketing analytics can provide insights that make future efforts more effective using data collected from social media, web forms, and other sources.
17. Digital marketing term: Bounce Rate
Bounce rate is a phrase used in web traffic analysis in digital marketing. Bounce rate is a term used by marketers to describe the percentage of visitors who leave a website without interacting with it or reading further pages on the site. The time a visitor spends on the site is used to compute the bounce rate. The bounce rate gives advertisers information about the site’s efficacy. A high bounce rate indicates that the site’s loading time is slow or that the visitors are not engaged.
18. Digital marketing term: Return on Investment (ROI)
The percentage return on an investment is known as return on investment (ROI). While there are numerous marketing-specific indications to examine as you move through the marketing process, don’t overlook the fundamentals, such as ROI.
Of course, in the realm of marketing, the difficult part of ROI is attributing sales to a specific marketing effort. How can you tell what prompted the buyer to buy something? However, in every scenario, there is no one-size-fits-all solution to this problem.
19. Digital marketing term: A/B Testing
A/B testing is a simple method of comparing web page changes to text from an existing web page. The control is the present text, which is compared to the variation, which is the modified copy. The ideal situation is to compare copy to see which is more effective. Split testing and bucket testing are other terms for A/B testing. The controlled testing or experiment is a randomised experiment with two variables, the control and the variation. To establish which language performs better, statistical analysis is employed, which involves measuring the impact of changes on metrics to discover good or negative outcomes.
20. Digital marketing term: Customer Segmentation
Customer segmentation, also known as market segmentation, is the classification and segmentation of customers based on several factors. Customer segmentation is used to divide customers into groups based on their demands, interests, and budget, as well as their potential value to your company.
You may deliver more focused and relevant information that your consumers are more likely to find intriguing by appropriately segmenting your customer contact information. For example, generating an efficient email blast requires adequate client segmentation. Your conversion rates and total marketing ROI may also improve.
21. Digital marketing term: Digital Marketing Automation
Existing software meant to automate marketing actions is referred to as digital marketing automation. Marketers frequently automate time-consuming processes such as email campaigns, social network posts, and other website actions. Business tasks are more manageable and time-consuming with marketing automation. Marketing automation enables internet firms to purchase and sell, as well as convert clients.
22. Digital marketing term: Landing Page Optimization
The technique of upgrading components on a website to boost conversions is known as landing page optimization. Landing pages are an integral part of online marketing. The goal of the landing page is to deliver information while also generating sales or capturing leads. Landing pages are frequently used by marketers in paid marketing efforts.
Now You Know
Congratulations on making it through this extensive collection of the most important marketing terminology and definitions. Did you pick up any marketing lingo? We recognise that some of these terms may be perplexing but understanding them will enable you to track your ROI, produce better adverts, and identify when something goes wrong with your campaign (and how to fix it). You’re ready to take the next step in building your business if you understand these marketing words.