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Definitions on Advertising

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.

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.

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.

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.

Conversion Path

Intro
A conversion path is the series of steps a visitor takes on their journey from first interaction to becoming a lead or customer. It’s the structured sequence of touchpoints designed to guide prospects toward a desired action, such as filling out a form, downloading content, or making a purchase.

Conversion Rate

Intro
Conversion rate is the percentage of users who complete a desired action—such as making a purchase, filling out a form, or subscribing—out of the total number of visitors or interactions. It’s one of the most important metrics for measuring the effectiveness of marketing campaigns, landing pages, and overall user experience.

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.

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.

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.

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.

Demographics

Intro
Demographics are statistical data that describe the basic characteristics of a population, such as age, gender, income, education, and location. In marketing, demographic information helps identify and understand target audiences to create more relevant and effective campaigns.

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.

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.

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.

I

Ideal Customer Profile (ICP)

Intro
An Ideal Customer Profile (ICP) is a detailed description of the type of customer that would benefit most from your product or service and deliver the most value to your business in return. A clear ICP guides marketing, sales, and product strategies by focusing efforts on the audiences most likely to convert, retain, and grow.

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.

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.

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.

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.

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%.

S

Search Engine Marketing (SEM)

Intro
A digital marketing strategy focused on increasing a website’s visibility on search engine results pages (SERPs) through paid advertising methods. SEM primarily involves the use of pay-per-click (PPC) advertising campaigns where businesses bid on keywords that users enter into search engines like Google or Bing. The goal is to display ads prominently when potential customers are searching for related products or services, thereby driving targeted traffic to the website.