Digital marketing terms are used every day within a marketing department. It describes the use of various digital channels and strategies.
As a client interested in digital marketing services, you need to have a basic understanding of these terms.
In this post, we’re going to share the top 10 digital marketing terms used every day!
Why Do You Need To Understand These Terms?
As a client, it is important to understand the basic jargon of the service you are seeking. Understanding the basic jargon will help you:
- Understand what you’re quoted for.
- Fill in briefs to the best of your ability.
- Understand and analyse monthly reports.
- Have a basic understanding of the strategies used to achieve your goals.
Top 10 Digital Marketing Terms You Need To Know!
Below are the top 10 digital marketing terms used every day. We’ll explain them in simple terms to help you get a better understanding.
1. CTR (Click Through Rate)
CTR refers to the amount of times an ad, link, contact form, etc., is clicked compared to the number of times it has been viewed. Paid marketing uses CTR percentages to measure the success of ad campaigns.
To work this out, use the following formula = clicks ÷ impressions x 100 = CTR.
2. Conversion Rate
The conversion rate is probably the most asked-about statistic, and for good reason.
It measures the percentage of website visitors who completed a desired goal, whether that’s filling out a form or making a purchase. This helps determine the success of a campaign and where improvements can be made.
In other words, it is the amount of leads that potentially turns into sales.
To calculate the conversion rate, divide the number of conversions by the total interactions. For instance, if you had 20 conversions out of 1,000 interactions, your conversion rate would be 2% (20 ÷ 1,000 = 0.02 or 2%).
3. CPA ( Cost per Acquisition)
CPA is a financial metric that measures the cost of acquiring a new customer. It takes into account all costs associated with marketing and sales efforts, such as ad spend, salaries, overhead, etc.
To calculate CPA, divide the total cost of acquisition by the number of customers acquired during that time period.
This is an excellent metric to track for determining the efficiency and profitability of a marketing campaign.
4. SEO (Search Engine Optimisation)
SEO is the process of optimising your website and content to rank higher in search engine results pages.
It involves both technical and creative elements, such as keyword research, metadata optimisation, and backlink building, to improve visibility and drive organic traffic.
Understanding SEO can greatly benefit your digital marketing efforts and help your brand reach a wider audience.
5. PPC (Pay Per Click)
PPC advertising allows advertisers to bid on keywords or phrases relevant to their target audience. They only pay when someone clicks on their ad, hence the name “pay per click”.
This form of advertising can be highly targeted and effective if done correctly, as it allows you to reach potential customers at the moment they are actively searching for a product or service.
However, it is important to continuously monitor and optimise your campaigns to ensure a positive return on investment (ROI) and avoid wasting money on irrelevant clicks.
6. ROI (Return on Investment)
As a client investing in marketing services, you want to know if you are getting a positive return on your investment.
ROI measures the profit or loss generated from your marketing efforts relative to the amount of money invested.
It is an important metric for evaluating the success and effectiveness of your marketing campaigns and making informed decisions for future investments.
7. CTA (Call-to-Action)
CTAs are placed in content such as text, banners, forms, images, emails, and other marketing materials to encourage users to take specific action.
The actions can include anything from buying a product to signing up for a newsletter to filling out a form.
CTAs should be clear, direct and compelling to entice users to take action and convert them into customers.
8. A/B Testing
A/B testing (also known as split testing) compares two versions of a webpage or marketing campaign to determine which one performs better.
This can involve different elements such as design, copy, CTAs, and images to see which combination leads to higher conversions.
For instance, if your social media marketing services involve creating ads, A/B testing can help them determine which ad has a higher click-through rate and better ROI. They would then use the better-performing ad for future campaigns.
9. Sales Funnel
The sales funnel is a crucial concept in marketing that illustrates the journey a potential customer takes from the initial awareness of a product or service to the final purchase decision.
This process is typically divided into three stages: ToFu, MoFu, and BoFu.
- ToFu / Top of Funnel: This is the first stage of the sales funnel, where the target audience still searches for information. They need to be convinced that the brand is trustworthy and provides quality products or services.
- MoFu / Middle of Funnel: In this stage, potential customers have shown interest and are considering purchasing the product or service. Marketers need to provide more detailed information about the brand and its offerings to help them make an informed decision.
- BoFu / Bottom of Funnel: This is the final stage where potential customers are ready to make a purchase decision. Marketers can use tactics such as discounts, limited-time offers, or personalised messages to encourage them to convert into paying customers.
Understanding the sales funnel can help businesses tailor their marketing strategies for each stage and increase their chances of converting leads into customers.
10. CRM
CRM stands for Customer Relationship Management and refers to businesses’ strategies, technologies, and practices to manage and analyse customer interactions and data throughout the customer lifecycle.
Some common features of CRM software include contact management, lead tracking and management, sales forecasting, marketing automation, and customer service support.
Leadtrekker, a CRM system in South Africa, is a top choice for many businesses due to its user-friendly interface and unique features. To get an overview of this CRM software, click here.
Summary
Digital marketing terms do not have to be difficult and confusing. Use this post as a guideline when you want to ask questions or learn more about digital marketing.
