Digital Marketers have their own language, just like doctors and lawyers. Since its constantly evolving, the dictionary for digital marketing terms is still in the making. As an online marketer, it is imperative to know some of the most popular terms used to increase the confidence in your strategic communication. To be a top-tier digital marketer, it is imperative to know some of the popular and common terms used to improve your strategic communication.

Here are 10 Digital Marketing Terms You Should Know

Key Performance Indicator (KPI)

All types of marketing and businesses use digital marketing KPIs in their fabric. It is a measurable value that demonstrates how well a company is achieving its key business objectives and marketing goals. It is a crucial digital marketing metric as it tracks the success of campaigns and ROI in marketing efforts.

A/B Split Testing

It is a process of comparing two designs or ad-sets at the same time,  with shared objective, to analyze which performs better. Marketers send two variations to a partial list, then deliver the best-performing variation to the remaining target audience. Normally used in  social media and email marketing (like which subject line works better) or Call to Action(like which colour receives higher clicks), it helps in improving marketing efforts.

Remarketing

This digital marketing term is all about re-connecting with your website visitors who did not take any action. It’s a cost effective and a very smart way to keep reminding your visitors to make a purchase. Remarketing places ads on the Google Display Network while your audience browses elsewhere on the internet.

CTA

Although not a novel digital marketing term, CTAs contributes significantly to digital marketing efforts. It helps in converting the lead into a customer. It is nothing but a URL to a landing page where your audience can take actions like fill form, buy something, watch a video or download something. Effective campaigns set clear goals and achieve them through CTA links.

Infographics

Infographics are a visual representation of the data. They bring in the appearance of the content in a more attractive manner and grabs the attention of the customer. Information in graphical format, makes complex information easy to understand.

Conversion Path

It is the process or series of actions that a lead travels through before becoming a customer. The percentage of leads who actually get converted into a customer gives you conversion rate. Conversion Rate Optimization is a process that increases the conversion by improving the conversion path.

Business Blogging

Business Blogging is exactly similar to the normal blogging, however, the objective here is to get more visibility to your business online.  It helps you to grow your business, by driving traffic to your content, ascertaining your expertise in the domain, thereby leading to conversions. Business bloggers create posts for that contains keywords or topics that their target audience might be looking for.

CMS

This digital marketing term is short for Content Management System which is a software that is used to create and manage the content on your website. Basically, the it takes care of the backend coding of a website. It enables users to edit, publish, create and archive web pages, blogs, articles, etc in a very efficient manner.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost is the cost of convincing the customer to buy a product or service. It’s a digital marketing metric that helps in understanding the business and the resources that are required to attract the customers.

CAC = Cost of sales/ The number of a new customer acquired.

The CAC is calculated based on the evaluation period (monthly, quarterly, annually).

LTV in comparison to CAC

One of the tactics to analyze customer acquisition cost is a customer’s Lifetime Value (LTV). It is the predicted revenue that one customer will generate over a period of time in a relationship with the company. When calculating LTV, you need to consider variables such as average purchase value, average purchase frequency, customer value, and average customer lifespan.

Customer Value = Average Purchase Value*Average Purchase Frequency.

LTV = Average Customer Lifespan*Customer Value

Engagement Rate

Engagement rate is a metric that measures the level of interactions that your content receives from your target audience. Typical social media engagements include liking, commenting, sharing while the counter for emails includ replying, forwarding, and clicking on the URL. Good quality and relevant content is the key ingredient for high engagement rate.

So there you go! That covers the list of the 10 crucial digital marketing terms you should know to stay updated and informed. Stay tuned for the list on 10 marketing concepts. Ready to optimize your marketing strategies and maximize customer lifetime value? Partner with Shail Digital to unlock data-driven insights and boost your ROI. Let’s get started today!

Happy Digital Marketing!