Lesson 4

Internet Marketing Terminology

What is Traffic, Channels, CPA, SMM, PPC, Conversion, Sales Funnel, Reach, Engagement, Visits, Views, Target Audience, etc.?

In order to correctly approach the online presence of a company, you need to understand the terminology. Also, it is important to speak the same language with online agencies.

Traffic – the flow or number of visitors to a site or social network page for a certain period of time.

The source of traffic is all that leads visitors to the site.

Offline traffic sources – business cards, posters, QR codes, etc.

Online traffic sources – search ads, banners, social networks, etc.

Organic traffic – visitors who found your site in any search engine without any additional advertising.

Site analytics – a quantitative measurement of traffic characteristics using special services like Google Analytics or Yandex Metrika. For example, how many visitors came from a particular social network, what time they visited the site, how many visitors came to your site from search, etc.

End-to-end analytics – a quantitative measurement of the effectiveness of Internet marketing, to monitor not only traffic and its sources, but also the entire chain of consumer actions. For example, switching from a social network to a website – viewing a certain position – filling out a request – making a purchase.

Advertising channels – places for advertising or informing about your business.

Online channels: website, search advertising, social networks, e-maps.

Offline channels: business cards, souvenirs, TV, radio, newspapers, posters, billboards, etc.

Search advertising – advertising in the search engines of Yandex or Google, when your ad is displayed along with the search results for specific queries.

Targeted advertising – your ads are shown to specific groups of people or audiences, united by interests, location, online behavior and other parameters.

Display advertising – your ads are shown on specific advertising sites or networks according to your conditions.

Remarketing, retargeting – technologies that allow you to re-show ads to people who have already seen your ad or performed some action with it. They allow to remind of some offers, return a user to your site, make a re-sale, etc.

Conversion – the ratio of the number of visitors’ useful actions at a site or social network to the total number of visitors. For example, conversion to requests from the site 0.1 means that out of 10 visitors only 1 made request. There can be different types of conversions, for example, from visitors to requests, visitors to purchases, visitors to re-purchases, etc. .

Sales funnel – a quantitative description of the company’s interaction with the client. Usually a funnel describes 4 stages of sale, for example: informing, interest, request, purchase.

Why a funnel? Because it becomes narrow – closer to the sale, the less potential customers.

For example, when we inform 1000 people about us, 100 becomes interested, 10 send a request, and 1 person buys something.

A sales funnel may also contain a larger number of sales stages, for example: determining the circle of potential customers – informing – interest – studying the conditions – intention to purchase – request – buying – satisfaction – re-purchase.

The size of funnel may depend on the type of product or service, the sales algorithm and the desire of business to consider the processes in detail.

Social network metrics – quantitative indicators of your social network page’s performance.

Reach – the total number of visitors who saw your ad or post.

Organic reach – either the number or the percentage of people who saw the post to the total number of subscribers without additional promotion or any payment.

Paid coverage – the number of people who have seen a promotion post for payment.

Visits or profile views on social networks – the number of visitors who, after seeing your post or finding it in a search, were interested in the general information of your page.

Actions in the social network – any activity of the visitor to your post (like, share, comment).

Engagement – the ratio of visitor activity to reach. One of the most important parameters by which a social network ranks a business page and understands how interesting your page is for its visitors.

Audiences – people you want to show ads for. It is possible to target a specific audience, for example, by interests, location (geo-targeting), age, gender, social network activities, etc.

Target audience – people who can make a purchase from you. It can be selected according to interests, age, geolocation, online actions and many other parameters.

Online reputation – what people write about your company on the Internet and what impression your company makes on potential buyers based on reviews, comments, etc.

Most common abbreviations in Internet Marketing

SERP (Search Engine Results Page) is a search engine page that returns results for a specific query.

SEO (Search Engine Optimization) – technical and content site optimization for better search engine results.

SMM (Social Media Marketing) – promotion and maintenance of business pages in social networks

CTR (click-through rate) – clickability of an ad or banner on the Internet. Shows the ratio of clicks on the banner to the total number of views. For example, CTR = 1% means that out of 100 views there was one click.

CPA (Cost Per Action) – the cost of advertising on the Internet, estimated for any action, for example, a request or subscription.

CPC (Cost per Click) – the cost of advertising on the Internet, estimated for each click on an ad.

PPC (Pay per Click) – pay per click advertising

CPM (Cost-Per-Mille) – payment for online advertising for 1000 impressions of a banner or ad

Naturally, here we have considered far from all the concepts that are found in Internet marketing.

If you did not find a description of a term here – please write to us. We will try to clarify the meaning of an unknown term or concept.