Marketing has its own language, and keeping up with the latest terms can be a challenge. Whether you’re a beginner or a seasoned marketer, you’ll find valuable insights in this glossary of digital marketing terms.
Here we present 20 must-know digital marketing terms that every marketer should familiarize themselves with.
Conversion Rate
Push Marketing
Push marketing refers to the use of targeted messages to reach a specific group of customers or prospects. Examples of push marketing include email campaigns, radio or TV ads, and digital signage in brick-and-mortar stores.
Pull Marketing
Also known as inbound marketing, pull marketing is the strategy of attracting prospects to your website, brand, and products or services. Examples of pull marketing include SEO and social media marketing.
Customer Acquisition
Customer acquisition refers to all the sales and marketing activities aimed at acquiring new customers. It is a critical aspect of digital marketing, as success depends on both acquiring new customers and retaining existing ones.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) tells you the average cost of acquiring a customer. You can calculate CAC by dividing sales and marketing expenses by the total number of customers. CAC is an important metric as it provides a good foundation for profitability when coupled with Customer Lifetime Value (CLV).
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is the amount of revenue a customer generates for your business over the course of their lifetime. CLV is an important metric as it provides an understanding of the profitability of your business model.
A simple formula for calculating CLV is average purchase amount * frequency of purchases * customer lifespan = CLV.
Search Engine Optimization (SEO)
Search Engine Optimization (SEO) is the process of improving the visibility of your website in unpaid web search results. The goal of SEO is to drive more traffic to your site from search engines and increase the quality of that traffic.
Search Engine Marketing (SEM)
Search Engine Marketing (SEM) is a broader term that encompasses both SEO and paid search advertising. SEM is the process of increasing the amount and quality of traffic to your website through both organic search results and paid search ads.
Search Engine Results Page (SERP)
Search Engine Results Page (SERP) is the page that appears after a user performs a search on a search engine. The SERP includes a list of organic search results and paid search ads.
Impression
An impression refers to a single instance when online content is displayed. This term is commonly used in the realm of paid online advertising, where metrics such as click-through rate (CTR) are calculated using both clicks and impressions.
Click-Through Rate (CTR)
Click-Through Rate (CTR) is the ratio of clicks to impressions or the number of times a user clicks on a link divided by the number of times the link was shown. CTR is a crucial metric for measuring the effectiveness of digital advertising.
Cost per Mille (CPM)
Cost per Mille (CPM) is a term used in marketing that is derived from the Latin language, with “mille” meaning “thousand”. It refers to the cost of a paid ad campaign based on the number of impressions. The CPM model calculates the cost per thousand impressions.
Cost per Click (CPC)
Cost per Click (CPC) is a marketing term that refers to the cost of each click in a paid search campaign. In this model, payment is made based on clicks instead of impressions. The CPC model is commonly used on pay-per-click platforms such as Google Ads.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) involves building, maintaining, and improving relationships with customers. Many digital marketers view CRM software as a crucial aspect of CRM, as the right software can provide contact management, customer segmentation, marketing automation, and sales analytics on a larger scale.
Content Management System (CMS)
A Content Management System (CMS) is software designed to simplify the process of creating a website and publishing content. Examples of popular CMS software include WordPress, which can streamline content management, SEO, and user management.
Marketing Analytics
Marketing Analytics and digital marketing go hand in hand. Marketing Analytics, also known as digital marketing analytics, is a data-driven approach to measuring the effectiveness of marketing. With the data collected from social media, web forms, and other mediums, marketing analytics can provide valuable insights to make future campaigns more effective.
Bounce Rate
Return on Investment (ROI)
Return on Investment (ROI) is the percentage return on a given investment. While there are many marketing-specific metrics, it is important to also understand the fundamentals, such as ROI. In the world of marketing, it can be challenging to attribute sales to a specific marketing campaign. However, marketing analytics tools and email marketing software such as Mailchimp can assist in attributing returns to specific campaigns.
A/B Test
A/B Tests, also known as split-run tests, are tests where two versions of the same item are measured for effectiveness. In digital marketing, the item being tested can be a web page, social media campaign, email campaign, digital advertisement, or sign-up form. To conduct an effective A/B test, digital marketers need to control all variables except the one being tested, ensure unbiased delivery, and capture a large enough sample size. CRM software or email marketing software can assist with A/B test implementation.
Customer Segmentation
Customer Segmentation, also referred to as market segmentation, involves categorizing and grouping customers based on different criteria. The objective of customer segmentation is to group customers based on their needs, interests, budget, and potential value to the business. By properly segmenting customer information, targeted and useful information can be sent to customers, resulting in increased conversion rates and marketing ROI.
The Importance of Understanding the "Why" Behind Digital Marketing Terms
While having a comprehensive understanding of digital marketing terms is useful, it is equally important to understand the “why” behind each term. As you go through any list of terms, make sure to comprehend the reason for each term’s existence.
For instance, customer segmentation is significant because it enables marketers to deliver more relevant and targeted information to their potential customers. Similarly, metrics such as ROI, CAC, and CLV help marketers evaluate the profitability of their campaigns.
By focusing on the “why”, marketers can better understand how to apply these terms to their marketing strategies and make informed decisions on their usage.
Final Thoughts
We’re glad that this guide has been helpful in providing you with a comprehensive understanding of the key 20 digital marketing terms and jargon. Understanding these terms is essential to effectively plan and execute your marketing strategies. If there’s any term that you would like further clarification on, feel free to reach out to us in the comments section below. We’re here to help!