Digital Marketing Glossary

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There are tons of digital marketing terminologies floating around these days, and keeping up with it all can be a daunting task!

From SEM to CTR and CAC, new terms are emerging all the time very quickly, and not knowing what they mean can make it difficult to keep up with your digital marketing conversations.

So, here is a list of 20 terms that will help the entrepreneur's life in the digital universe, facilitating their communication with agencies and digital marketing professionals.


Top 20 Digital Marketing Terms You Should Know
If you are looking for a way to improve your digital marketing vocabulary or want to find a digital marketing glossary, you are in the right place!


Conversion rate
Conversion rate is the percentage of customers, or potential customers, who take a specific action. The “specific action” could be anything from opening an email, starting a conversation on WhatsApp, or making a purchase. Since so many digital marketing efforts focus on getting a customer to take the next step in the sales funnel, conversion rate is an important metric.





Inbound marketing
Also called pull marketing, it refers to marketing efforts designed to attract potential customers to your website, brand, and products/services.


Examples of inbound marketing include SEO (search engine optimization) and social media marketing.


Customer Acquisition
Digital marketing is all about customer acquisition and retention. Customer acquisition refers to all the sales and marketing activities involved in acquiring a customer.


Customer Acquisition Cost (CAC)
Customer acquisition cost (CAC) tells you the average cost of acquiring a customer. You can calculate CAC using the following formula:



sales and marketing expenses ÷ total number of customers = CAC

CAC is important because, together with LTV (Lifetime Value), it can tell you a lot about the potential profitability of your business model.


Search Engine Optimization (SEO)
Search engine optimization (SEO) is one of the most common digital marketing terms that digital marketers come across.

Simply put, SEO is the process of increasing the quantity and quality of traffic to your website from unpaid web search results.

The “unpaid” part is important, after all, SEO excludes paid search.

Search Engine Marketing (SEM)
Search engine marketing (SEM) is the process of increasing the quantity and quality of traffic to your website using SEO and paid advertising. In simple terms, SEO + paid search results = SEM.



Search Engine Results Page (SERP)
The search engine results page (SERP) is the results page a user sees when they type a term into a search numeros de telefono chile engine. Generally speaking, the higher your SERP ranking for a given term, the more likely a user is to click on your result.


Print
An impression is the number of times an ad was delivered to users. The term is often used in the world of paid online advertising. For example, click-through rate (CTR) is calculated using clicks and impressions.





Click-through rate (CTR)
Click-through rate (CTR) is the percentage of clicks a campaign receives relative to the number of impressions. A higher CTR generally indicates that campaigns are resonating more effectively with users. The formula for CTR is:




(clicks on a campaign ÷ total campaign impressions) × 100 = CTR

For example, if a given campaign has 5 clicks and 500 impressions, the CTR will be 1%: (5 ÷ 500) × 100 = 1.

Cost per thousand (CPM)
Cost per mille (CPM) stands for cost per thousand impressions. CPM is often used to set the price for a given paid campaign.



Cost per click (CPC)
Cost-per-click (CPC) refers to the cost of each click in a paid search campaign. With the CPC model, you pay based on clicks rather than impressions. CPC is common in pay-per-click advertising, such as Google Ads.




Customer Relationship Management (CRM)
Customer Relationship Management (CRM) is the process of building, maintaining, and improving an organization's relationship with its customers.

Digital Marketing Analysis
Digital marketing analytics is a data-driven approach to measuring the effectiveness of actions taken within your company’s digital platforms. It can provide insights that make future campaigns more effective.



Bounce rate
Bounce rate is the proportion 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. In other words, they land on a single page and leave.


Return on Investment (ROI)
Return on investment (ROI) is the percentage of return obtained on a given investment.


A/B Testing
A/B testing is a test where two different versions of the same thing are tested and measured for effectiveness. In the world of digital marketing, the “thing” being tested is usually a web page, social media campaign, email campaign, paid ad, or signup form.




Customer segmentation
Customer segmentation is the process of categorizing and segmenting customers based on different criteria. The goal of customer segmentation is to allow you to group customers based on their needs, interests, and budget, as well as their potential value to your business.





18. Affiliate Marketing
A strategy that rewards 'affiliates', i.e. people outside of your business for bringing in new customers. Done through a promotion such as ads or content on the affiliate's website for a commission based on the number of customers generated.




19. Engagement rate
Metrics to track target audience engagement with a brand’s content. This digital marketing term is one of the most important metrics for a successful social media campaign, especially when the focus is on building a strong follower base.





20. ROAS or Return on Advertising Spend

A marketing metric used to measure the effectiveness of digital campaigns and calculate the return on investment in paid marketing, such as ad spend. ROAS helps you assess which methods are working and how to improve future efforts.