Must-know Words in the Digital Marketing Glossary
The world of digital marketing is filled with terms and phrases that you might have most likely heard of but still need to truly understand and explore.
What we have done in this blog is to select the most used acronyms and words that you as an online e-commerce store owner need to be familiar with.
1. KPI – an acronym for Key Performance Indicator, it measures if a company is achieving its marketing and business goals. For example, an e-commerce store owner would track KPIs like website traffic, cost per conversion, cart abandon rate, conversion rate, average order value, and many more.
2. CPA – stands for Cost per acquisition and it is the cost for acquiring one customer.
CPA = Total cost of the campaign/number of conversions.
If your CPA is too high then you need to make changes in your marketing campaign.
3. Lookalike audiences – Facebook allows advertisers to use the lookalike tool to find users whose demographics and psychographics are similar to those of your existing customers. It is an extremely powerful tool to target high-quality users and increase conversions.
4. A/B Split Testing – This technique allows you ti make variations of the same ad to see which one performs the best with your target audience. In A/B Testing you can switch up either the content, CTA or parts of the visual to understand which one gets you the most results. This gives you a better understanding of your audiences psyche and lets you then scale up the best performing ad and kill the one that doesn’t perform.
5. CTR – Click through rate tells you how many times a particular ad was clicked by a user.
CTR = Total number of clicks/ Impressions
6. Remarketing – This particular technique allows you to re-engage with users who have already interacted with your brand. A sure shot method to bring back users who have shown interest in your product.
7. Bounce Rate – This gives you the percentage of people who have navigated away from your website after looking at just one page. Needless to say, a high bounce rate is bad and a low bounce rate is good for your website.
8. Quality Score – With so many brands running ads for similar products like yours, how do Facebook and Google decide which ones to show first? Through the quality score! The higher the quality score means the more relevant your ads are which means more visibility for your ads as compared to your competitors.
9. ROAS – A marketing metric that measures the efficiency of a campaign is your Return on Ad Spend or ROAS. It helps you better your marketing strategy.
10. Tracking Code – One of the most essential elements of marketing is a tracking code. It is nothing but a small snippet of code that is embedded onto your website and allows advertisers to assess the flow of visitors, their behavior and activity on your website. It helps you retarget users and helps you mould your strategy for maximum results.
11. Unique Link clicks – Unlike total link clicks which gives you the number of times all of your visitors have clicked on your ad, unique link clicks gives you the number of people that have clicked on your link.
Hope this helped expand your digital marketing vocabulary and give you a better understanding of how to track your ROI by decreasing your CPC and increasing your ROAS.
We, at Arriba Labs, have the tools to help you do just that!
Get in touch with an Arriba representative to increase your sales and online visibility.