Marketing Jargon and Best Practices
There is a lot of slang and jargon used in marketing that you may or may not know. This being said, it is helpful and fairly important that you understand or at least have an idea of what some of the main terms and acronyms are. The following are some of the acronyms and names that we use the most at BOOM! Hopefully after reading this article you will feel more confident about digital marketing slang for the future.
Google “PLA” - Product Listing Ads
These are ads that appear when someone searches up a product on google. Oftentimes these ads appear at the top of the page and can have images, updated pricing information and more.
CTR - Click Through Rate
CTR is the percentage of people that receive an impression and click on the ad/link that is advertised. It is the total number of clicks that your page receives divided by the total number of times people had an opportunity to click.
CPA - Cost Per Acquisition
CPA is also often referred to as cost per action. CPA is the cost of receiving a specific action from the consumer (ex: purchase) related to how much was spent advertising. Mathematically, it is total acquisitions divided by the total cost of advertising.
CPM - Cost Per Million
CPM’s acronym stands for cost per million, but you can think about it as the cost Per one thousand Impressions. This means the cost for every thousand ads that reach consumers.
PPC - Pay-per-Click
In this way the advertiser pays a publisher for every click that their ad receives. Generally this is used to drive website traffic.
ROAS - Return on Ad Spend
This one is self explanatory. It is the measurable return (dollars) a company receives as compared to its spending on ads. ROAZ is one of the most highly used metrics to measure whether a marketing campaign is working and whether changes need to be made.
KPI - Key Performance Indicators
These are types of performance measurements that are used to evaluate how successfully an organization is at a specific activity. Some KPIs include Revenue growth, profit margin, client retention rate, along with many more
DMA - Designated Marketing Area
DMA is the geographical area where the public can receive ads, the same television and radio station offerings, as well as other internet content. An example of this would be whether you are trying to target a suburb, city, or rural area.
VCR -Video Completion Rate
VCR is the percentage of people that view a video (ad) and finish it. A widely accepted baseline for this is around 70%, but obviously the higher the better
CTV - Connected Television
CTV enables brands to reach their target audience on OTT devices such as smart TV’s. Connected TV devices include Xbox, PlayStation, Roku, Amazon Fire Tv, etc.
OTT - Over-The-Top.
We use OTT to directly advertise our clients products/ services to viewers via the internet. It goes around platforms such as cables, broadcast, and satellite platforms. Some common OTT examples include: Hulu, Netflix, Amazon Video, and Youtube.
Impressions
An impression is the moment when an ad loads on a consumer's web page. Impressions are seen as an opportunity for companies to advertise their business and hopefully influence a viewer to buy a product or service, or go to their website.
Clicks
Ad clicks measures the amount of times a specific ad was clicked on in order to reach an online destination (ex: company website)
Frequency
In advertising, frequency is the amount of times a person is exposed to a specific advertisement during a marketing campaign. Oftentimes increased frequencies are used for re-targeting purposes.
A/B Testing
A/B testing is a type of marketing experiment where you split the audience in order to better test different variations in the campaign to see what factors enable it to perform better. Thus in this type of testing a company would have at least two different versions of an ad or how it is implemented.
API - Application Programming Interface
This is a software intermediary that allows two applications to communicate between each other. It helps developers to provide information to marketers like us.
ROI - Return on Investment
Return on investment is self explanatory. In digital marketing ROI is calculated by dividing the profit earned from an ad by the cost of that ad.
SEO - Search engine Optimization
SEO is a process that revolves around improving the quality and quantity of website traffic to a website. Instead of targeting through direct or paid traffic SEO targets unpaid traffic.
B2B (Business-to-Business)
This is a strategy where businesses focus on selling to other businesses rather than individual consumers.
B2C (Business-to-Consumer)
Opposite of B2B, B2C targets individual consumers as customers.
Bounce Rate
Bounce Rate is the percentage of people that visit a website without taking any action. Actions include things such as: making a purchase, filling out a form, and clicking on alink. Thus, someone who bounces from a site is not a conversion.
Call-to-Action
CTA is an ad that prompts a customer to have an immediate response or make a sale. Call-to-actions vary greatly and can range from clicking a “purchase now” button to one that says “learn more.”
Conversion Rate
This is the average number of conversions per ad interaction. Oftentimes this appears as a percentage or a number between 0 and 1. It is calculated by taking the total number of conversions divided by total interactions/impressions.
HTML - HyperText Markup Language
HTML helps marketers understand the content on their websites. It allows people to edit and format content on a page, such as texts, images, and videos.
Landing Page
This is the page that someone “lands” on when they click on an ad, email, or other digital locations. Usually a landing page encourages a consumer to a call-to-action where they are prompted to buy or learn more information.
This is just some marketing jargon. There are many many more terms and acronyms that are important to truly understand marketing slang. That being said, this is a great start to understanding some of the most important concepts in universal marketing.