Whether you’re new to digital marketing or a seasoned specialist, the jargon that dominates this ever-growing industry can be confusing. Since it’s abundant in acronyms and similar-sounding terms, it’s useful to brush up on your online vocabulary. While achieving fluency in marketing-speak is definitely ideal, here are 7 online digital marketing terms that are a perfect foundation for starting or improving your business campaigns.
Online Digital Marketing Term #1 – KPI
Key performance indicators are fundamental to any business as you can find them in any type of marketing. KPIs are the bread and butter of your online digital marketing glossary–they are quantifiable measures that determine the feasibility and success of your business goals.
KPIs are a good measure of where your business currently stands, relative to where it previously did and eventually will be.
KPIs are data-driven information such as leads, conversions, sales, and profit. They’re metrics that help you refine your strategies by demonstrating their overall performance.
While most KPIs are financial measures, some also communicate other values that relate to customer satisfaction, brand growth, and employee performance. Having fewer, more focused KPIs allow for your goals to be easily measurable and communicable.
Your KPIs can also address internal factors like your business’ feedback, staff training, and workplace morale.
Online Digital Marketing Term #2 – ROI
Your return of investment is a vital business statistic for determining the success of your marketing activity. Digital marketing revolves around making investments: large investments in site design, for example, or small ones in social media ads. This is a term that’s linked to conversion –after all, the more people convert through your ads and collaterals, the greater your ROI.
Calculating ROI is subtracting the cost of investment from its gain and dividing this amount by the total cost of investment. ROI will usually suggest the profitability of your investment, but can also measure the success of a campaign, providing insight on whether this should be maintained, improved, or terminated.
ROI is good to know because it puts success in real, hard terms. Working without a concept of measuring ROI is merely guesswork.
Online Digital Marketing Term #3 – SEO
Online digital marketing is the preferred strategy of a growing number of businesses. Since having an online presence is the key to success, search engine optimization is an essential way to get your website to rank online. In fact, 92% of Google users will only spot your website if it is within the top 10 rankings.
So while a website’s principal goal may be visibility and searchability, an effective SEO strategy can also provide credibility, increased engagement, and better user experiences.
The bulk of SEO is optimizing your platforms, mainly through content and, most importantly, keywords. If, for example, your services involve graphic design, SEO work makes sure that your website is on the front page of Google whenever someone searches for, “graphic design.”
Online Digital Marketing Term #4 – CPA
Profit is an obvious goal for all businesses, and is achieved by acquiring customers. A cost per acquisition metric determines how much your advertising investments would cost to convert a single customer.
A CPA pricing model is more beneficial to a business’ advertising campaign as it allows one to define an acquisition–such as a sale or sign-up–before ads are even run. The lower your CPA is, the better it is for your budget.
Measuring CPA is useful for tracking the effectiveness of your ad performance and whether elements of your campaign need to be adjusted based on customer preferences. Incorporating a CPA campaign into your business model is also low risk for advertisers, as payouts only occur when a service is accomplished.
Online Digital Marketing Term #5 – Audit
A marketing audit is particularly useful to new businesses, as it allows one to review the effectiveness of current strategies. An audit is a comprehensive analysis of a business strategy that creates a benchmark for monitoring marketing activity. Fundamentally a measure of strengths and weaknesses, an audit is also about understanding prospective customers through market research.
You can apply this to your competitors’ assets and activities in order to gauge how well the rest of your industry create and deploy their advertising campaigns.
Reviewing one’s own internal marketing environment is an aspect of auditing that is often underrated and overlooked. Beyond your individual campaigns, it’s equally important to account for your business’ resources, promotional vehicles, and the quality of your staff.
Online Digital Marketing Term #6 – Engagements
The best way to tell if your content is doing its job is to monitor how many people interact with it. Engagements are the goal when building an appealing and interactive brand; the higher your engagement rate, the more well-received your content is.
Positive engagements build trust between current and prospective customers. Favorable reviews and endorsements expand your marketing reach and boost brand awareness, especially for businesses with more active social media platforms.
Likewise, having a healthy number of comments and shares demonstrates social proof: the idea that since other people like your brand enough to engage with you, your brand must be worth liking.
Aside from developing good content, you can achieve social media engagement by offering incentives in return for online sharing, building rapport with your customers through two-way communication, and promoting your social platforms on your website.
Online Digital Marketing Term #7 – Remarketing
In today’s online digital marketing landscape, it’s a common misconception that users are instinctively hostile towards ads. In truth, most consumers prefer filtering out irrelevant ads with ad-blockers.
Smart marketers make sure to target relevant ads to already-engaged users through remarketing. Remarketing targets online users that have already viewed or expressed interest in your business’ products or services.
By displaying specialized ads that have been curated to match those users’ interests and place along your sales funnel, remarketing loops interested customers back in for another round of persuasion.
Successful remarketing will level out your click-throughs and conversion rate. On the whole, it is an effective way to get customers who have already expressed an interest in your business to follow through –easily a more achievable task than starting from scratch with new leads.
A business can start with as little as an idea, but growing it requires a thorough understanding of how your industry functions. Knowing your marketing vocabulary makes the realms of information and awareness that much more approachable, and it’s vital to building practical skills and opportunities for expanding your business.
If you’re looking to turn a profit from better online digital marketing, visit the Marketing Agency Network to find a partner that’s sure to know how to walk you through these terms we’ve listed and use them to your favor.