20 Essential Digital Marketing Terms in 2022 You Should Know

20 Essential Digital Marketing Terms in 2022 You Should Know

1.       Conversion Rate: is the percentage of customers, or potential customers

that take a specific action. The "specific action" can be anything from opening an email, to signing up for a demo, to making a purchase. Conversion Rate is an important marketing metric.

2.       Push Marketing: refers to marketing efforts designed to send targeted messages to a given set of potential or existing customers. Examples of push marketing include targeted email campaigns, television and radio ads, and line-of-sight ads using digital signage on brick-and-mortar stores

3.       Pull Marketing also known as inbound marketing, refers to efforts to "pull" customers to your website, brand, and products of service.

E.g.) SEO (Search Engine Optimization) and Social Media Marketing

4.       Customer Acquisition:  Digital Marketing is all about customer acquisition and retention. Refer to all of the sales and marketing activities involved in obtaining a customer.

5.       Customer Acquisition Cost (CAC): tells you the average cost of acquiring a customer. The formula is:

CAC = sales & marketing expenses / total # of customers

6. Customer Lifetime Value: tells you amount of revenue a customer generates for your business. CLV is sometimes referred to as LVC or Lifetime Customer Value. There are many ways to calculate CLV, here is the simplest:

CLV = average purchase amount x frequency of purchase x customer lifespan


Here are a few rules of thumb you can use to evaluate your business model using CLV and CAC:

A) If CLV divided by CAC is higher than 1, each incremental customer is costing you money

B) If CLV divided by CAC is lower than 1, each incremental customer is bringing in money

C) Generally, having a CAC that is 1/4 to 1/3 of your CLV is considered a good foundation for profitability

If your CAS costs are lower than that, you may be under investing in customer acquisition

7.       Search Engine Optimization (SEO): is one of the most common marketing terms digital marketers’ encounter. SEO is the process of increasing the amount of quality traffic to your website from unpaid web search results.

8.       Search Engine Marketing (SEM): is the process of increasing the quality of traffic to your website using SEO and paid advertising.

9.       Search Engine Results Page (SERP): is the page results a user sees when they type a term into the search engine. Generally speaking, the higher your SERP ranking for a given term the more likely a user is to go click your link.

10.   Impression: is an instance of a piece of online content being shown. Often, the term is used in the world of paid online ads. For example, clickthrough rate (CTR) is calculated using clicks and impressions.

11.   Clickthrough Rate (CTR): is the percentage of clicks a campaign receives relative to the number of impressions. A higher CTR often implies that campaigns are resonating most effectively with viewers. The formula for CTR is:

CTR = (clicks on a campaign/ total campaign impressions) x 100

For example, if a given ad campaign has 5 clicks and 500 impressions, the CTR is 1% (5/500*100) =1%

12.   Cost per Mille (CPM): “mille” in Latin is thousand. CPM is cost per 1000 impressions. CPM is often used for setting the price of a given paid ad campaign.

13.   Cost per Click (CPC): is the marketing jargon for the cost of each click in a paid ad search campaign. With the CPC model, you pay based on clocks as opposed to impressions.

CPC is popular with Google Ads

14.   Customer Relationship Management (CRM): is the process of building, maintaining, and enhancing an organizations relationship with its customers.

15.   Content Management System (CMS): is a type of software designed to simplify the process of creating a website and publishing content.

16.   Marketing Analytics: Marketing Analytics and Digital Marketing go hand-in-hand. Marketing Analytics is a data driven approach to the measurement of marketing effectiveness.

17.   Bounce Rate: is the ratio of how many users “bounce” after visiting your website. A “bounce” is a visit to your website that doesn’t involve the user visiting any other pages or taking any other action.

18.   Return on Investment (ROI): is the percentage of return made from a given investment. While there are plenty of marketing-specific metrics you’ll come across throughout the marketing process, ROI is an important fundamental not to overlook.

19.   A/B Test: sometimes referred to as split-run tests, are tests that two different versions of the same thing are tested for effectiveness.

20.   Customer Segmentation: also known as market segmentation, is the process of categorizing and segmenting customers based off different criteria. The objective of customer segmentation is to enable you to group customers based off their needs, interests, and budget, as well as their potential value to your business.

By properly segmenting your customer contact information, you can send more targeted and useful information that your customers are likely to find compelling. For example, proper customer segmentation is a big part of creating an effective email blast. You may also boost your conversion rates and overall marketing ROI. 



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