The vast world of digital marketing is full of terms and acronyms that, at first, might seem overwhelming. Fortunately, our Destination Marketing team stays up to date on all the latest terminology so that we can better help our clients achieve their digital marketing goals. While, truthfully, there’s hundreds of marketing terms out there, here are ten essential terms that are commonly found within the digital marketing industry.
KPI (Key Performance Indicator)
Digital marketing KPIs (Key Performance Indicators) refers to the use of data to track and measure the performance of your campaign. Your KPI can be any type of analytic that’s important to your company’s success, such as your click through rate, bounce rate, impressions (all of which terms we define below), and so on. In addition to analyzing data, current KPI statuses can be used to predict future campaign performances.
Your company’s online landing page refers to the specific URL destination that users are taken to begin their customer journey. Landing pages are a key component of digital marketing and are often designed to inform, generate sales, and capture leads. Landing pages can be short or long depending on the specific action you want your online visitors to take.
A high bounce rate is the opposite of what company’s hope for when sending online users to their landing page. Referring to when a user is “bouncing” off your website, this term defines when a visitor lands on your website and immediately leaves. Having a low bounce rate means your website is likely doing something right, although, a high bounce rate means that it’s time to go back to reevaluate what your website is communicating.
Opposite to your bounce rate, a conversion rate defines the percentage of users who completed a desired action. Your desired action, otherwise known as your KPI, can range from users purchasing a product to subscribing to your email newsletter. Conversion rates are nearly always data-driven, and this term is one of the most common parameters used to determine the performance of any marketing campaign.
It’s best to split test, also known as A/B testing, when running any type of advertisement. A/B testing is when a company runs 2-3 similar ads at once to see which performs best. Data from running split test campaigns can provide valuable information about your customers and help determine which specific visuals and copy can better assist you in achieving your KPI.
CTR (Click Through Rate)
Your ad’s CTR (Click Through Rate) is a metric indicating how many users actually clicked on your link and made it over to your intended landing page. For example, if you’re running an A/B test with two different visuals, the ad with the highest CTR will most likely be the one that will convert the most users. Your click-through-rate defines how many users clicked on any desirable link that you are actively measuring.
A digital impression refers to the number of times your content is displayed to a user. It doesn’t matter whether your content was clicked on or not, an impression simply states how many times it was shown to online users. Impressions can be tracked for online ads, social posts, and a plethora of other digital marketing content types.
Link building is often considered one of the top practices a website can focus on in its continuous efforts to rank high on search engines. Link building, or backlinks, is when either you’re linking out to another site, or when another site is linking back to you. One of the best ways to work on your company’s link building is by regularly creating high-quality engaging content that other websites would want to share.
ROI (Return on Investment)
Whenever your company invests in a marketing campaign, it’s important to keep track of your ROI (Return on Investment) to ensure that your ads are producing profits. Typically expressed as a ratio or percentage, your ROI is calculated by subtracting the cost of your campaign from its net profit, then dividing that number by the original campaign cost. ROI is typically one of the most important KPIs a company can focus on.
CTA (Call to Action)
You company’s CTA (Call to Action) should reflect the specific KPI that you’ve chosen. Whether you want users to sign up for your newsletter, download an offer, purchase a product, or take some other form of decisive step, your CTA copy should clearly tell the user what action you want them to follow through with. An effective CTA is usually short, sweet, and to the point, while simultaneously being big, bold, and able to grab user’s attention.
At Destination Marketing, our agency’s omni-channel digital marketing approach and customized digital solutions will turn your leads into customers and your business into an industry leader. They will also increase your traffic, engage and re-engage your leads, and boost your e-commerce sales. With a fully integrated digital strategy and content that converts, our digital marketing agency helps you stand out from the crowd because everything we do is focused on generating prospects for your business.