Glossary of terms

Glossary of terms

In digital marketing, as well as in many other areas, there are several specific terms and concepts. Know about them it’s quite important in order to comprehend the operation of this particular world and every single part of it.

That’s why we thought in some concepts that may help us, because in some point, not today or tomorrow, but someday, we will have to face it and it’s important to know what it means.

Some digital marketing concepts

Affiliate Marketing: is a way to commercialize products, where the affiliates made the media campaigns and leads or sales, with an interest to receive a profitable commission for their job. That means, the company shares a product in an affiliate network where the affiliates will divulge it and receive a payment for every product purchased through them.

Blog: is a web page, composed of posts and updated frequently, with the objective of maintaining a chronological post with a certain regularity. Blogs are a great way to attract users, through content of value to them, with the ultimate goal of converting leads into sales.

Buyer persona: is a tool that allows us to define in detail our target customers, thus generating a specific profile of it that represents a segment of customers and potential customers. In defining the buyer persona, we will consider many relevant aspects to carry out promotions and promotional materials completely adapted to those characteristics collected. In order to define a segment, demographic data, communication indicators, needs, tastes and interests, among others. With these determined groups, the targeting of ads and advertising pieces will be much more efficient.

CAC: Customer Acquisition Cost. Is the calculation made to know what the marketing cost and the action of getting each customer is. It’s considered the cost of the campaign divided by the number of customers achieved. Knowing CAC is very important to know if the marketing campaigns launched were profitable and generated the expected result.

CPA: Cost per Action. Is a model of commission where the affiliate earns every time an action is made, with a sale or a registration that means a conversion. This is, certainly, one of the most common commissioning model. CPV (Cost Per View) and CPD (Cost Per Download) models are the same as the CPA. This option can be interpreted as the maximum objective because the affiliate will receive its commission only if a person complete the final objective of the campaign.

This is an interesting tool for the company too, because they can identify the cost associated to an action that they want the customers take. For that reason, it’s very important to have the specific measurement tools to obtain the expected data.

CPC: Cost per Click. An affiliate receives the commission amount for each click that people make on the ads that the brand advertises. That is, every click that a person makes on the ad and this leads to the advertised brand site. It’s one of the most common ways to monetize an ad.

One more metric for the company to know the cost of a campaign and thus measure the result, which allows you to understand the public’s interest in the product. In this case, the calculation made is the total cost of the campaign divided by the number of clicks obtained.

CPM: Cost per Mille. Is the amount the affiliate receives, as payment, for every thousand views an ad has. It counts as a view every time a sponsored link is displayed, even if the person has not clicked on it. It is a method widely used and the main objective is the positioning of the brand, because its focus is to show the advertisement on the Internet, regardless of the amount of clicks.

As you see from the CPM definition, it will be of real importance that the site has a lot of traffic. This is the way the ad will be seen more often.

CRM: Customer Relationship Management. Is a term used to offer solutions to a good relationship management with customers, including the storage of information and data.

CTR: Click Through Rate. It’s a percentage indicator that serves to measure the relevance of the ads to the particular audience. It’s a structured way to improve a website’s performance and thus increase traffic on it. To have the value in percentage, this is the calculation to be made: number of clicks divided by the number of impressions and then multiplied by 100.

This simple calculation is very important because it represents the quality of the ads. The higher CTR means that people’s interest in published information is greater.

CPV: Cost per View. This marketing tool is mainly meant for videos, since it is defined as the value that the advertiser is willing to pay, every time someone watches a video. So it differs a lot from other techniques, since what counts here is the play action in the video. It means that neither clicks nor people who enter a page will be a reason for payment to the affiliate, but only the fact that potential customers watch the video posted.

CPL: Cost per Lead. This tool measures how the affiliate receives commission for each time a user, coming from their traffic, make the registration in the mailing list or any other stipulated form. Reason why it’s especially used by affiliates, since it is understood that the main objective of it is to recruit records or sales.

Conversion: is when a user, likely future customer, performs a certain action that the company wants. The possible actions are varied, from filling out a form or registering to receive a newsletter, until making a purchase itself.

CTA: Call To Action. Is literally a call to action, that is, something that motivates the user to do some determined action expected by the company. Can be a button, a banner or a text with links. The feature of CTAs is the message of encouragement, so verbs are usually used in the imperative. Click here, learn more, seize this opportunity, are some examples of the most used.

e-book: the literal meaning is electronic book, but applied to digital marketing is an informative-educational material on some specific subject. They usually have a large extension so you will not find them as blogs posts, but in PDF to download. E-books are prime tools for getting leads.

Guest post: is a blog post written by an invited person, not related to the blog as their regular authors. These kind of articles are usually written by someone of the company involved in the subject who brings relevant information to the blog’s readers.

Heading tags: is a resource used in HTML programming to organize heading and subheadings, defined by <hn>, with “n” being a number between 1 and 6. The heading h1 is the most important of all tags and Google uses it to positioning the site among the results in a search.

Hyperlink: is a kind of content that you can click to redirect to another page, website or even other section of the same page. Hyperlink can be used in texts, relevant phrases in a post, button or images.

Lead: is every person who have shared its personal data through a conversion form. This person it’s a potential client to the brand, because was interested enough to bring that info. The first step of every site or blog is to gain traffic (visitors), the second step is to convert those visitors into leads, and those leads into customers.

External link: a link is external when redirects to pages of other domain.

Internal link: a link is internal when redirects to other pages of the same domain.

Content Marketing: is a part of the well-known Inbound Marketing and its based in the creation of content to gain the interest of potential consumers to our business.

Meta description: it’s a brief description about a page that appears in the search results. The aim of this description is to summarize the content of the page by using keywords resulting attractive to visitors.

Meta title: is the title of a page or post visible at the top of the page tab. It’s very important to SEO, because must use the correct keywords in order to help its positioning.

Remarketing: is to show ads after users visit a site. A clear example of this is the fact that, once a person searches for certain information, ads of related products will appear in banners, from any other site that the person visits.

ROI: Return on Investment is the name given to the metric that determines the relation between the money gain and the money invested in a marketing project.

These are some of the concepts that you may find in the Digital Marketing area. If you want to learn more about how this professional area works, follow our blog posts and social networks.

Therefore, you already have many interesting tools to venture into affiliation and start recognizing the product to be released. Good job!

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