Abbreviations and Acronyms in digital marketing
In digital marketing there is an abundance of abbreviations and acronyms. In our everyday lives, these abbreviations have to do all the time. It is constantly new and some are old so the overview below we will try to keep up to date. If we missed out on some, please contact us and we will add them.
Account-based marketing is a strategy for marketing itself to a defined range of companies/organisations. The method involves exposing the employees in the defined companies to adapted and personalized content. Using this method you build relationships and a large contact network within the chosen organisations.
Artificial Intelligence – is about how a digital device can carry out tasks we normally associate with intelligent beings such as humans and animals. AI may be the ability to discover meaning, learn from experience and justify claims.
Anchor Text, link text or link title is the text that is visible and clickable in a hyperlink. The text should be descriptive of the content it leads to. Avoid using “here” etc. The anchor text sends a signal to Google about what content it is about.
Bottom Of Funnel – Often used in connection with inbound marketing. BOFU describes a stage in the purchasing area where the potential customer has gone through TOFU and MOFU. At this stage, the potential customer is ready to buy and the content that appears should secure the buyer that they make the right choice. For example, it may be blog content such as “This should you know when choosing a supplier of …” etc. CTA is often very action- triggering such as. “Book meeting”, “Call me” etc.
Bounce Rate – The percentage that leaves your site after only seeing one page. In most cases, you want the person who comes to your site to spend time there and read more pages. If a page on your site has a higher bounce rate than your other pages, you should investigate why. Possible reasons may be long loading time, poor usability etc.
Customer Acquisition Cost – The total cost you spend on sales and marketing to get one customer. Add all the costs and divide by the number of new customers and you will find CAC. This is particularly appropriate to know when you also know what a customer is worth on average. If the calculation is not positive then something needs to be done.
Cost Per Acquisition/Action – CPA is a pricing model for digital advertising purchases where one pays an agreed price per the desired action. The action can be a purchase, a completed form etc. Many advertisers want this model because it provides good predictability.
Cost Per Click – Paying per click is a common model when advertising digitally. When using AdWords (keyword advertising) you pay per click and the same applies to some ad formats on Facebook and more.
Cost Per Lead – Is what it costs to get a new lead or inquiry from a potential customer through different channels. CPL will vary depending on which channel you use and are the basis for optimising your marketing activities.
Cost Per Thousand/(Cost per Mille) – A standard pricing model for ad purchases digitally is CPM which means you pay per 1000 impressions. This is particularly relevant when it comes to banner advertising. Depending on where the ads are displayed, CPM can vary widely from around £2 to £200
Cost Per View – A pricing model for paid video viewing online. This model is used by YouTube and Facebook. The two measure a “view” in very different ways so prices are difficult to compare. A “view” on YouTube is when the user has seen at least 30 seconds or the entire movie if it is shorter, while a “view” on Facebook is when the user has watched 3 seconds.
Conversion Rate – The conversion rate is the percentage that performed the action you wanted on a website or the like.
70 / 1200 * 100 = 5.83%
Generally speaking, we can say that we want the conversion rate as high as possible because we mostly have to pay for the traffic and therefore we want as many as possible to achieve the goal.
Conversion Rate Optimization – Is about continually improving how well the traffic converts, or said in a different way, performing the action you want. CRO often involves a lot of testing and minor changes in content, design, functionality, etc. Most often you do CRO on a web page/landing page.
Call To Action – A CTA is something that encourages action. There are often a few clear phrases and a button that you are encouraged to press. See a good example at Netflix. By making their benefits clear they make it tempting to sign up. The process of testing out various CTAs is often included when optimizing for conversions (CRO).
Click-Through Rate – Is a percentage that tells us how many people click on a link in relation to how many impressions it has. CTR is used to measure how effective/interesting the message we have created is for the audience who sees them. We measure CTR on both advertisements and in newsletters.
We want to have as high a CTR as possible because we then know that the ads are perceived as relevant to those who see them. CTR varies greatly depending on which channel is used.
Demand Side Platform – A DSP is a system that purchasers of programmable digital ads are using to manage campaigns. Through the system we can determine the budget, period, bidding and what messages we are going to convey. The platform also provides the functionality to choose where the ads should appear and to which target groups.
Growth Driven Design – Is a method developed for designing or redesigning web pages. Instead of the traditional way of building web sites, GDD is based on data collected along the way. The first thing we do when delivering web pages with GDD is to build a minimum page and launch it quickly – this is called a “launch pad”. Furthermore, the site will be developed based on testing hypotheses live by the users of the site.
Key Performance Indicator – Help us assess the effect of different processes and measures that help to achieve the organisation’s goals.
Examples of KPIs used in digital marketing are CPL (Cost per Lead), organic traffic to the website, number of completed forms, number of new subscriptions to newsletters, etc.
Middle Of FUnnel – Describes the stage a buyer is in when he/she is in the middle of the buying funnel. The term is often used in inbound marketing. This stage is crucial to understanding if the potential customer is ready for you to reach out to. After catching the interest in the TOFU phase, the lead will now be more qualified. This is done by having content that tells you how your products and/or services can solve the problem the lead has.
Pay Per Click – A payment model for advertising on the internet. There are two different ways to use PPC (pay per click), one is a fixed price per click that is agreed between the publisher and the advertiser and the other is where it goes on auction. The latter is the one that is most commonly used and is relevant, for example, in keyword advertising (AdWords) and in social media such as Facebook.
Remarketing Lists for Search Ads – Using Google Analytics and Google AdWords, we can create lists of those who have visited our site and specifically target them when they do a Google search. For example, it would be relevant to bid higher on some keywords when the user has already shown interest in our service or product. It is also possible to use another ad text for these lists. In many cases, we see very good results in the form of low cost per conversion when we use this method. (This is because they’ve already been on our website and have knowledge of us!)
Return On Investment – ROI in digital marketing is about measuring how much return the various activities provide. Some are easy to figure out, such as a keyword campaign (AdWords) where we take the profit divided by the cost of the campaign. Other activities are more difficult to measure in this way, such as SEO or content marketing.
Run-Of-Network is a form of placement of digital ads where ads are placed on a wide variety of sites within an ad network. Typically, a media house (e.g. a publisher etc.) will have a number of web pages that the ads can be placed on depending on inventory.
Buying with this method results in poorer targeting, but can often provide low prices.
Research Online Purchase Offline is used to describe the sales that take place after the consumer has examined the product online, but ended up buying in a physical store. This has previously been challenging to measure, but by using different methods matching this is now possible to get an overview of.
Run-Of-Site is a term used by media agencies and publishers. This means that a digital advertising campaign targets all pages on a given website. This can be a good idea when the campaign is of interest to a wide audience or when all pages of the site are relevant to the ad.
In general, one can say that this type of location provides low prices and wide reach. Ads will often be randomly placed in unsold, less valuable parts of the site.
Real Time Bidding is a way to buy ads using a programmatic instant auction. The moment a user is about to load a page online, an auction will be held on the ad slots that are on that page. Depending on who the user is, different advertisers will compete with different bids. Whoever wins the auction will be shown his ad. All this takes place during nanoseconds.
Search Engine Marketing is divided into two main groups where one is paid search, e.g. AdWords, and the other is SEO (Search Engine Optimization). Common to both is that we are interested in being visible to those searching for our products and services.
Paid search is done using systems where you set up campaigns with keywords and write text ads. It is common to set a daily budget on what you are most willing to spend on advertising daily.
Search Engine Optimization is what we do when we make sure our site is optimised to be found in the search engines.
We want our websites to be found by those who search for our products and/or services. Therefore, it is important that our pages are set up correctly and contain relevant and good content.
Search Engines’ (Google, Bing etc.) algorithms determine which web pages come first. The algorithm takes into account a number of factors such as inbound links, image information, text keywords etc. SEO is a comprehensive subject that is constantly changing as search engines are constantly updating their algorithm and becoming smarter and smarter, but basically it is about to respond well to what the searcher wants an answer on.
Search Engine Results Page – SERP is a search results page, for example in Google. We do analyses of the SERP to understand what kind of content ranks high in the search engines and using this as insight when we create our own content.
Specific, Measurable, Attainable, Relevant, Time-bound – A way to set goals. A SMART goal is specific, measurable, achievable, relevant, and time-limited. Setting goals in this way make it easy to measure whether you actually reach the goals you set.
Over the course of a year, our landing pages will generate 25% more potential customers by optimizing them for mobile.
Search Impression Share – This is a percentage that tells you how often our keyword ad appears when searching for the keywords we bid. We want to be 100% visible but are often limited by budget and/or quality on the landing page.
Top Of FUnnel – This is the stage a potential customer is in when he/she is at the top of the sales funnel. It is often used in connection with inbound marketing and is regarded as the fuel in a well thought-out strategy for inbound marketing. The purpose is to get as many potential customers as possible to find you in the multitude of competitors, both directly and those you compete with for traffic. To be visible, you need to produce good content that is relevant for the searcher and therefore it will rank high in Google.
Urchin Tracking Module – A UTM code is used to track where and with what means traffic comes from in Google Analytics. The UTM code is added to the URL used in the various traffic drivers such as ads, newsletters, etc.
For example, we will add UTM code to a URL used in a Facebook ad. Then, in Analytics, we can see what traffic that came from that ad and what they did when they came to our site. Often we will have several different ads with the same goal and if we have marked them with different UTM codes we can see which ones work best.
Video Completion Rate – When using video in digital marketing, you can measure how many people see the whole movie through. It is also possible to measure how far each individual has seen a video – for example, how many viewed only 50%, 75%, etc. It provides useful insights into what works and what can be done better.
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