Digital Marketing - Terms & Definitions - Explained with Examples
If you are looking to understand the basic definitions of marketing, and their underlying concepts – This blog is for you.
We have a brief definition with formulas, and examples along with a short video to explain it further.
We hope you enjoy reading. 🙂
What is CTR - Click Through Rate?
Click Thru Rate – Number of people who click as compared to the number of impressions.Â
It is used in different use cases – YouTube Thumbnail efficiency, AD performances, Email Open rates, etcÂ
What is CPC - Cost Per Click?
Amount of money spent to get one click is called Cost Per Click.Â
Used to measure performance of ADs, and compare them amongst peers.Â
What is AD Frequency?
AD Frequency is the average number of times an AD / Advertisement has been shown to a person, and this number helps marketers identify ADs that are being shown too much, and change that AD.
High AD Frequency can cause AD Fatigue, and people would want to avoid high AD Frequency, as people may get irritated, and start hating the brand, instead of loving them.
What is CAC - Customer Acquisition Cost?
CAC or Customer Acquisition Cost is the amount of money a business/marketer spends to acquire a customer. So for example – If I spend $1000 in ADs, and I get 10 customers, in this case – My CAC would be $100.
Customer Acquisition cost is measured to track AD / Marketing campaign performance, and if the CAC exceeds a certain number, then it’s a signal for a marketer or a business owner to shut the AD, or optimise the AD.