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Definition of Digital Marketing Terms


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A/B TESTING

A/B TESTING (sometimes called split testing) - is comparing the preference for two versions of a web page or ads to determine which one performs better. The comparison is done by showing the two variants (A and B) of webpages or ads to a target group at the same time and measuring subsequent behavior. The variant that leads to a better conversion rate wins.

BOUNCE RATE

BOUNCE RATE - the percentage of visitors to a particular website who navigate away from the site under ten second or do not take any action on the website (depends on how this is installed). This is analogous to a window shopper who opens a door to a shop but decides not to go in.

CONVERSION

CONVERSION – Within the context of the world wide web, a conversion is a deliberate target or action that a person takes on a particular website, such as checking out selected items, registering for membership, adding an item to the shopping basket or viewing a particular page.

CTR (Click-Through Rate)

CTR (Click-Through Rate) - a metric that attempts to qualify the initial movement of viewers closer to the website. CTR is the total number of clicks that a website has received (e.g. off-site clicks, Likes, event responses and selection of linked references) divided by the number of impressions . This is analogous to a window shopper opening the door to a shop in response to a printed leaflet that they were handed.

FACEBOOK ADS

FACEBOOK ADS – ads that can appear in News Feed on the desktop, News Feed on mobile, and in the right column of Facebook on the desktop. Ad content is sometimes paired with news about social actions that friends have taken, such as clicking Like for a page or an ad. Similarly, friends might also see the ad because of the social actions that another friend has taken in Facebook ads.

GOOGLE ADWORDS

GOOGLE ADWORDS - an advertising service offered by Google to businesses to display ads on the first page of search results within Google’s information network that are related to particular keywords (branded as Google AdWords). The AdWords program enables businesses to set a budget for advertising and only pay when people click the ads.

IMPRESSION

IMPRESSION - The number of times that an advert was viewed. In the 1990’s, this was also known as the Eye-Ball Count as its purpose is to count the number of people who had a chance to see the ad. With a few exceptions, an impression is counted each time an advert can be seen on a viewer’s screen on Facebook, Instagram or the Audience Network. This is analogous to the number of leaflets handout at a street corner to advertise a shop.

ORGANIC

ORGANIC – the number of visitors who do not enter the site in direct response to a specific advertisement. This is analogous to shoppers who enter a store because of general curiosity and not because they have seen the ads. In this study, organic visitors from Google are those who found links to the shop using different keywords than those linked to AdWords. Likewise, Facebook organic visitors have not found the links of Facebook Ads but followed links found on Facebook pages (such as the organization’s home page, or blogs of Facebook members).

PPC (Pay Per Click)

PPC (Pay Per Click) - a business model where the advertiser only pays when ads that actually result in an audience response that can be measured in clicks (such as following a link, registering a Like or posting a comment). Charging a business client only when their customers show interest is a major break with the traditional business model that charged rental for advertisement space.

RACE MODEL

RACE MODEL – an alternative business model to describe the process of converting shoppers into customers. RACE (which stands for Reach, Activate, Convert, Engage). It helps SME manager plan, analyze and manage subsequent digital marketing activities that are needed to build and nurture customer relationships. The key difference is in the last step, RACE assumes that customers will engage with the business as a kind of community, while REAN makes no assumption about the long-term relationship with the customers and thus encourage ongoing nurturing of that relationship.

REAN MODEL

REAN MODEL – a business to describe the process of converting shoppers into customers. REAN (which stands for Reach, Engage, Activate, Nurture) was first coined by Xavier Blanc in 2006. It helps SME manager plan, analyze and manage subsequent digital marketing activities that are needed to build and nurture customer relationships.

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