Assistance in understanding some Digital Marketing Acronyms and getting your head around the the digital advertising industry.

AIDA – Attention, Interest, Desire, Action – Given that many consumers become aware of brands via advertising or marketing communications, the AIDA model helps to explain how an advertisement or marketing communications message engages and involves consumers in brand choice.

API – Application program interface – APIs are the defined interfaces through which interactions happen between an enterprise and applications.

AR – Augmented reality – adds digital elements to a live view often by using the camera on a smartphone.

ASP – Application service provider – is a business providing computer-based services to customers over a network; such as access to a particular software application using a standard protocol.

B2B – Business to business – also called B to B or B2B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer.

B2C – Business to consumer – refers to commerce between a business and an individual consumer.

CLV – Customer lifetime value – is a prediction of all the value a business will derive from their entire relationship with a customer.

CMS – Content management system – manages the creation and modification of digital content. It typically supports multiple users in a collaborative environment.

CPA – Cost per acquisition / action – The cost per acquisition model applies to a specific “action” determined by the advertiser. Examples would include donations made to your nonprofit, or, the purchase of tickets to an event. Do note that the CPA is very competitive and can carry a higher cost. Similar to the CPL model, the CPA is not guaranteed to deliver in full and may require several optimizations to your ad to ensure success.

CPC – Cost per click – is an internet advertising model used to direct traffic to websites, in which an advertiser pays a publisher (typically a website owner or a network of websites) when the ad is clicked.

CPL – Cost per lead – is an online advertising pricing model, where the advertiser pays for an explicit sign-up from a consumer interested in the advertiser’s offer. It is also commonly called online lead generation.

CPM – Cost per thousand – Cost Per Thousand Impressions
This is the most common method for web pricing. You will be charged for every 1,000 times your ad loads to a page. Keep in mind that a CPM is not a unique view. If one person clicks on 10 pages and your ad loads 10 times, that is 10 impressions, not one. Consider your budget and desired reach before committing to a CPM.

CTR –  Click Through Rate – This is the number of clicks your ad receives divided by the number of times your ad has been shown. The CTR percentage allows you to measure the engagement with your ad. The higher the percentage the higher the engagement.

KPI – Key Performance Indicator(s) – It evaluates the success of your advertising campaign or your marketing operations in general.

ROI – return on investment – compares the profit derived from the invested capital.

SEM – Search Engine Marketing – An example of this are the advertisements that appear on Google Search, Bing Search, or Yahoo Search. Your ad would appear based on the search criteria, keywords, and your max budget.

SEO – Search engine optimization –  is the practice of increasing the quantity and quality of traffic to your website through organic search engine results.

SERP – Search Engine Results Page – In essence, the results page for a Google Search.

Digital Marketing Acronyms can mean something totally different in another market segment.