DATE:
17 APR 2023
Understand and apply: 8 key digital terms explained!
Whether you’re new to digital marketing or looking to sharpen your skills, this guide breaks down 8 essential digital terms and shows you how to measure them for real impact. Let’s dive in and turn buzzwords into actionable insights!
CPA (Cost Per Acquisition)
This refers to the total cost incurred for each action taken, whether it’s a cost per impression, cost per customer sign-up, or cost per purchase. It’s calculated by dividing the total campaign spend by the number of customers acquired. The lower the CPA, the better.
CPM (Cost Per Mille)
This is the cost you pay for every 1,000 ad impressions, whether the ad is truly seen or not. CPM is a basic metric included in every campaign to help determine if your ad impression costs are high or low.
CPC (Cost Per Click)
This is the cost for each time a user clicks on your ad. It’s used to evaluate ad performance — lower CPC indicates more efficient use of your budget, resulting in more clicks.
ROAS (Return on Advertising Spend)
Return from advertising measures the profitability of a campaign.

The formula is: (Revenue from ads / Ad spend) x 100 A good ROAS is around 4:1, meaning 400% return. Improving ROAS involves evaluating your content, correct ad setup, mid-campaign optimization, and whether your ads align with your target audience’s interests.
SEM (Search Engine Marketing)
This promotes your website or sales channel by increasing visibility when users search related keywords on Google. It’s a type of inbound marketing where you pay Google to display your ads.
SEO (Search Engine Optimization)
Organically ranking higher in searchesUnlike SEM, SEO involves optimizing your website or channel to align with what your audience is searching for. Techniques include: creating effective content, using relevant headlines, earning third-party backlinks, and regularly updating content. It’s free — Google ranks you based on quality!
A/B Testing
Test which ad your audience prefers. A method to improve ad efficiency by testing two marketing strategies with the same objective. You can compare copy, images, or promotions. It helps increase conversions, reduce bounce rate, and guide future ad planning.
MAU (Monthly Active Users)
This measures how many users actively use your website or app each month (excluding registered but inactive users). It helps you evaluate the effectiveness of your marketing strategy and track business growth.

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