The Guide to Understanding Digital Marketing Agencies: Marketing Acronyms

What are Marketing Acronyms and why do we use them?

A marketing acronym is simply an abbreviation for various types of marketing-related tools, methods, metrics, and more. Marketing acronyms can help make communication faster, provided that everyone in the conversation understands the meanings of the acronyms used. They will definitely help make our communication smoother, let alone show off to your friends 😂

11 Important Acronyms Digital Marketing

ROI: Return on Investment

It refers to how an investment's performance is evaluated in relation to its cost. It is usually calculated as the percentage of net profitability resulting from an investment, divided by the total amount of the investment, and is usually expressed as a percentage or as a numerical value. ROI Formula: Net Income/Investment Cost X100

ROAS: Return on Advertising Spend

It refers to how the performance of an advertising investment is evaluated in relation to the amount spent on it. It is calculated as the ratio of the revenue generated from an advertising campaign, divided by the amount spent on advertising, and is usually expressed as a multiplier (e.g. ROAS 4:1 means that for every unit spent on advertising, 4 units of revenue were generated).
ROAS Formula: Net Income/Advertising Cost X100

CTA: Call to Action

It refers to an element or phrase in an advertisement, website, or other communication medium that calls the recipient to take a specific action. The purpose of a CTA is to encourage the recipient to respond, click on a link, purchase a product, sign up for a service, etc. A well-designed CTA can increase the effectiveness of marketing campaigns and lead to a greater number of desired actions from the audience.

MQL: Marketing Qualified Lead

It refers to a customer who has shown interest in your business through your marketing efforts and has met certain criteria that make them likely to become a customer. MQLs are potential customers who have expressed interest, but have not yet reached the sales stage. It is important to note that the MQL category is different from SQLs (Sales Qualified Leads), who meet the necessary criteria and are considered ready to sell (see below). The goal of MQL marketing terminology is to identify and focus attention on customers who may be interested in your products or services.

CPC: Cost Per Click

It refers to the amount you pay each time someone clicks on your ad. Average CPC is calculated by dividing the total cost of your ad by the total number of clicks you receive. This measure helps you understand the cost of each click and evaluate the effectiveness of your ads.
Avg. CPC Formula: Advertising Cost/Click

CPM: Cost Per Mille

It refers to the amount you pay for each thousand times an ad is shown to users. CPM is calculated by dividing the total cost of the ad by the number of thousands of impressions the ad has. This metric helps you understand your cost per thousand impressions and compare your advertising performance across different platforms or methods.
CPM Formula: Total Cost / Impressions x1000

CPA: Cost Per Acquisition

It refers to the amount you pay to acquire a new customer or a desired action from a user, such as a product purchase or service sign-up. CPA is calculated by dividing the total cost of advertising by the number of acquisitions or desired actions that have occurred. This measure helps you evaluate the effectiveness of your marketing campaigns in acquiring new customers or performing specific actions.
Avg. CPA Formula: Total Cost / Number of Conversions

CRO: Conversion Rate Optimization

It refers to the process of improving the conversion rate on a website, app, or other medium, with the goal of increasing the number of users who take desired actions, such as purchases, registrations, information requests, etc. CRO involves analyzing data, testing various changes and improvements, and implementing best practices to create an experience that encourages users to convert. The goal of CRO is to increase the efficiency and effectiveness of a website or online presence.

SQL: Sales Qualified Lead

It refers to a potential customer who has expressed interest in a company's products or services and meets the criteria to be considered ready for a sale. SQLs typically come from online forms, newsletter signups, or phone calls. The sales department verifies a customer's qualification as an SQL, based on specific criteria set by the company.

KPI: Key Performance Indicators

It refers to an indicator used to measure and evaluate the achievement of goals and the performance of a project, business or marketing campaign. KPIs are specific indicators that measure critical elements of performance, such as sales, number of customers, registrations, conversions, etc. KPIs are important for monitoring progress, making decisions and identifying areas that require improvement. With the appropriate selection and monitoring of KPIs, performance improvement and fulfillment of strategic goals can be achieved.

rewize Blog

Read more about marketing, e-commerce and tools that will help you grow your business.

Let's Talk