We’ve talked a lot about different aspects of digital marketing that you need to know to be one of the pros. Including, but not limited to keyword match types, the different Google Adwords platforms, and more.
There are a few basic abbreviations that everyone involved in digital marketing should know. Even if you do not run a digital marketing campaign yourself, it is still important to understand this terminology so that you can communicate with those who are running the campaigns.
Impression – A single instance of an ad appearing to a user
Click – When a user clicks on the ad
Conversion – A single instance of the completion of whatever action the advertiser wants the user to take; examples include purchases, sign-ups or leads
CPC – Cost per click – the amount the advertiser pays per click on the ad; is equivalent to cost/clicks
CTR – Click Through Rate – the percentage of users who see an ad that click on it; is equivalent to clicks/impressions
CVR – Conversion Rate – generally defined as the percentage of users who click on the ad who then complete a conversion; is equivalent to conversions/clicks; May also be defined as the percentage of users who see the ad who then complete a conversion, which would be equivalent to conversions/impressions
CPA – Cost Per Acquisition – the cost to acquire a customer; is equivalent to cost/acquisitions
Cost Per Conversion – the cost per conversion; is equivalent to cost/conversions
CPM – Cost Per Thousand Impressions – the cost per thousand impressions of an ad; a common metric and pricing system for non-CPC digital advertising, such as display advertising
ROI – Return on Investment – How much received per dollar spent; is equivalent to revenue/cost
Position – The position on the page the ad shows up in; A position of 1 indicates an ad is in the top position on the page. A position of 10 or lower will not show up on the first page. A position of 4 or lower will not show up above the organic results.
