Digital Marketing Terms: 10 Terminologies You Should Know

Digital marketing is not a one-time activity. Everything is always evolving, including technological advancements, digital marketing services, and terms. Hence, to be effective and flourish in this fast-paced, ever-changing environment, you must remain on top of new tools, methods, and ideas. Therefore, to help you start with this new trend, we’ll give you some digital marketing terms to take note of.

Top 10 Digital Marketing Terms You Should Know

Below are some of the digital marketing terms that are considered the marketing pillars. Whether you are new to the digital marketing industry or not, familiarizing yourself with these terms is a must.

1. Key Performance Indicators (KPI)

These are important or key indicators of progress toward a goal. KPIs serve as a focal point for strategic and operational improvement, providing an analytical foundation for decision-making and focusing attention on the most important issues.

2. Conversion Rate

The percentage of users who execute an intended action is recorded as a conversion rate. These actions can be signing up for newsletters, opening an email, or purchasing. Thus, the conversion rate is an important metric to track, and it’s frequently used as a KPI in digital marketing efforts.

3. Engagement Rate

This is basically the metrics used to assess how a target market is engaging with a company’s content. This digital marketing term is one of the most powerful indicators of social media campaign success, especially when the goal is to grow your social profile’s subscriber or follower base.

4. A/B Testing

This process is also called split testing. You can use conversion rate in testing e-newsletters, email subject lines, social advertisements, calls-to-action, and landing page content to determine which version has a higher probability of generating the desired action, such as a paid membership subscription.

5. Cost per Click or CPC

CPC is the pricing model used to measure the cost of each click on an advertisement. It is basically designed to drive traffic to a site and is an essential marketing metric. In addition, it shows how much a business pays for people to click on their advertisement.

6. Click-Through Rate

Also known as CTR, this formula shows the percentage of users who click on links that are placed in ads, emails, or websites. Generally, it measures the active users who engage with linked content on a site. The formula here is CTR = (click-throughs/impressions) x 100.

7. Conversion Rate Optimization

It is the method of improving a website’s conversion rate by increasing the percentage of visitors that complete the target CTA. CRO is a marketing technique that improves the percentage of visitors who become paying customers by improving the user experience, generating quality leads, and reducing the time it takes to close deals.

8. Customer Relationship Management

CRM is a collection of tools marketing businesses use to manage customer data, evaluate customer interactions, and get relevant data in real-time. It is also used to update and enhance customer relationship approaches. Additionally, it helps personalize and target marketing services.

9. Bounce Rate

The bounce rate is the percentage of site visits that are single-page sessions, with the visitor quitting without reading the second page. Social media marketers use this to assess the overall engagement of a website.

10. Return on Investment

Return on investment simply compares the profit generated by a digital marketing campaign to the cost of creating and deploying the campaign. Ideally, you want the highest possible ROI.

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