Don't you want to read? Try listening to the article in audio mode 🎧
Have you ever received a message like this and started sweating? “To reach our KPIs, did we do A/B Testing on the CTA to increase the CTR on our Display Advertising?” Don't worry. You're not alone! In the world of marketing, many terms can be confusing when you are new to the field. Even experienced marketers sometimes have to look up the definitions of specific terms. But what are these terms, exactly? And why do we need to know them? In short, these terms are used to describe various aspects of marketing. They can help you understand what's going on in the industry, and they can also help you measure your marketing efforts. So, without further ado, let's look at the 12 essential marketing terms you need to know.

CTR (Click-Through Rate)

CTR, or Click-Through Rate, is one of the essential terms to know for modern-day marketing. It measures how many people clicked on a link or ad compared to the total number of people who saw it. A high CTR means your ad or link performs well and resonates with your target audience. To put this into action, you need to ensure that your ads are eye-catching, relevant, and have a clear call to action. For example, fashion retailer ASOS runs a campaign on Facebook where they used an eye-catching image of a model wearing their latest collection, with a clear call to action of 'Shop Now'. This results in a high CTR, as people are enticed to click the link to find out more.

A/B Testing

A/B testing is a vital tool for marketing and a must-know tactic to learn. It's a way of testing two versions of something to see which performs better. This could be anything from testing two different versions of a button on a website page, an email banner, an ad, or even a product. A/B testing is a great way to see which version of something works best for your audience and allows you to make informed decisions about what works and what doesn't. For example, if you're running an email campaign, you could create two different versions of the same email and send them to different audience segments. This would allow you to see which email version resonates more with your audience. You could also use A/B testing to test two different versions of a website page to see which one drives more conversions. Case studies are a great way to learn how other brands have used A/B testing to their advantage. For example, Airbnb used A/B testing to test two different versions of their website homepage. They found that the version with more images and less text was more successful in driving conversions. Another example is Amazon, who used A/B testing to test two different versions of their product page. They found that the version with more images and detailed product descriptions was more successful in driving sales.

Click fraud

Click fraud is the curse of modern-day marketing, but it's also one of the most important terms to know if you want to stay ahead of the curve. Simply put, click fraud is artificially inflating the number of clicks on an online advertisement. This can be done by automated bots or by competitors and malicious actors who want to drain your advertising budget. To prevent click fraud, you should use tools like Google's Click ID and IP address tracking to identify suspicious activity. You should also carefully monitor your click-through rate (CTR) to ensure it aligns with your industry's average. If it's unusually high, you may be a victim of click fraud. By understanding the dangers of click fraud and taking the necessary steps to protect yourself, you can ensure your marketing campaigns succeed, and your budget is well spent.


The small but mighty hero of marketing campaigns is definitely a pixel. Also known as a web beacon or tracking pixel, it is a tiny piece of code that can be embedded on a website or in an email. It helps marketers track user behaviour and measure the success of their campaigns. For example, when you visit a website, the pixel can help track how many people visited the site, how long they stayed and what pages they looked at. It can also be used to track the success of an email campaign or to see how many people clicked on a specific link. But pixels don't just track. They can also help you target your campaigns. By monitoring user behaviour, you can create customised ads tailored to the user's interests. For example, if someone visits your website and looks at a specific product, you can use the pixel to target them with an ad for that product. Take Nike, for example. They use pixels to track user behaviour on their website and create customised ads for each user. This allowed them to target potential customers with the right product at the right time, increasing sales. So, if you're looking to get the most out of your marketing campaigns, don't forget to add a pixel to your toolkit!

KPI (Key Performance Indicator)

KPI, or Key Performance Indicator, is a metric used to measure the performance of a specific goal or objective. It's vital to track KPIs to measure progress and success. Examples of KPIs could include website traffic, social media engagement, cost per acquisition, and customer satisfaction. To put this into action, you can use a tool like Google Analytics to track website traffic or a tool like Sprout Social to measure social media engagement. You can also use surveys to measure customer satisfaction. Once these metrics are in place, you can track them over time to measure progress and success. For case studies, you can look at how Adidas have used KPIs to measure progress and success. Adidas, for example, uses KPIs to measure cost per acquisition and customer satisfaction. By tracking these metrics, Adidas has been able to measure its progress and success over time.

LTV (Lifetime Value)

LTV (Lifetime Value), or Customer lifetime value (CLV), is critical for all marketers to understand. It's all about understanding how much a customer is worth to your business over their lifetime. Simply put, it's the total amount of money a customer will spend on your products and services over their relationship with your business. To calculate LTV, you need to consider the cost of acquiring a customer, the amount of money they spend on your products and services, and the length of time they stay with your business. For example, let's say you have a subscription-based business. You can use LTV to calculate how much you can afford to spend to acquire a customer, how much you should be charging for your subscription, and how long you should retain customers. You can also use LTV to measure the success of your marketing campaigns. For example, if you launch a new ad campaign that results in a higher LTV, then you know it was successful. So if you're just starting out in marketing, LTV is an important concept to understand. It can help you understand the value of your customers and make better decisions regarding pricing, marketing, and customer retention.

SEO (Search Engine Optimization)

Search Engine Optimisation (SEO) is the process of optimising your website and content to increase its visibility on search engine results pages. Meaning it plays a key role in helping you to get found by potential customers. To make the most of SEO, you'll need to use keywords, create content relevant to your target audience, and ensure that your website is easy to navigate. You can also use tools like Google Analytics to track and measure your SEO performance. To put SEO into action, you can start by researching keywords your target audience will likely search for. You can also use SEO tools like Moz or Ahrefs to track your progress. Once you've identified the keywords you want to target, you can create optimised content for those terms. This could include blog posts, videos, or even social media posts. Finally, make sure you're regularly checking your website's performance on search engine results pages.

SEM (Search Engine Marketing)

Are you ready to take your marketing game to the next level? If so, this next marketing term is a must-have in your vocabulary. We're talking about SEM, or Search Engine Marketing, which is a type of digital marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs). This is done through paid advertising, such as Google Ads. To get a better understanding of how SEM works, let's look at a few examples. If you're a clothing brand, you can use SEM to increase your visibility in SERPs for keywords related to your products. This could involve running a Google Ads campaign targeting those keywords and optimising your website for SEO. Another example could be a restaurant using SEM to increase its visibility in SERPs for keywords related to its cuisine. You can also look to other brands for inspiration. For example, Coca-Cola used SEM to increase their visibility in SERPs for keywords related to its products, resulting in increased brand awareness and sales. Similarly, McDonald's used SEM to increase their visibility in SERPs for keywords related to their fast food products, increasing brand awareness and sales.

CTA (Call to Action)

If you're a budding marketer, you've probably heard of CTA (Call to Action). A CTA is an instruction to the audience to provoke an immediate response, such as a click, signup, or purchase. CTAs are essential for modern-day marketing as they help to drive conversions and increase engagement. For example, a CTA might be a button that says 'Sign Up Now' or 'Download Now'. These CTAs should be placed strategically, like at the top of the page, at the end of a blog post, or at the bottom of an email. You can also use CTAs in social media posts to direct users to a landing page. To show you how effective CTAs can be, Dropbox added a CTA that said 'Try Now' and saw a 400% increase in signups.

Conversion Rate Optimization

Conversion Rate Optimisation (CRO) is the practice of increasing the percentage of visitors to your website that takes a desired action, such as making a purchase, signing up for a newsletter, or downloading an ebook. It's all about improving the user experience and ensuring that your website visitors have a positive experience with your brand. To put CRO into action, you can use A/B testing to see which versions of a page or design work best for your audience, or you can use heat mapping to identify which page elements are getting the most attention. For example, ASOS used heat mapping to understand how customers interacted with their product pages. They used the results to optimise their design and increase their conversion rate.

Display Advertising

Display Advertising is the practice of placing ads in a variety of digital spaces, such as websites, apps, and social media platforms. It's a great way to get your brand in front of a large audience and increase awareness. To make the most of Display Advertising, it's important to create compelling visuals that will grab your audience's attention. You can also use targeting options to make sure your ads are seen by the right people. For example, you can target by age, gender, interests, and more. To see how Display Advertising can be used to great effect, check out the case study of Nike's 'Nothing Beats a Londoner' campaign. This campaign used targeted Display Ads to engage with their target market in the UK. Another example is Airbnb's 'Live There' campaign, which used Display Ads to promote their brand and encourage people to book their next vacation with them.

RTB (Real-Time Bidding)

Real-Time Bidding (RTB) is the process of buying and selling ad impressions in real time. It's a type of programmatic advertising where marketers can bid on ad space in real time, meaning they can buy ads more quickly and efficiently than ever. RTB is a great way to get the most out of your ad budget and reach the right people at the right time. To implement RTB, marketers can use a demand-side platform (DSP) to bid on ad space. This is especially useful for targeting specific audiences or reaching people with specific interests. For example, a brand might use RTB to target people who have previously visited their website or purchased their products. As for case studies, one of the most successful RTB campaigns was conducted by the home-improvement store Lowe's. They used RTB to target people who had previously visited their website, and the campaign resulted in a 300% increase in sales. Now that you have read this marketing glossary, it is time to see the 5 Reasons You Need a Digital Marketing Strategy. Or check out our digital marketing courses and get the skills you need to advance your career.
Article updated on: 09 August 2023
Talent Garden
Written by
Talent Garden, Digital Skills Academy

Keep reading

The Definitive Guide to Digital Product Management

With the fast advancements in digital technology, we are all facing rapid change from our personal lives but also in ...

Meet our Students: Rebecca Kiechl – UX Design Fulltime Bootcamp

Rebecca Kiechl was a participant in our UX Design Fulltime Bootcamp happening 100% Online. Read the interview to find ...

Meet our Students: Luisa Redini - UX Design Part Time Course

Luisa Redini was a participant in our UX Design course happening 100% Online. Read the interview to find out more about ...

Meet our Students: Carmelita Ardizzone – UX Design Essentials Online Program

Carmelita Ardizzone was a participant in our part time UX Design Online Course. Read the interview to find out more ...