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Definitions on Advertising

Marketing can be a complex field, and we understand that sometimes it's hard to keep up with all the jargon. That's why we've curated a comprehensive collection of the most commonly used marketing terms and concepts. Have a definition recommendation? Send us a note.

Definitions

A

Account Based Marketing (ABM)
Intro
Account Based Marketing (ABM) is a strategic approach to marketing that focuses on engaging with high-value accounts and customers. Unlike traditional marketing methods that aim to reach as many people as possible, ABM is all about targeting specific, high-value accounts and tailoring your marketing efforts to them. Read more about Account Based Marketing (ABM)

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Affiliate Marketing
Intro
Affiliate marketing is a type of performance-based marketing where an advertiser pays a commission to affiliates for promoting their products. The affiliate earns money by promoting the advertiser's products and driving sales through their unique affiliate link. This link contains a code that tracks sales and commissions, so the affiliate can receive payment for their efforts. Read more about Affiliate Marketing

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C

ClickThrough Rate (CTR)
Intro
Clickthrough rate (CTR) is a measure of the effectiveness of an online advertisement or email campaign. It is calculated by dividing the number of clicks on the ad or email by the number of times it is shown (impressions), expressed as a percentage. Read more about ClickThrough Rate (CTR)

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Comparative Advertising
Intro
Comparative advertising is a type of advertising that directly compares one brand's products or services to those of another brand. This can be done through a variety of methods, such as showing the two products side by side and highlighting the differences, or by directly mentioning the other brand in the ad. Comparative advertising is often used to demonstrate how a particular product or service is superior to a competitor's offering, and is a common tactic in highly competitive markets. It can be an effective way to differentiate a brand and persuade consumers to choose it over others. However, it can also be controversial if the comparisons are misleading or inaccurate. Read more about Comparative Advertising

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Conversion Path
Intro
A conversion path is the sequence of steps that a consumer takes before completing a desired action, such as making a purchase or signing up for a newsletter. In the context of online marketing, a conversion path typically begins with a consumer seeing an advertisement or coming across a website, and ends with them completing a specific goal, such as adding an item to their cart or submitting a contact form. The conversion path can be used to identify any bottlenecks or obstacles that may be preventing consumers from completing the desired action, and can help marketers optimize their website or advertising strategy to improve the likelihood of conversion. Read more about Conversion Path

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Conversion Rate
Intro
The conversion rate is a measure of the percentage of visitors to a website or other online platform who take a desired action, such as making a purchase or signing up for a newsletter. It is calculated by dividing the number of conversions (or completed actions) by the total number of visitors, and is typically expressed as a percentage. For example, if a website receives 100 visitors and 20 of them make a purchase, the conversion rate would be 20%, indicating that 20 out of every 100 visitors made a purchase. Conversion rate is an important metric for measuring the effectiveness of a website or marketing campaign, as it provides insight into how well the website or campaign is able to persuade visitors to take a desired action. Read more about Conversion Rate

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Cost Per Acquisition (CPA)
Intro
Cost Per Acquisition (CPA) is a financial metric that measures the cost of acquiring a customer or converting a sale. In digital marketing, CPA is often used to evaluate the effectiveness of various marketing campaigns, such as pay-per-click (PPC) advertising or affiliate marketing. Read more about Cost Per Acquisition (CPA)

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Cost Per Click (CPC)
Intro
Cost per click (CPC) is a pricing model used in online advertising, where the advertiser pays a set amount each time their ad is clicked. Read more about Cost Per Click (CPC)

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Cost Per Mille (CPM)
Intro
Cost Per Mille (CPM) is a financial metric that measures the cost of reaching 1,000 people with an online ad. It is commonly used in digital advertising, particularly in display and social media advertising. Read more about Cost Per Mille (CPM)

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D

Demand-Side Platform (DSP)
Intro
A DSP is a software platform that allows businesses to manage multiple ad campaigns across various networks and exchanges, with the goal of achieving maximum efficiency and results. By using a DSP, advertisers can bid on and purchase ad impressions in real-time, allowing them to reach their target audience at the right place and time. Read more about Demand-Side Platform (DSP)

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Demographics
Intro
In marketing, demographics refer to the statistical characteristics of a population, such as age, gender, income, education level, and geographic location. These characteristics are used to group individuals into specific categories, which can be useful for identifying potential customers and understanding their needs and preferences. Demographics are often used in market research and targeting, as they provide valuable insights into the makeup of a particular market and can help companies tailor their products and marketing messages to specific groups of consumers. Read more about Demographics

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Direct Marketing
Intro
Direct marketing is a form of advertising where businesses communicate directly with potential customers through a variety of channels, such as email, text messages, social media, websites, and phone calls. This type of marketing is designed to be personalized and targeted to individual customers, with the goal of generating a direct response or action from the recipient. Unlike more general forms of advertising, such as television or print ads, direct marketing is designed to be highly specific and targeted to a specific group of customers. This allows businesses to target their marketing efforts and measure the effectiveness of their campaigns more accurately. Read more about Direct Marketing

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Display Advertising
Intro
Display advertising is a form of online advertising that uses images and text to promote a business's products or services. Display ads can appear on a variety of websites and platforms, including social media, news sites, and blogs. Read more about Display Advertising

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E

Engagement Rate
Intro
Engagement rate is a metric that is used to measure the level of interaction and involvement that a marketing campaign or piece of content is able to generate from its target audience. It is typically calculated by dividing the number of likes, comments, shares, or other types of interactions by the number of followers or impressions, and then multiplying that number by 100 to express it as a percentage. Read more about Engagement Rate

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I

Ideal Customer Profile (ICP)
Intro
In the world of marketing and sales, the ability to effectively target your audience is crucial to success. The ideal customer profile, or ICP, is a comprehensive understanding of your ideal customer that is used to guide your marketing and sales efforts. This profile includes information such as demographics, behaviors, motivations, and goals, allowing you to tailor your messages and offerings to better resonate with your target audience. Read more about Ideal Customer Profile (ICP)

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K

Key Performance Indicator (KPI)
Intro
Key Performance Indicators (KPIs) are metrics used to measure the success of a business or a specific aspect of its operations. They are essential tools for decision making, as they provide insights into the health of a business and help identify areas for improvement. Read more about Key Performance Indicator (KPI)

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P

Paid Media
Intro
Paid media offers businesses a variety of benefits, including increased visibility, better targeting, measurable results, and cost-effectiveness. By leveraging paid search, social media advertising, display advertising, and sponsored content, businesses can reach new audiences, increase brand awareness, and ultimately drive more conversions. Read more about Paid Media

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Pay Per Click (PPC)
Intro
Pay-Per-Click (PPC) is a digital advertising model in which advertisers pay a fee each time one of their ads is clicked. PPC is a way of buying visits to your site, rather than attempting to "earn" those visits organically. Read more about Pay Per Click (PPC)

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R

Return on Ad Spend (ROAS)
Intro
Return on Ad Spend (ROAS) is a financial metric that measures the profitability of a digital advertising campaign. Read more about Return on Ad Spend (ROAS)

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Return On Investment (ROI)
Intro
Return on investment (ROI) is a measure of the profit earned from an investment compared to the initial cost of the investment. It is typically expressed as a percentage, and is often used to compare the efficiency of different investments. The higher the ROI, the better the return on the investment. To calculate ROI, the net profit from the investment is divided by the initial cost of the investment, and the result is multiplied by 100 to express it as a percentage. For example, if an investment of $100 earns a net profit of $20, the ROI would be 20/100 * 100 = 20%. Read more about Return On Investment (ROI)

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