What are the most important words and phrases in Digital Marketing?

Executive summary

In this article, we initially explained the definition of Digital marketing in a simple word, and specified all headers to the various names and phrases are used in Digital marketing words. 

Specially, we put our focus to identify for you the major features of KPI, the reasons that a website appears more frequently in a search result, what is the main occasion of using an impression, and how to calculate the metrics extracted by digital marketing platforms such as Google Ad Word, Facebook page, Instagram, Email, Whats-app, and other popular ones.

Preface

In the world today, the dominance of the world wide web in every aspect of people’s life has redefined the conventional methods used to be relevant replaced by something more functional.

 The internet has brought massive accessibility for business persons to set up their plan, execute and run completely in the digital world. In the world of business, marketing managers migrated their ideas and focus on the digital world and the concept of Digital marketing born.

 What is Digital Marketing?

In a simple word, it’s the activities of advertising a particular product or service through the internet via different tools and applications, that lead to sales. Digital marketing is the art of persuading people, in particular those who are not interested in your product or service to try your offer and pay for it. Perhaps, the number of ways that helps digital marketers bringing customers to your so-called “online store” is infinite.

 Apart from that, any digital marketer who willing to be influential in his or her field and derive the market potential particular product or service should be aware of and acknowledged of the phrases, abbreviations, and ratios commonly used in this profession. Obviously, knowing them distinguishes a novice from an expert one.

ROI

Return of investment(ROI) is a metric that is used for calculating the effectiveness of the money spent on a specific campaign. In detail, with a simple equation, a digital marketer is able to figure out that an advertising campaign ROI is positive or negative.

Here is the formula:

ROI = total sales- the cost of goods/advertising investment

For example, if you adjust the budget for example 1000 USD for your advertising campaign, and your total sales 5000 USD, while the product costs you 4000 USD, your ROI will be as follows:

5000-4000= 1000

1000/1000=1 

 ROI=1

This means that your investment in advertising has brought you the equal profit as your budget was, hence this result is not satisfying at all, and it will put the company future and your position at a serious risk.

KPI

Key performance indicators are a series of metrics used to identify the quality and results in your marketing activities. There are some popular KPI that automatically exists in some advertising portals such as Facebook pages insight, google ad word,  and so on.

Here are some features that distinguish these KPI

• Qualitative indicators: are those that are not available by numbers
• Quantitative Indicators: are those that are available by numbers
• Leading indicators: which anticipates the result of an activity
• Process indicators: It illustrates the effectiveness or productivity of an activity
• Directional Indicators: its uses for showing whether a company is improving or drawing back

Choosing the right KPI is a key point for correctly analyzing your company movements and activities in different sections, from advertising to production, and could be an actual game-changing for a business or a marketing manager.

CPC

Cost Per Click defines as the budget you pay for each click done on your advertising content, poster, or link. The calculation of CPC is a sort of KPI and related to ROI. Once you decided to advertise on Facebook or Ad word Google, you need to consider these two questions:

•        Firstly, what types of attention you are seeking
•        How much the money you intend to spend on a click 

In Google Ad Word, the Cost Per Click is correlated to the ultimate bid of yours, and it is mostly less or equal to it. Google Ad Word determines the Cost Per Click of any advertisement by considering your advertising and your closest competitor.

Conversion

Conversion, as it sounds, is referring to an activity that turns a user who is visiting your website, interacting with your advertising post or article, to purchasing or calling your Call center.

There are plenty of examples that you may find Conversion act through your surfing on the internet. 

For example, if you are going to purchase a product online, but suddenly cancel the payment, the application or website tries to draw your attention by emailing you, or giving you an appealing offer that intrigues your buying crave and your purchase. This is a simple example of conversion.

 Another example is that you are confronted by an advertising poster, hence you tend to scroll it down, but a pop-up message appears and offers you that if you call or ask for inquiry, you would get a certain discount. This will attract you to click on the call.

To measure the conversion percentage, you need to divide the total conversion, to total impression. Kindly pay attention to the example below

If your impression or interaction number is 2000, and your conversion is 30, the equation is as follows:

30/2000: 0.015%

Every digital marketer should pay a serious the attention that conversion rate is highly essential and its part of KPI, which gives you a valuable ratio of your advertising success.

In the advertising world, great companies have a high Conversion rate number close to 11%, followed by one-fifth of successful companies’ conversion rates stand at 4.7%.

Impression

It is referring to an advertising poster, contents, and ets, that draws the attention of the user or audience, which is called impression or interaction. Simply, every time a social media user, or an internet surfer sees your post, he or she impressed or interacts with the post. In the digital marketing world, CPI or Cost Per Impression is ideal for companies and start-ups seeking for spreading their brand awareness.

SEO

Search Engine Optimisation is an activity to make your webpage simple and easy to search and find. SEO is an integral act that makes other digital marketing features showcase themselves.

There are plenty of ways to empower your SEO, in which Posting regularly, Using Meta Data, relevant contents, and contexts, putting correct tags, anchoring, make the website efficient on architecture, mobile-friendly and other examples that are effective for making your website appeared in most of the search locally or internationally.

 In SEO Marketing, the Digital Marketer should have wide research about the common keywords searched for a specific product, service or simple questions and after gathering the keywords, seize them in the contents and advertising posts abundantly. As an instance, for a bakery website, the keywords might be, bread, pastry, wheat, flour, French toast, sweet, shop, chocolate, vanilla, and other useful keywords that could increase the chance of appearing your webpage by searching “how to bake a French toast?