Common Internet Marketing Acronyms Defined
TERM
MARKETING DEFINITION
B2B
Companies that market themselves to other businesses (vs marketing directly toward consumers).
B2C
BUSINESS TO CONSUMER
Companies that market themselves to consumers (vs other businesses).
CROP
CONVERSION RATE OPTIMIZATION
Typically used for online marketing and website optimization. Conversion rate optimization is changing your ads, marketing strategies or website to turn more viewers or visitors into conversions. What constitutes a “conversion” varies from company to company. A B2B company may say that a conversion has occurred when a website visitor downloads a case study, registers for a webinar or subscribes to an email newsletter. A B2C company typically refers to an inquiry or lead as a conversion. Ecommerce websites might call an online sale a conversion. A common mistake many business owners make is spending money to generate website traffic (via strategies like PPC, SEO, etc.) but not allocating any budget to improve their website’s conversion rate. You want traffic, but you need conversions!
PPC
PPC – PAY PER CLICK
Pay-per-click is one element of search engine marketing. Advertisers select and bid on keywords they would like their ad to appear when a query is performed on a search engine. The most common Pay per click platforms exist on Google (AdWords), Yahoo (Search Marketing) and Bing (Microsoft AdCenter). + Learn more – additional PPC terms and definitions
PPL
PPL – PAY PER LEAD
Pay-per-lead advertising is self-explanatory. Most home service businesses have heard of Service Magic. This is a popular pay-per-lead campaign where the publisher (Service Magic) pays to generate the leads and then sells them to (multiple) advertisers. Some Pay per lead platforms sell the same lead to multiple companies (like Service Magic), while others are exclusive to one advertiser.
ROI
ROI – RETURN ON INVESTMENT
The percentage of profit or revenue derived from a particular advertising or marketing campaign/strategy. Small, medium-sized businesses are best served using profit (vs revenue) and focusing additional marketing budget on the advertising strategies with a positive ROI (those generating profit over the advertising cost). NOTE: It is only possible to calculate an accurate ROI for advertising if you accurately track your advertising results!
ROAD
ROAD – RETURN ON AD SPEND
Related to ROI, ROAS is the revenue generated per dollar spent. ROAS can be a useful metric when comparing the performance of two different advertising strategies. Cost per lead can be misleading. Suppose one Yellow Page ad has a cost per lead of $90 and the other has a cost per lead of $50, but the YP ad with the $90 cost per lead generates $700 jobs while the ad with the $50 cost per lead generates $300 jobs. Alternatively, what if one advertising strategy generates leads that convert to sales at a much higher rate? In both cases, calculating the ROAS helps determine which ad is more effective.
SEO
SEO – SEARCH ENGINE OPTIMIZATION
The process of changing your website’s code, structure, and on-page and off-page content in a way that allows search engines to more easily find, index and rank your site relative to your competitors. Search engine optimization is typically considered a search engine marketing strategy (along with Pay per clicks). For example, if someone searches for Maryland SEO companies, the companies that come up organically have invested years in optimizing their websites for this particular search term (whether it’s the right term or not is another issue!). + Learn more about SEO – Read our SEO FAQs
SEM
SEM – SEARCH ENGINE MARKETING
Each page of search results on Google, Yahoo, Bing and the other search engines is real estate. As a business owner, you want to maximize yours – more search engine real estate equals more (qualified) visitors, leads and sales! Search engine marketing is increasing your search engine real estate using tactics such as SEO, PPC and Local Optimization (ex., adding your business to Google maps).
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