Online Marketing 101 Part 2 - Terminology
Welcome to Part 2 of our Online Marketing 101 blog series. Now that we’ve covered Part 1, which covered the overall idea behind Online Marketing, we’re going to begin speaking with a little more granularity. This means that we’ll need to define some basic terms so that you’ll know what we’re talking about when we mention how different marketing strategies and tactics may influence your online presence, and therefore your business.
Digital Marketing Definitions
We’ll go through each of these briefly to help gain some familiarity, but may go into greater detail in a future blog. If you have any questions about what these mean, let us know in the comment section, and we’ll clarify it for you directly, and for everyone else in a future blog.
Call to Action
A call to action (CTA) refers to the activity you explicitly are asking your audience to do in an advertisement. This is usually at the bottom of an ad or the end of a piece of content. The most common ones are “shop now,” “learn more,” and “schedule a free consultation.”
Traffic
Traffic measures how many people are visiting your website over a specified period of time. It’s worth Noting that not all Traffic is good traffic, however, and that sometimes a traffic spike can be deceiving. More on that next
Bounce Rate
The bounce rate refers to how many people visit just one page on your website before leaving. This could be for a variety of reasons. It usually means one of three things, though: 1) They were expecting something different from your page, 2) they were dissatisfied with what they saw on your page, 3) they found everything they thought they needed to know.
Click-Through Rate
This number refers to how many people go on to click on something else in your website after landing on their initial page. A high click-through-rate is usually a good indicator that you’re attracting the right audience.
Ad Impression
This refers to how many times your advertisement has been seen online, regardless of whether or not someone has clicked on the ad, or whether the person has even noticed it. You generally need to be seen many times before someone will act on your Call-to-action on your ad.
Frequency
This number refers to how many times a person has seen an ad. Paying attention to this number in relation to your conversion rate will tell you how much tenacity with which to approach your ideal audience
Conversion Rate
The Conversion Rate measures how often people “convert” or perform the desired action. For many online retailers, the conversion will be an online purchase, but for local companies who don’t sell things online, a more meaningful conversion might be them dialing your phone number, or looking up directions.
Tracking Pixel
A tracking pixel is a small bit of code that many advertisers and analytics services will embed into your web code in order to track the effectiveness of a campaign. It’s how Facebook can tell whether they can rightfully attribute a conversion on your website to someone sent by one of the ads on their site. Many of the cross-platform complications have been resolved by data consolidation services, like Google Data Studio
Cost per Acquisition
The cost per Acquisition is a formula that determines how many ad dollars it cost before a customer converted. This conversion. Knowing this cost will help determine which marketing campaigns are worthwhile or not, after you have determined what a customer is worth to you.
Customer Lifetime Value
The customer lifetime value is a measure how much a customer is likely to spend to you over a certain duration of time. Say you’re operating a nursery and spend $5 to get someone who is searching for garden shears in Mill Creek, WA. After your cost of goods, the $25 they spend on shears doesn’t likely make that one transaction worth it to your business, but it gives you a chance to win their business for all things gardening-related.
These are only some of the basics of digital marketing terminology, but they help you understand the framework behind how to measure a given campaign’s effectiveness. If you have any questions about these, go ahead and ask in the comments below, or if you want help incorporating these principles into your business, schedule a free consultation today.
