Online Marketing Terms
Ever been confused by the plethora of Online Marketing terms? Just working out a strategy is hard enough never mind knowing the difference between EPN and CPA.
I’ve created an Online Marketing Reference Guide for you to help you make the most informed decisions that will lead to the best results for you. Feel free to bookmark this page and refer to it when needed. I will keep this list updated so it will continue to be a valuable resource for you.
And if there’s a term missing you want to understand then please let me know so that I can include it.
Motorway Mindset Marketing: A specific method based on using 3 sets of “behaviour or mindsets” to create 3 different “lanes” of leads. This is designed increase your reach to 80% more potential customers and decrease your cost of advertising.
Cost per Lead (CPL): Cost per Lead refers to the amount or price you pay per “sign up” or per lead generated in a particular campaign or advertising source that is being evaluated.
If you spent £100 and received 10 leads, then you have a CPL of £10 per lead. You may look at your CPL for just one source (Facebook advertising) and also for a bigger medium such as paid search in general.
Although CPL is important to look at, what is more important is the quality of the leads that are coming in. Are the leads converting to sales? Are the leads the sort of customer you are looking to work with? If not, there are lots of ways to address this.
Cost per Click (CPC): Cost per Click refers to how much you pay for an individual ad click. The way this is determined differs based on every platform. Advertisers can use different techniques to decrease their CPC. Many techniques involve writing more compelling ad copy which resonates more with the audience and leads to a higher Click-through Rate (CTR). Most ad platforms will give you a lower CPC when you have a higher CTR.
Cost per Acquisition (CPA): Take your total revenue over a period (year/month) and divide by the number of customers you had during the same period.
Conversion Rate: In internet marketing this refers to the number of users who “convert” out of the total number of users who visited. An example of a conversion rate from an ad would be to look at how many people filled out say an email optin form (which would be defined as ‘the conversion’) vs. clicked the ad.
Click-through Rate (CTR): This refers to the number of people that clicked on an ad vs. saw the ad. Clicks ÷ Impressions = CTR.
Internet Marketing Funnel: An internet marketing funnel is a marketing strategy where the goal is to develop a relationship with the prospect by setting up a funnel. All new potential leads are poured into the top of the funnel, with the aim of ‘converting’ some to drop out of the bottom.
The techniques you use to convert as many of these leads as possible before they leak from the funnel are based on the MMM formula where you provide them with relevant valuable information about you and your product based on their mindset and your knowledge of their pain point. The goal is that they become a customer at the end of the funnel.
Web Analytics: A program or software that analyses and measures the activity on a website for the purposes of understanding the visitors, optimizing the pages, and creating better content. An example of this is Google Analytics.
Content Management System (CMS): A web application that helps users develop, add and edit website content. These system allow users to manage content, add new content and also store content such as videos, articles and other digital content.
Bounce Rate: The number of people that click a page and leave immediately after visiting just one page. Online marketers strive to have as low a bounce rate as possible. Low bounce rates usually mean the visitor is interested in the content of the site.
Landing Page: A single web page, separate from the main body of your website that has a single goal of capturing information about the visitor for sales purposes. It usually provides a form for the visitor to fill out and is part of a marketing funnel.
Content Upgrade: A content upgrade involves allowing a visitor to opt-in to receive a free relevant resource in return for their email. They are then added to an email marketing campaign.
Lead Magnet: An extremely enticing piece of content or a free resource that entices visitors to give their information (usually an email address) in order to receive the content.
Call to Action (CTA): The call to action in advertising refers to content that provokes the viewer to take action such as “view now,” “start now,” “buy now” or “learn more now.”
Retargeting: Retargeting is a extremely powerful form of marketing where a piece of code is installed on your website which allows you to create cookies (small pieces of data sent from a website and stored in the visitor’s browser). These cookies then allow you to create remarketing lists and advertise to visitors based on their past visits to their website.
Retargeting can help increase conversions, but it can’t drive people to your site. Your best chance of success is using one or more tools to drive traffic and retargeting to get the most out of that traffic. Remarketing campaigns usually have lower CPCs and higher conversion rates.
Customer Lifetime Value (CLTV): Customer Lifetime Value refers to the total value of a customer over the entire course of their relationship with a business. A business can increase revenue by marketing to current customers and increasing their CLTV.
Email List: The number of subscribers who opt in for your emails. This should not be confused with a Contact List you send emails to.
Email Deliverability: When sending out an email campaign the “email deliverability” refers to looking at the successful number of emails that were not sent into “spam” “bulk email” or other categories which lead to them not being properly delivered and opened by a potential lead.
Earnings Per Name (EPN): This is a measure of the revenue you earn from each email subscriber per month. Sometimes also known as Value per Subscriber. It’s difficult to get this kind of data until you have c500 + subscribers. Once you have this figure you can work out your ROI from your advertising spend. The Industry average is $1-3/person/month.