The world of marketing, especially digital marketing can be complex, with new platforms, trends and buzzwords popping up constantly. We’ve avoided works like ninja, growth hackers and jedi in this post. So many jazzy terms in marketing right now!
However, this is all just part of the job; fail to familiarise yourself with the most common and effective tools, metrics and payment options at your disposal, and you could easily miss out on valuable marketing opportunities.
List of the best-known marketing acronyms
If you work with us as a client, we’ll be using a number of these during our slack chats and within our marketing performance reports.
To help you out, here are a few of the most common marketing acronyms that any good marketer needs to memorise!
Conversion Rate (CVR/ CR)
Marketing initiatives are designed to make customers perform certain actions, such as ordering products or subscribing to mailing lists. A ‘conversion rate’ is the percentage of users who take a desired action. It is often used by marketers to measure the success of their work, allowing them to figure out what customers respond to best.
For example, you might get a higher CVR for banner advertisements than for popup ads, or your customers might respond better if you advertise in a certain location.
Find out more about CVR and what does CVR mean here.
Search Engine Optimisation (SEO)
Websites that appear in results on search engines such as Google, Bing or Yahoo are more likely to get high user traffic. ‘Search engine optimization’ is the act of managing a website to make it more like to appear in searches for relevant ‘keywords’. For example, a local decorating company might want to rank for keywords like ‘painter’ or ‘wallpapering’, as well as its local area.
In order to do this, a website needs to be able to meet the needs of users searching for these keywords. This will usually be done with relevant content and features, as well as a strong user experience (UX) to make everything easier to navigate. In order to rank highly, websites also require backlinks, and many also rely on having a solid social media presence.
Remember, SEO can be competitive, but also highly lucrative!
Find out more about SEO and what does SEO mean here.
User Experience (UX)
The journey that a user undertakes with a product or service is known as the ‘user experience (UX)’ or customer experience. It is important to optimize this as much as possible; not only will this make customers more likely to recommend your offering to others, but it will also keep them coming back.
For example, a website should be easy to navigate, with well-polished functionality and reliable customer service. Design is also a key factor, as this will help your offering make a good impression and draw people in. Having an optimized user experience will be one of the best ways to build up a reputation for your offering.
Find out more about UX and what does UX mean here.
Search Engine Results Pages (SERP)
When you use a search engine, the results are displayed across several pages. These are the ‘search engine results pages’, or ‘SERP’. This is an essential element of SEO: a marketer will find the most important ‘keywords’ relating to their offering, and then try to make it so that their website appears early on in the SERP.
Keep in mind that while it is possible to pay for a page to rank highly in the SERP, it will be marked as an ‘Ad’. If a page is ranking organically (without having to pay), users may have greater confidence that it can deliver what they need.
Find out more about search and what does SERP mean here.
Pay Per Click (PPC)
When it comes to online advertising, there are a number of different options to choose from. With a ‘pay-per-click (PPC)’ advertisement, a business will pay a publisher every time a user clicks on an ad. This could be on a search engine such as Google, a website (or network of websites), or even a social media platform. These advertisements are usually called ‘sponsored ads’ or ‘sponsored links’.
With search engines, advertisers will usually ‘bid’ on keywords in order to have advertisements rank highly. As such, the prices can often fluctuate. For commercial searches (where users are looking to make purchases), the cost of bidding can be higher, but so are the rewards.
In contrast, advertisements on websites (such as banner ads) will usually have fixed costs per click. These ads will typically be displayed when a customer searches for keywords that the advertiser has specified, or on a page with relevant content.
Find out more about PPC and what does PPC mean here.
Social Media Marketing (SMM)
These days, it seems that virtually everyone uses social media platforms such as Facebook, Twitter and Instagram. As such, these platforms offer huge audiences for advertisers to take advantage of. Advertising products or services via social media or social networks is known as ‘social media marketing (SMM)’.
A company might utilize SMM to let customers know information like locations, opening times or contact details. It can also be a useful tool for customer service, as well as interacting with the media.
Platforms like Facebook and Twitter make SMM easier by allowing advertisers to target users based on location, demographics and interests. Because of this, SMM is often much more focused and niche than traditional marketing. These platforms also provide functions that help advertisers track performance metrics such as reach, customer response rates or return on investment (ROI).
Find out more about SMM and what does SMM mean here.
Click-Through Rate (CTR)
A big part of online advertising is judging the success of your work. The ratio of customers who click on a link compared to how many simply view an email, advertisement or web page is known as a ‘click-through rate (CTR)’.
To optimize your CTR, you will need to make sure that your ad corresponds to the needs of users. For example, an ad on a website which corresponds with the interests of your chosen customer demographic would be more likely to have a high CTR.
Find out more about click-through rates and what does CTR mean here.
Content Management System (CMS)
Publishing content is a big part of getting recognized online. A company might choose to regularly publish articles for the sake of SEO, or a blogger might want to create a permanent home for their articles.
A ‘content management system (CMS)’ is a platform or application designed for managing web content. Examples like WordPress allow users to create, store, edit and publish content, as well as create well-designed platforms for readers.
Crucially for businesses, multiple user roles can be assigned to these platforms. For example, certain employees might be designated as ‘authors’, while others may have further privileges as ‘editors’ or ‘admins’.
Find out more about content management solutions and what does CMS mean here.
Call To Action (CTA)
When creating an advertisement, there are certain ‘actions’ which a marketer will want customers to take. A ‘call to action (CTA)’ refers to anything that is designed to encourage such a response.
This could be something simple, such as a link which reads ‘find out more’ or ‘contact us today’. Stronger CTAs, which are more likely to prompt quick responses, often include features like limited-time offers and discounts. CTAs can also be soft, such as encouraging customers to watch videos.
Find out more about UX design and what does CTA mean here.
Conversion Rate Optimization (CRO)
When you create a website, you will want your users to take certain actions. CRO is usually used with landing page metrics and based on customer interactions and conversions. This can involve ‘macro’ and ‘micro’ conversions. A macro conversion might mean having a customer make a purchase or request for a quote, while a micro-conversion could be creating a user account or subscribing to a mailing list.
The act of increasing the number of website visitors who take the desired action is known as ‘conversion rate optimization (CRO)’. This involves making sure that a website can fulfil the needs and desires of users, whether in terms of design, functionality or even simply the quality of its offering.
Google Analytics (GA)
Just in case you haven’t heard, Google is easily one of the biggest names in the digital world. However, it is more than just a search engine; Google also offers a number of tools to help marketers and webmasters judge the success of their online activity.
One of the most popular is ‘Google Analytics (GA)’. This tool can be used to track valuable metrics for a web page, such as bounce rates, pages per session, impressions and session durations. More advanced tools can be used to identify why pages are performing poorly, as well as user demographics such as location. GA even offers e-commerce functions, such as tracking site transactions and revenue.
Find out more about reporting and what does GA mean here.
Cost Per Lead (CPL)
When advertising online, it is not uncommon for marketers to pay for ads based on ‘cost per lead (CPL)’. A ‘lead’ or ‘qualified lead’ refers to a customer who has signed up after viewing an ad, providing the marketer in question with their contact details.
Lead generation is one of the most important activities for marketers, regardless of whether they are advertising on websites, search engines, email campaigns or anything else. Generally speaking, a ‘lead’ is far more likely to result in a sale than clicks or impressions. As such, many companies prefer using CPL, rather than cost per click (CPC). With CPL, the advertiser will only need to make a payment when they get a definite sign-up.
Cost to Acquire Customer (CAC)
Unfortunate as it may be, most customers are hesitant to part with their money. Marketers need to invest in convincing customers to invest in their products and services. The price of doing so is known as the ‘cost to acquire customer (CAC)’.
Part of the reason why CAC is such a valuable metric is that it shows whether the cost of acquiring a customer is worth the potential returns. If it is not economic for a company to invest resources in certain customers, it may choose to shift its focus elsewhere.
Cost Per Acquisition (CPA)
‘Cost per acquisition (CPA)’, also known as ‘cost per action’, refers to when an advertiser pays for a specific ‘acquisition’. This could refer to customers clicking on an advertisement, signing up to a newsletter, filling in a form or even making purchases.
This can be a preferred payment model for advertisers, as they will only need to make payments when users make specific actions. As such, it can take a great deal of risk out of the equation.
Public Relations for Search Engine Optimization (PR4SEO)
These days, PR and SEO go hand in hand. While PR is all about raising the profile of a business, product or service, SEO is used to make sure that it can appear prominently on popular search engines. Both form a key part of raising awareness, and so they will often be used together in the same marketing campaign.
For example, a company could choose to earn valuable backlinks and referrals for a website by sending out press releases to popular publications and bloggers. In this case, the company’s PR team would handle making contact and ensuring that links are going to the right page, as chosen by the SEO team. The same company would also ensure that PR and SEO initiatives share the same message, as well as valuable assets like videos, quotes and infographics.
Above The Line (ATL)
‘Above the line (ATL)’ advertising/ marketing is characterized as being non-targeted, with a wide reach of potential customers rather than a specific group. The purpose of ATL is typically to raise awareness of a company, product or service, rather than focusing solely on conversions.
Common examples of ATL advertising includes ads found on the radio, popular TV channels or even platforms like Youtube. Advertising to such a wide audience can be a fundamental part of building up a brand name.
Customer Lifetime Value (CLV or LTV)
In virtually any business model, the best customers are repeat customers who can be expected to invest in a product or service in the long term. A ‘customer lifetime value (CLV)’, also known as LTV, is the prediction of how much net profit the future relationship with a customer can be expected to generate.
While a high CLV is encouraging, you should keep in mind that no metrics can predict the future with 100% accuracy. For example, the current cash flow generated by a customer may not be consistent over the coming years.
That said, using CLV to estimate long term profits is certainly advantageous. For example, companies often use the CLV metric to set a limit on how much they are willing to spend on acquiring new customers or even placating existing clients.
Cost Per View (CPV)
These days, videos play an important part in advertising campaigns. Not only can they help to inform customers about products or services, but a business may also use videos to build up its brand identity.
‘Cost per view (CPV)’ refers to a bidding method. In essence, a marketer will pay for every ‘view’ a video generates. In setting a CPV, a marketer will tell Google how much they are willing to pay for every view a video earns.
A ‘view’ will typically need to last around 30 seconds in order to count towards this metric (or less, depending on the overall length of the video). Alternatively, a ‘view’ might only count if a viewer clicks on an associated call to action (CTA).
Return On Investment (ROI)
In business, you need to spend money to make money! This is normally tracked in date and usually looks at this month versus the previous month.
‘Return on investment (ROI)’ is a metric which can be used to judge the efficiency of an investment. It is calculated by dividing return (the benefit of investment) by cost, with the result typically being presented as a ratio or percentage.
The simplicity of ROI makes it one of the most commonly tracked performance metrics. It can be applied to a variety of ‘investments’, such as the amount spent on marketing or new service features. Marketers will usually compare the ROIs of different investments, as this can be an excellent way to judge which methods generate the most profits.
Find out more about reporting and what does ROI mean here.
Return On Marketing Investment (ROMI)
As diverse and exciting as marketing can be, it is ultimately a tool for generating profit. A campaign’s ‘return on marketing investment (ROMI)’ refers to the profit which can be directly attributed to marketing spending, divided by the amount of money ‘risked’ on marketing.
Putting it simply, a positive ROMI indicates that your marketing efforts have been successful, with your profits justifying the investment. Measuring ROMI will be an important part of judging your marketing efforts and finding out which methods are most likely to generate profits. Needless to say, ROMI is one of the most important marketing metrics out there.