32 Important Advertising Terms You Need to Know Before Executing Your Campaign

Rich Ulan

Rich Ulan About The Author

Jan 29, 2021 9:15:00 AM

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Digital marketing is integral for businesses today if they want to reach most audiences. If you want to sell your products or services, keep in mind that 78% of internet users conduct product research online before making a purchase, so digital marketing is crucial if you want to connect with those people.

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To help you understand everything that goes into a complete digital advertising campaign, here are some advertising terms to know. Keeping these top marketing tips in mind can help you get the most from your efforts, and ad spend.

1. A/B Testing

This testing method, also known as split testing, compares two different landing pages or ads to gauge their performance. For example, you might have two ads that use a different image, headline, or another element. An A/B test would involve launching both at once and seeing which one generates more traffic.

2. Analytics

Analytics look at data and statistics about users and how they interact with a business's website. They are used to help measure the performance of an advertising or marketing campaign. Specific metrics such as click-through rates, impressions, and website traffic can help marketers determine if a campaign is successful and figure out how to optimize their performance.

3. Automation

Through automation, businesses can simplify specific processes and eliminate manual tasks where they aren't required. Automation can save time, effort, and money as processes are made more efficient, and marketers can spend more time on other tasks. HubSpot found that 68% of businesses are using some form of automation, so it's a necessity today if you want to remain competitive.

4. Attribution

Using attribution, marketers can determine which touchpoints lead to the most conversions, which can help calculate ROI. There are three main attribution models based on touchpoints: First touch, last touch, and multi-touch. For instance, a consumer might encounter an ad, followed by an email campaign, and ultimately contact the business via email. According to HubSpot, 52% of marketers use attribution marketing today, making it popular among most industry professionals.

5. Bounce Rate

When people visit a website and immediately leave without interacting with it beyond the initial landing page, this contributes to the bounce rate. The bounce rate is the percentage of people who visit a site and leave without venturing further. High bounce rates could indicate a landing page with low-quality, irrelevant, or generally unhelpful content that doesn't answer visitors' questions.

6. Brand Awareness

Brand awareness is the level at which people recognize and recall a brand or specific offerings. Apart from conversions, brand awareness is a crucial goal for many advertising campaigns.

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7. Call-to-Action

The call-to-action is a button or phrase that encourages people to take a specific action. For example, people may see a CTA on a TV commercial encouraging them to "call now at [phone number] for a free consultation."

8. Click-Through Rate

The click-through rate (CTR) is the percentage of people who click through an ad after seeing it. You can calculate this by dividing the total number of clicks on an ad by the number of times it's appeared and convert that number into a percentage.

9. Competitive Analysis

You can look at your competitors to find out what they're doing right and what they're neglecting to do, which you can then adapt for your own campaigns. This is known as competitive analysis, which can give you plenty of ideas for your campaigns.

10. Conversion Rate

Landing pages may be the least popular type of sign up form used, but they have the highest conversion rate at 23%. Meanwhile, popup ads, which are the most popular, have the second-lowest conversion rate at a mere 3%.

11. Cost Per Click

The cost per click, or CPC, is the money that advertisers spend on average for each click on an ad. You calculate this by dividing the amount of money spent on an ad campaign by the number of generated clicks.

12. Cost Per Thousand

This metric, also known as CPM, reveals the cost per 1,000 ad impressions. It's commonly used for pricing when buying display ads.

13. Email Marketing

In 2019, there were around 3.9 billion email users, and that number is expected to grow to 4.48 billion by 2024. If you're not using email marketing, you're missing out on a huge opportunity to nurture leads, boost conversions, and increase customer loyalty.

14. Engagement Rate

This is the rate at which people are engaging with social media posts, which may include likes, shares, or comments.

15. Hashtags

One of the best tools for social media campaigns is the hashtag, which helps share topics with a wide audience using "#" followed by a key term. You could create your own hashtags in a brand awareness campaign, or you can engage with audiences through a popular hashtag in your posts.

16. Insights

Market insights consist of the discovery of actionable, relevant, and previously unknown aspects of a target market. Insights are revealed through in-depth analysis of an audience.

17. Impressions

Ad impressions are the amount of times ads have appeared in front of users, but they don't account for whether a user actually saw or interacted with the ad.

18. Key Performance Indicators

When measuring the success of marketing campaigns, key performance indicators (KPIs) are used. KPIs in ad campaigns could include customer lifetime value (CLV), conversion rates, website visitors, referral traffic, and more.

19. Keywords

Keywords are individual words or phrases that are used to rank in search engines for specific searches. Paid ad campaigns can also use keywords to ensure the relevance of placement in addition to SEO.

20. Landing Page

The webpage that visitors land on after clicking ads or search results is known as a landing page.

21. Metrics

In analytics, metrics are the specific numbers that advertisers look at to measure and understand campaign performance. Metrics may include website traffic, conversion rates, impressions, cost-per-click, and others that give people specific insights.

22. Meta Descriptions

In search results, meta descriptions are the brief descriptions that appear beneath the clickable titles. They often include details about what users will find on the corresponding page followed by a brief call-to-action.

23. Organic Search Traffic

In SEO campaigns, businesses aim to get a large amount of website traffic from search engines through high rankings for popular search terms. This traffic is known as organic search traffic, which is different from paid traffic received from paid ads.

24. Optimization

The process of optimization entails making advertising processes smoother and more efficient, usually by making sure ads and webpages reach the right audiences at the right time to maximize traffic and conversions.

25. OTT

Over-the-top (OTT) is a type of ad that appears on streaming services. OTT ads are similar to TV commercials, but OTT ad breaks are often shorter and allow for more optimized audience targeting.

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26. Paid Advertising

Paid advertising campaigns use ads that advertisers pay for based on cost-per-click or cost-per-acquisition. Typically, they bid on keywords that users may search to see those ads, and those with the highest bids land the majority of ad placements.

27. Pay Per Click

The pay-per-click (PPC) pricing model involves paying ad publishers or vendors based on how many clicks the ads receive in a campaign.

28. Retargeting

Retargeting involves serving ads to users who have previously visited a website, in an effort to bring them back to make a purchase.

29. ROI

Return on investment, or ROI, is the profit that a business makes on an ad campaign. ROI is calculated to determine whether any marketing effort is worth the investment.

30. Segmentation

Instead of targeting a single collective audience, advertisers tend to break audiences into different groups, which is known as segmentation. Different ad campaigns can then be developed and used for each audience segment.

31. SEO

Search engine optimization (SEO) is a process that consists of optimizing a website to perform well on search engines. Different webpages will target different organic search terms, and certain technical aspects along with page content can contribute to search engine rankings for those terms. One of the best technical tactics for improving SEO is mobile performance optimization.

32. SEM

Search engine marketing (SEM) is the process of marketing on search engines with a combination of organic and paid search campaigns. The ultimate goal is to increase website traffic and maximize visibility on search engines.

By understanding each of these terms and implementing these concepts in your digital marketing strategies, you can outperform competitors and make sure your marketing efforts reach your audiences. With more knowledge around each aspect of your campaigns, you'll ultimately be able to optimize their performance to yield long-term results.

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