Marketing Tactics You Should Know

Digital marketing has significantly evolved, becoming a core component of any business strategy. However, the plethora of terminologies used can seem daunting for business owners who are just starting to navigate this field. This writeup aims to demystify the complex jargon and simplify the terms integral to understanding digital marketing.

Understanding these terminologies is crucial, as it empowers you to make informed decisions, strategize more effectively, and ultimately, leverage digital marketing for business growth. Let’s break down these terminologies, understand their importance, and how they can help you ace your digital marketing game.

Basics of Digital Marketing

Digital marketing refers to the advertising and promotion of products or services using digital channels such as search engines, social media, email, and websites. It’s an umbrella term that encompasses various techniques aimed at reaching customers in the digital realm.

Over time, digital marketing has drastically changed the landscape of business, offering a level playing field for both large corporations and small enterprises. As the world continues to embrace digitization, the importance of understanding and efficiently utilizing digital marketing cannot be overstated.

Understanding Digital Marketing Jargon

The world of digital marketing comes with its own distinct language. It’s essential to understand this language to get the most out of your marketing efforts.

The following sections will provide a deep dive into some key terms that every business owner should know, including Cost Per Click (CPC), Cost Per Mille/Thousand (CPM), Return on Advertising Spend (ROAS), Conversion, and Goal Conversions. By familiarizing yourself with these terms, you will be better equipped to interpret data, make informed decisions, and drive your business towards its objectives.

Cost Per Click (CPC)

Cost per Click (CPC), as the name suggests, is the amount an advertiser pays each time a user clicks on their online advertisement. It’s a critical metric to understand as it directly correlates to the financial costs of your marketing efforts. The CPC model is widely used in search engine advertising, especially in platforms such as Google Ads.

CPC is calculated by dividing the total cost of your clicks by the total number of clicks. Optimizing your CPC is essential to ensure that you’re not overspending for each click, which can eventually lead to better profitability. Strategies to optimize CPC include focusing on ad quality, utilizing relevant keywords, and geographic targeting.

Cost Per Mille/Thousand (CPM)

Cost per Mille or Cost per Thousand (CPM) is another important term to understand in digital marketing. It refers to the cost an advertiser pays for one thousand views or impressions of an advertisement. Unlike CPC, where you pay per click, CPM is purely about impressions – how often your ad is seen.

CPM is calculated by dividing the total cost of an advertising campaign by the total number of impressions, then multiplying the result by 1000. Understanding the differences between CPC and CPM can help you determine which pricing model best suits your campaign goals. CPM is often favored for awareness campaigns, where the goal is to be seen by as many people as possible.

Return on Advertising Spend (ROAS)

Return on Advertising Spend (ROAS) is a metric that indicates the efficacy of a digital advertising campaign. ROAS helps online businesses determine whether their advertising costs are driving sufficient revenue.

Calculating ROAS involves dividing the revenue generated by a specific ad by the cost of that ad. It’s an essential metric as it helps you understand the financial effectiveness of your ad campaigns, enabling you to make informed decisions about future marketing strategies.


In the context of digital marketing, a conversion occurs when a user completes a desired action on your website or digital platform. This could range from making a purchase, subscribing to a newsletter, downloading an ebook, or any other action that aligns with your business objectives.

Conversions are the ultimate goal of most digital marketing strategies. They represent a moment when a visitor or lead interacts with your brand in a meaningful way. Understanding the types of conversions, including macro-conversions (like sales) and micro-conversions (like email sign-ups), can help you measure the success of your marketing efforts.

Goal Conversions

Goal conversions take the concept of conversions a step further. These represent specific, measurable actions that directly contribute to your business objectives. Examples of goal conversions may include a set number of new newsletter subscriptions, a specific increase in website traffic, or achieving a sales target.

Setting and measuring goal conversions are essential parts of any successful marketing strategy. They give you clear targets to aim for, provide motivation, and offer tangible metrics for assessing progress. They can also help you identify areas for improvement.

Other Key Digital Marketing Terminologies

While the above terms are critical, there are many more digital marketing terminologies to understand. These include:

  1. Search Engine Optimization (SEO): This refers to the process of optimizing your website to achieve higher rankings in search engine results. Good SEO practices increase your website’s visibility, which can lead to more organic traffic.
  2. Search Engine Marketing (SEM): SEM is a broader term that includes SEO and other search marketing tactics. It involves promoting websites by increasing their visibility in search engine results pages primarily through paid advertising.
  3. Pay-Per-Click (PPC): PPC is a digital advertising model where advertisers pay a fee each time one of their ads is clicked. It’s a way of buying visits to your site, rather than attempting to earn those visits organically.
  4. Key Performance Indicator (KPI): KPIs are measurable values that demonstrate how effectively a company is achieving key business objectives. They vary between companies and industries, depending on their priorities.
  5. Bounce Rate: This is a metric that measures the percentage of visitors who enter your website and then leave (“bounce”) rather than continuing to view other pages within the same site. A high bounce rate generally indicates that site entrance pages aren’t relevant to your visitors.

Each of these terms brings additional depth to your understanding of digital marketing, empowering you to make more informed strategic decisions.

The Role of Digital Marketing in Business Success

Understanding and applying these digital marketing terms can lead to better marketing strategies and, ultimately, business success. For example, companies that understand and effectively manage their CPC and CPM can run more cost-effective campaigns, improving their bottom line.

In the digital era, every business, irrespective of its size or industry, can leverage these terms to better understand their customers, market more effectively, and achieve their business objectives. Successful digital marketing strategies aren’t simply about knowing these terms, but understanding how to utilize them for the growth and success of your business.

Wrapping up

Understanding digital marketing terminologies is an integral part of running successful marketing campaigns. These terms aren’t just jargon; they are tools that can help you strategize, analyze, and optimize your marketing efforts.

By demystifying these terms, we hope that you, as a business owner, are now better equipped to navigate the complex yet exciting world of digital marketing. We encourage you to leverage this knowledge, to make informed decisions, and to transform your digital marketing strategies into powerful engines for growth.

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References & Additional Resources

For further reading and a deeper understanding of digital marketing terms, consider resources like the Google Digital Marketing Course, HubSpot’s Digital Marketing Resources, and MOZ’s Beginner’s Guide to SEO. These platforms offer valuable insights and practical applications for all the terms discussed in this blog.


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