Online Marketing Glossary
Not sure about the difference between ROI and LTV? Looking for ways to boost your CTR and lower your CPC while maintaining your KPIs? Demystify the jargon & spoon up a bowlful of online marketing alphabet soup with this handy glossary. New terms added regularly.
Online Marketing Terms, Explained
Example: You run an ad campaign that costs $1 per click. Of the visitors who click-through on your ad, 10% go on to become a monetized customer. The acquisition cost for this ad would then be $10 – you have to pay for 10 clicks in order to get 1 paying customer. If what you're selling costs more than $10, congratulations! If not, it's time to rework your ad campaigns for lower costs per click and/or conversion rates.
Example: On your website, you have a form that encourages people to sign up for your sales emails. The goal is email signups. You get 100,000 visitors in one month. Of those, 14,487 sign up for your emails.
Your conversion rate is 14.49%
Example: You spend $1.74 for 87 clicks. Your CPC is $0.02.
Example: Your ad is viewed 10,000 times and is clicked on 3847 times. Your CTR is 38.47%.
A high CTR may mean that your ad is very interesting. However, for an ad campaign to be truly successful, it must generate sales and not just clicks.