No matter what industry, FundKite sees a lot of requests for funding to be put towards marketing, but while the return on investment makes repayment easy, many business owners could reap even more benefit from their advertising if they better understood the digital marketing terms that go into creating their campaigns.
Some small businesses have a full-time marketing department while others contract out do it themselves. The route a businesses owner chooses depends a lot on their own marketing knowledge, their industry and if the returns cover a marketing salary.
If you’re taking marketing upon yourself or want to understand what the marketing department is doing, start with understanding these most important digital marketing terms.
CTA – Call To Action: A call to action is some type of button with copy calling the target audience to take action and interact with your ad or business. A CTA can have different aims such as click, purchase, enter email, proceed to website, or anything else and can be used in social media advertisements, email campaigns, Google ads or on your website. An effective CTA is attention grabbing but also short and sweet.
CTR – Click Through Rate: The click through rate shows how many times an ad was clicked on by users. You determine the actual rate by taking the total number of clicks your ad (social media, google, blog post) received and divide it by the impressions (number of times it was shown).
ROI – Return on Investment: This is a common and extremely important term because it measures how much profit you got back from the amount of money you put into a campaign. You use it to measure results. If the ROI on an investment is negative, you’re losing money and should look into adjusting the advertisement copy, CTA, image demographics or other aspects.
PPC – Pay Per Click: Pay per click is when you only pay for your ad if someone clicks it or interacts with it. These paid ads are often run on Google or another type of publisher (a search engine, website owner, or a network of websites) and can help your SEO ranking by driving traffic to your website, but will cost more for higher rankings.
KPI – Key Performance Indicator: Your KPI can be any type of analytic like a click through rate, engagement rate, bounce rate and so on. KPI’s appear in all types of marketing and are used to measure the success, or failure, of campaigns.
SEO – Search Engine Optimization: SEO is the organic way to move your site up in search engine rankings using keywords and hefty content. There are many components of boosting SEO such as selecting target keywords (without keyword stuffing), writing blogs for constant fresh content and acquiring backlinks from other highly ranked sites.
SERP – Search Engine Results Page: Google and other search engines list search results on pages, and where you rank determines how much traffic you get (along with titles and meta descriptions) Search results for SERPs are determined by secret search engine algorithms that often change, but plugins on your website can help you adapt.
A/B Split Testing – Commonly used with email subject lines, A/B testing is a way to test a small batch of two campaigns and see which one gets the best results, then use the higher performing campaign to send out to the main email list. You can also use this testing with Google Ads, switching up copy and images.
Bounce Rate – A bounce rate in terms of search engine digital marketing is when a user lands on your site and only views one page, essentially bouncing away very quickly. A high bounce rate tells Google you don’t have valuable content more to offer on your website. If this number, shown on Google Analytics, is high, you will need to make adjustments such as adding a trending content bar or more internal links in the text. The more time a viewer spends on your site, the higher you can move up in search rankings.
CRP – Conversion Rate Percentage: Also known as a conversion rate, this is the number of people you successfully enticed with your CTA. The conversion to take the desired action can be: filling out a form, registering, signing up for a newsletter or email, making a purchase, or other intended action but it is not browsing a web page.
Impressions – Sometimes called a view, an impression is a digital marketing term that refers to the point in which an ad is viewed once by a visitor or audience member. By tracking impressions and comparing it to engagement rate, CTR and CRP, marketing teams can determine if the advertising campaign is working or not. This is measured with CPI – Cost Per Impression. Impressions are not the same as rech. Reach measures how many people see your content and impressions measure how many times your ad or content was displayed. Impressions build brand recognition while reach will help you build your brand.
CPA – Cost Per Acquisition: Also known as CAC Customer Acquisition Cost This metric is used to determine how much it costs to acquire one customer. You can calculate this by dividing the total cost of your campaign by the number of conversions. Once you see the breakdown of how much you are spending per conversion, you can see if you are spending too much and should rework any aspects of your campaign.
CPL – Cost Per Lead: Similar to CPA/CAC, this metric determines the total cost of digital marketing to acquire a lead. CPL differs in that the customer is not fully acquired, you merely have their information and still need to sell them from there.
Pixel – A pixel is a snippet of code that is inserted onto your website for tracking purposes. It can gather analytics and data on your customers and their behavior flow on your website. You can also use pixels to retarget customers with Facebook ads and remind them of the shoes they thought were cute but didn’t buy.
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