roi roas romi are you speaking another language the digital marketing world is full of marketing terms and acronyms that can literally feel like you're speaking another language it can be overwhelming even the term digital marketing is an umbrella term used to describe any type of online marketing including search engine optimization social media marketing advertising and email marketing but after nine years in the field of marketing and helping hundreds of clients see amazing results i have a pretty good grasp on the important terms you need to know to create measure and analyze your marketing campaigns [Music]
and today i'm going to take you through a crash course on the language of marketing to make it easy to remember and associate i'll be breaking up the terms into different categories including website social media marketing social media advertising search engine advertising search engine optimization and email marketing before i do i want to say thank you to everyone who has liked this video thus far it truly helps us to reach more people with our videos if you have not already subscribed go ahead so you never miss a video that can help you grow online okay
let's get started the category ever important marketing terms these are the marketing terms that apply no matter what form of digital marketing you are doing and are important to the success of your overall marketing campaign cpa or cac cpa cost per acquisition or cac cost to acquire a customer is the total sales and marketing costs needed to acquire a new customer it answers the question is every customer a profitable customer imagine a scenario where new customers bring in fifty dollars of revenue but cost you two hundred dollars each to acquire a customer aka you are
losing 150 dollars every time you acquire a new customer not good or maybe it is you'll see why later in this section here's a quick equation to help you figure out your cpa or your cac also known as cat sales plus marketing costs divided by new customers kpi a kpi or key performance indicator is the metric or metrics you use to track the progress towards your business goals kpis answer the question what should i be tracking to make sure i reach my goals your kpis will change depending on what the goal is for example if
you're looking to strictly build brand awareness engagement and impressions might be your kpis roi return on investment is the percent return for the money spent on marketing roi answers the question are you losing or gaining money every time you spend a dollar in marketing roi is a measure of marketing effectiveness and clearly alerts you to whether your market investment is profitable or not you can calculate your roi with the following formula sales growth minus organic sales growth minus marketing costs divided by marketing costs ltv ltv or lifetime value is the projected revenue of a customer
over the lifespan of them being a customer ltv answers the question when do you break even on the cost to acquire a customer by measuring your ltv you can determine if your cap cost per acquisition cost to acquire a customer is healthy or not for example let's look back at our previous scenario every new customer brings in 50 dollars of revenue but cost you 200 each to acquire a customer aka you're losing 150 to acquire a new customer on its face this may appear very very bad like who wants to throw 150 into a fire
but let's say your customers on average purchase from you 10 times aka the ltv long term value of a customer is actually 500 meaning over the long run you actually make three hundred dollars in gross profit for every two hundred dollars you spend not bad that's why ltv must be considered when determining how much you are willing to spend on marketing here's how to calculate ltv average value of sale times average number of transactions av split testing a b split testing is the act of showing different variants of an ad email or web page to
an audience to see which variant drives more conversions the truth is that you don't know what will work until you try it so you want to try many different things here at life marketing when we create ads for our clients and ourselves we create at least three different ads turn off the low performing ones and go all in on the ad variant that will give us the best chance for success here's a clip from our previous video where i talked about ab split testing ever heard of the term don't knock it until you try it
the premise here is that you don't know what is good and what is bad until you give it a chance and the same is true for your ads you never know what will work and what won't work until you try it so test everything test videos versus still images test long copy versus short copy test appealing to different emotions such as fear and joy touch different extensions call to actions test one audience against another test test test and then test again customer avatar a customer avatar is something you create so you understand who your ideal
customer is this will include demographics like gender and age also interest buying motivations behaviors pain points and goals are considered check out an example of a customer avatar that we use here at life marketing people buy solutions not products or services your customer avatar will help you drive more sales by focusing on who you are selling to and less about what you are selling top of the funnel the top of the funnel refers to the top layer of the marketing funnel a phone that describes the customer journey at the top of the funnel are potential
customers who have not heard of your business before your marketing goal when advertising to the top of the funnel is to build brand awareness around the problems you solve middle of the funnel the middle of the funnel refers to the middle layer of the marketing funnel once again a funnel that describes the customer journey at the middle of the funnel are potential customers who have engaged with your brand before but have only shown low levels of engagement like non-website visits your marketing goal when advertising to the middle of the funnel is to explain why your
solution is the best solution bottom of the funnel the bottom of the funnel refers to the bottom layer of the marketing funnel say with me a funnel that describes the customer journey at the bottom of the funnel are potential customers who have engaged with your brand before but have shown high levels of engagement like website visits for a high amount of time add to carts or opt-ins your marketing goal when advertising to the bottom of the funnel is to answer questions and objections to move users to purchase lead magnet elite magnet is a marketing asset
you can give away in exchange for customer information such as an ebook checklist or a calculator lead magnets such as our market and budget calculator do multiple things they provide value to your audience they increase your brand recall and relationships and acquire potential customers emails for further follow-up new category website google analytics google analytics is the most trusted and widely used web tool by google that tracks website traffic and user engagement on your website google analytics offers a ton of website metrics that can help you analyze your web pages and traffic sources to understand what
is working and where improvements can be made bounce rate bounce rate tells you the percentage of website sessions where only one page on your site was viewed according to rocket fuel most websites receive bounce rates between 26 percent to 70 percent if your bounce rate is on the high side it can mean a number of things content that is not relevant to those who land on your page slow page speed or poor design or user flow all factors that will make someone leave your site fast bounce rate can be viewed as an overall metric for
your site or even better on a per page per source basis within google analytics time on page time on page is a metric that matches how long on average visitors spend on individual pages on your site time on page helps you understand which pages your users spend time engaging with a low time on page like a high bounce rate could indicate the following things content that is not relevant to those who land on your web page slow page speed or poor design or user flow once again all factors that will make someone leave your site
fast utm utm urkin tracking module are pieces of text you add to your urls that tell analytic platforms like google analytics more information about the link you likely encounter them on a daily basis but haven't even noticed here's an example of a utm i recently saw for facebook ad the highlighted portion of that url is the utm now utms help track the performance of different sources mediums campaigns and content an easy way to create them for your site is to use google's utm builder found here referral traffic referral traffic is traffic to your site from
another source outside of google search engine it's important to monitor your traffic from other sources so you can understand the sources that are not only bringing you traffic but are bringing you leads and sales can i get a money printer sound hosting hosting refers to the companies that store host your website on their servers providing you the tools and the services to make your website appear on the internet popular hosting companies include godaddy and bluehost page speed page speed is a measurement of how quickly the content on your page loads page feed is extremely important
to both your website visitors and search engines which makes it very important for your business google indicates that page speed is a ranking factor and statistics show that 40 of people abandon a website that take more than three seconds to load to measure your page speed use google's page speed insights new category alert social media management algorithm social media algorithms refer to the algorithm social media platforms use to sort post or user c's based on their interest and relevance rather than the time a post is published algorithms have an effect on reach as social media
platforms solely determines what users see organically boost they post according to facebook a boosted post is a post to your page's timeline that you can apply money to in order to boost it to an audience of your choosing these posts show up as an ad to the audience you choose and allow you to reach more people than you organically would when posting engagement rate engagement rate is a metric used to calculate the average number of interactions your posts receive per follower engagement rate answers the question of how well do your post perform organically considering how
many followers or fans you have a high engagement rate means your posts are relevant to your audience engagement rate can be calculated with the following formula total engagements on a post divided by total followers times a hundred pay to play pay to play refers to social media platforms such as facebook making it difficult to reach users organically and the need to rely on facebook ads and promoted posts for reach zuckenberg facebook's algorithm is famous for putting limits on the amount of posts fans see from business pages without advertising facebook's organic reach has been in a
steep decline for years in fact today that number is down to less than four percent news feed your news feed on social media refers to the timeline of posts from your friends companies and interests that you follow recommended content and sponsored ads on the home page of those social media sites on twitter it's called a timeline so don't get confused alright new category advertising on social media and search engines cpm cpm also known as cost per mille is the cost advertisers pay to reach every 1 000 impressions an impression occurs every time someone views your
ad cpm is important because it reflects your cost to reach your audience if you have an idea of your expected cpm before you start advertising you can properly budget for your success if your cpm is higher than your competitors you are paying more than they are to reach the same audience you can calculate cpm with the following formula total amount spent on an ad campaign divided by impressions times a thousand you can watch an in-depth video on cpm right here alright ctr ctr or click through rate is the percentage of people who clicked your ad
after seeing your ad ctr is a measure of how helpful and relevant your ads are a low ctr indicates that your ads are not relevant to your audience ctr is calculated with the following formula total number of clicks you receive divided by impressions check out a complete overview of ctr and industry averages right here alright impressions impressions is a measure of how many times your ad appeared on screen tracking impressions are important as it is an indicator of frequency which we'll discuss in a moment reach reach is a measure of the total number of people
who saw your ad understanding your reach and advertising is important because it helps you decipher if enough people saw your ad before you make a decision regarding the performance of that ad reach differs from impression as reach is only calculated once per person and does not take into account how many times someone saw the ad like impressions do frequency frequency measures how many times the same people see your ad ideally you are excluding those who convert from seeing your ad leaving you with only those who have not converted yet to continue to see your ads
that was a lot thus a high frequency is a sign of an ad that is not relevant which is not a good thing and will result in higher ad costs hey can i spend more for that frequency can be calculated with the following formula impressions divided by reach lookalike audience a look-alike audience is an audience created by an algorithm that shares common characteristics of the source audience and due to having similar characteristics as your source audience with enough data lookalike audiences generally perform extremely well and a lot better than code targeting a look-alike audience of
past customers is the ultimate look-alike audience as the audience is directly linked to your number one business goal sales other examples of look-alike audiences that work well are audiences of add to carts and page views alright new category alert search engine optimization cert cert or search engine results page are the results served to users who search something on the search engine these results are the foundation for search engine marketing as businesses optimize their site to simply show up at the top of search results now the serp contains two types of results organic and paid organic
search results show up under paid results and are the result of search engines algorithms deciding what pages are most relevant to the search performed paid search results show above organic search results and are the result of businesses paying that money to google to show up for keywords they choose to pay for known as pay per click or search engine advertising ranking factor seo ranking factors are seo requirements the do's and don'ts that help improve the chances of your site ranking on search engines seo ranking factors change pretty often but at this time the most important
factors include the following things user signals such as bounce rates and time on site page speed mobile friendliness and domain age url and domain authority sitemap a sitemap is an xml document that tells search engines to index the pages on your site so they are available for you to show up on search results sitemaps are especially important for new sites large sites and sites that tend to update their information pretty often making your site easy to crawl by having a sitemap and submitting it to google is a foundational seo principle all right d a d
a or domain authority is a mod search engine score that predicts how likely your website is to rank it's a measurement from zero to a hundred that tells you how powerful or authoritative your site is you see sites with high da scores tend to rank easier and higher than sites with lower das the best way to increase your website's domain authority is to get backlinks for your site something we'll cover later pa or page authority is a mod search engine score that predicts how likely a particular page is on your website to rank page authority
is also a measurement from zero to a hundred that tells you how powerful or authoritative a page is pages with higher pa scores tend to rank easier and higher than pages with lower pas the best way to increase a web page's page authority is to get backlinks for the page something we'll cover right now backlink a backlink is any link from an external website that points to your website backlinks send signals to google that your site must be relevant and important and continue to be a ranking factor on google but all backlinks are not created
equal and you should aim to get backlinks that meet the following criteria first the backlink is relevant to the pages linking to and secondly the domain authority and page authority of that site or page is higher than yours long tail keywords long tail keywords are keywords that are more specific and longer than more commonly searched for keywords long tail keywords tend to be more focused on purchase intent than broad keywords let's use a furniture store as an example in this example the keyword antique loveseat will be a long tail keyword that is more specific and
targeted even though long tail keywords generally have lower search volume they tend to have greater roi due to the increased purchase intent and specificness alright new category email marketing open rate email open rate is the percentage of people who open a specific email out of your total number of people who receive the email open rates measure one how well your subject lines perform and two how well your email list is engaged email open rates differ by industry but the average email open rate across all industries according to campaign monitor is around 17.8 percent bounce emails
a bounce email is the email that simply couldn't be delivered bounces are expressed as a percentage of subscribers who didn't receive your message now there are two types of bounces hard and soft a hard bounce is an email that cannot be delivered for a permanent reason like an invalid email address a soft bounce is an email that cannot be delivered but due to a temporary issue like a file that's too big or someone's inbox being full the average bounce rate across industries is 0.7 according to campaign monitor list maintenance list maintenance is the act of
updating an email list to keep it healthy common list maintenance activities include the following things removing updating and valid addresses segmenting your list and re-engaging or eliminating old contacts personalization email personalization is the use of data about your subscribers to produce more targeted emails the most common piece of data used to create personalization is the subscriber's first name but the use of first name is simply the tip of the iceberg information such as subscribe date birthday form submission data location and website pages visited are just a few ways to help you create and send emails
that feel more personal personalization is typically implemented through tags within emails such as mailchimp's merge tags drip campaign a drip campaign is a triggered sequence of automated emails that help build trust and consistent engagement they are sent in a specific order and at specific times have you ever got an email as soon as you opted in for something like an ebook or a discount well that's courtesy of a drip campaign common drip sequences include the following things abandoned carts welcome sequences appointment reminders opt-in follow-ups and win-back sequences there's 40 marketing terms to help you create
analyze and pivot your marketing campaigns to better performance and roi and if you don't know now you know if you learn something new let me know in the comments and if you haven't already like this video make sure you do it and subscribe so you don't miss another value pack video to help you grow online i'm quran from life marketing until next time you
