By Corinna Graham
It’s easy to get lost in a sea of alphabet soup when you hear marketing acronyms without understanding what they refer to. Terms like SEO, ROI, and PPC are brought up in conversation everyday in our office, and in fact, they refer to some of the most important services that web-marketing companies can offer to clients. However, we realize that not everyone who reads this blog works for a web-marketing company, so we’d like to take just a short amount of time to explain what some of the most important acronyms are and what they mean.
To begin with, B2B refers to a type of trade we do here at inSegment. It simply means to business to business. In other words, we are a business that markets businesses and their services or products to other businesses.
When a business pays for Internet advertisements, there are different payment models that are denoted by some acronyms. CMP, or cost per thousand impressions (M being the Roman Numeral for thousand), is one of these pricing structures. Websites sell ad impressions in blocks of one thousand, and the CPM is the amount of money charged per thousand impressions.
Sometimes you can get a reasonable and profitable pricing structure with CMP, but sometimes you can get a better deal with CPC. CPC refers to Cost Per Click pricing. In this structure, an advertiser pays an amount for each click someone makes on a link leading into their website.
The CTR, or Click-Through Rate, refers to the percentage of website visitors who click on a link. CPC is the pricing model for paying for individual clicks, and CTR is the measure of the percentage of those clicks.
Similarly, PPC indicates the payments that are based on click-throughs. This is the payment model where advertisers pay only for each link on their ads that direct consumers to a landing page on the advertiser’s website. The advertiser pays a set amount for each click made by consumers on promotional links.
A CPA, or Cost Per Action payment model, is when the advertiser pays for each visitor that takes a specific action in response to a web ad. Actions include signing up for an account with a company, requesting free trials, subscribing to a newsletter or email list or, in a very profitable scenario for the advertiser, purchasing something!
In regards to web marketing and online advertising, the important measurement is the ROI. ROI is the Return On Investment. It refers to how much profit is made by the advertiser once the costs of the ads are subtracted. ROI is a measure of how profitable a marketing campaign is in terms of returns on money spent.
Some of the most important services that inSegment offers are SEO services. SEO is Search Engine Optimization, or the process of optimizing web pages in such a way that they achieve high rankings in the results of a search engine. Along with SEO, SEP, or Search Engine Positioning, refers to the process of getting your page listed in a beneficial position on search engine results. The best position is on the first page of Google, in the first position.
SEM, or Search Engine Marketing, stresses the importance of SEO and SEP in the process of marketing your company. SEM emphasizes that generating the right type of traffic (traffic of consumers who want the products/services that your company is offering) is more important than obtaining high rankings.