Digital Marketing Terms You Should Know
Digital marketing is like a world full of undiscovered opportunities, but understanding the key terms is like a compass that helps point you in the right direction. CTR, ROI, CPC - these terms not only define, they open the door to a successful online advertising strategy. Understand the terminology and begin your journey into the depths of the digital marketing world.
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Deadlines
CTR: Click-Through Rate
Indicates the ratio of ad impressions to clicks. The higher it is, the more attractive the ad is to algorithms like Google. This shows that the ad is interesting and relevant to users.
ROI: Return on Investment
Return on investment - a financial indicator that evaluates the profitability of investments, usually calculated by dividing the net investment profit by the initial investment costs.
ROAS: Return on Advertising Spend
A financial indicator that measures the revenue received for each euro spent on advertising. It is calculated by dividing the revenue from the advertising campaign by the costs of the advertising campaign.
CPC: Cost Per Click
Pay only for clicks, not for impressions or time period.
Impressions
Impression. The ad is shown or viewed many times regardless of whether it was clicked or not.
Conversion Rate
This indicator shows the percentage of users who, after interacting with the ad, take the desired action, for example: purchase, subscribe to the newsletter or fill out a form. The conversion rate is calculated by dividing the number of conversions by the total number of users.
CPM: Cost Per Mille
Cost per thousand ad impressions/clicks.
CPV: Cost Per View
An indicator that shows the cost per view (of videos). An advertising pricing model where advertisers pay for each view or interaction with their video ad.
Frequency
Frequency. This is the average number of times a person is exposed to the same ad over a period of time.
Engagement
Engagement. The connection between the user and the content, when an action is performed, for example: clicking "like", sharing (share), writing a comment or simply the time spent viewing an ad.
Ad Placement
Placement of advertisements, place of advertisement. This is the placement of an ad on a digital platform or in a physical space, such as the top of a page, sidebar, or feed.
Reach
Availability. The total number of unique users or audience members who were served an ad during a given time period.
Ad Copy
Ad copy. Text or creative ad content, including headlines, body text, and calls to action.
Geotargeting
A targeted advertising strategy that shows ads to users based on their geographic location, allowing advertisers to reach specific audiences in specific regions or locations.
Keyword Targeting
Targeted selection of keywords. Indexes: This is a form of online advertising targeting where ads are displayed based on keywords or phrases that users are searching for or based on the content they are using.
Ad Extensions
Additional information or features that can be added to text ads to provide more context or encourage interaction, such as website links, call buttons or location information.
A/B Testing
This is a method used to compare two versions of an ad or web page to determine which one performs better. This is often done by testing variations on elements such as headlines, images or calls to action.
Conversion Funnel
Conversion funnel. A marketing concept that refers to the consumer journey from first learning about a product or service to the final purchase. It usually consists of stages such as awareness, interest, consideration and conversion.
Engagement Rate
Level of engagement. Often calculated as a percentage of likes, comments, shares, or other forms of interaction compared to total impressions.
KPI - Key Performance Indicator
Key performance indicator. A measurable value that shows how effectively a company is achieving its core business goals.
SEO (Search Engine Optimization)
Search engine optimization to achieve better positions in search results.
PPC (Pay-Per-Click)
Pay per click. An advertising model where you pay only for actual clicks.
CTA (Call to Action)
Call to action. Buttons or text that encourage users to take an action, such as "Buy Now."
ATC (Add to Cart)
Add to Cart: A metric that measures how many users added products to their shopping cart.
Sessions
Sessions: Unique visits to a website over a given period of time.
Unique Sessions
Unique sessions: The number of visitors who visited your website for the first time during a given period.
Traffic
Traffic: The total number of visitors to the website.
Bounce Rate
Bounce rate: The percentage of visitors who leave a website without moving on to another page.
AOV (Average Order Value)
Average order value. Calculated by dividing the total sales amount by the number of orders.
LTV (Lifetime Value)
Customer value over time. An indicator that shows how much revenue a single customer generates over the entire period of cooperation.
CR (Customer Retention)
Customer retention. A metric that shows how many customers remain loyal to a business after their first purchase.
RFM (Recency, Frequency, Monetary)
A customer analytics model that assesses how recently and frequently customers have purchased and how much money they have spent.
UX (User Experience)
User experience. Evaluating the design and functionality of a website from the user's perspective.
CRM (Customer Relationship Management)
Customer Relationship Management. Tools and strategies for maintaining and improving customer relationships.