At Helix House, we use a lot of industry jargon that may not be the common tongue for most. We try to catch ourselves and explain along the way, but sometimes we don’t even notice if we slip up and throw in a CTR, ROI, KPI, or slug into the mix. That’s why we’re compiling a list of digital advertising terms and defining them for you today.
This ongoing project will be updated each month. If you have any suggestions, comments, or additions, please let us know!
A/B testing is a common strategy used in digital advertising to see if one variation of an advertisement campaign or landing page is working better than the other. The two campaigns run side-by-side to gather data. This data is analyzed and used to determine which campaign is performing better, meaning which campaign is bringing in more sales for less money.
Once a winner is selected, it is then used as the next control and compared with another version to isolate and identify the ad element that causes the audience to respond favorably to the ad. A/B testing is considered “complete” when target key performance indicators are exceeded.
An audience or demographic in digital advertising is your ideal customer base. It’s who you want to market your product/service to and who typically will buy from you. For example, your general audience profile could look like this:
Your audience will look different depending on which platform you use to run your ads. Facebook, for example, can narrow down your audience even further by listing hobbies and interests.
A bounce rate is the rate at which people leave your website/landing page after not interacting with it. The bounce rate expresses such visits as a percentage of the total visitor sessions, within a specific time frame
A bounce is when someone loads your page and immediately closes it. For example, say your website was opened 100 times in one day and 75% of visitors leave the page without interacting with it. The bounce rate will then be 75%.
This metric determines how successful a page is performing without the need of a heat map, as it is a quick indication if people are impressed (a low bounce rate) or dissatisfied (a high bounce rate) with your website or landing page.
Your brand is who you are. It’s your specific voice (how you speak to your audience on various platforms), your colors, your font, your imagery — it’s what makes you, you. This digital advertising term is hard to define as it is so broad. Chances are, if it’s not your product or service, then it’s part of your brand.
A brand is not your products or services. It is what makes your business recognizable online. For example, Doggy Brace’s brand is very subtle — green colors to represent nurturing and healing, with high-quality images of happy pups to convey how easy and comfortable their dog ACL braces are. Their tone is more light hearted and fun as well. That is their brand, boiled down to the bare minimum.
The extent or level to which a potential consumer can recall and identify a particular product or service. The stronger your brand, the more likely you are to build higher brand awareness.
For example, you can identify what company is “the golden arches” without much more context. Or if you see an apple on the back of a phone or laptop, you know exactly what brand made that piece of tech. That is brand awareness.
A call to action (CTA) is a phrase that calls people to act. It’s the roadmap that helps lead your customers to where you want them to go. It’s the “Call now” and “Sign up today” that you see commonly on ads, websites, landing pages, and more.
Display advertising is when graphic ads are shown on a web page. The term originated in newspapers, and the principles still apply. Display ads can be graphics, videos, interactive images, and more.
In the most simplest of terms, a keyword is what users search in Google and other search engines. It’s the “best cat food” and “digital advertising near me” queries that people want to know about.
Keywords are specifically chosen by advertisers to boost their website’s, blog’s, and ad campaign’s performance. The better you perform using that keyword, the higher your website will rank on Google.
In paid search advertising, the position of the ad within the results is determined by bidding. The highest bidder on a keyword usually gets the top position.
Key performance indicators is a measurable value that demonstrates how effectively a company is achieving key business objectives. They’re your goals — you want to hit a certain KPI to know if a campaign is profitable or not.
A landing page is where users are directed to after they click on a display or paid search ad. Landing pages are not your main website. They are built specifically to generate leads and convert them into paying customers.
A lead is a potential customer. In digital advertising, a lead is someone who has given you their contact information, signed up for your services, submitted a form, or called.
The placement of ads within search engine results, such as Google, Bing, or Yahoo.
Return on investment or return on costs is a ratio between net income and investment. A high ROI means the investment’s gains compare favorably to its cost. For example, say you’re investing $1,000 into an ad campaign. That particular campaign brought in $3K in sales. Your ROI is 3:1, which is profitable.
This blog of digital advertising terms is an ongoing project and will be continued to be updated with various industry-based and service-based terms. Last updated: Oct. 5, 2021.