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25 Online Marketing Abbreviations You Must Know
If you've already started dealing with social media marketing or online marketing in general, you've almost certainly stumbled across one or the other abbreviation from our list and thought "F*ck, what is everyone talking about?". There are a lot of them in marketing and English words are behind almost all of them. In your confusion, you have probably started to Google the individual abbreviations to understand what it is all about.
API, CPM, ROI, UGC - you're wondering how to keep track of all the abbreviations? Make sure you save this post right now under your favorites and our little encyclopedia is just a click away from now on.
We have examined the 25 most frequently used abbreviations for you and explained them simply. This is how you get the ultimate perspective!
We have arranged the abbreviations alphabetically so that you can quickly find what you are looking for.
The 25 most important abbreviations
1. AOV: Average Order Value
Average Order Value is the average value of an order over a specific period of time. To calculate AOV, divide the total value of all orders by the number of individual orders.
2. API: Application Programming Interface
An API is a programming interface that links different software systems together. This enables data to be exchanged between them. An API can be used, for example, to exchange data between different websites and programs. In online marketing, APIs are used in particular for tracking your website visitors. Because they can be used to transfer the data from your website to various analysis tools.
3. B2B: business to business
B2B refers to the relationships between several companies.
4. B2C: Business to Consumer
B2C, on the other hand, is about the relationships between companies and consumers.
5. CAC: Customer Acquisition Cost
Customer Acquisition Costs are the customer acquisition costs. How much does a new customer cost you? To calculate this, you first add up all the costs over a specified period of time that are related to customer acquisition, e.g. marketing expenses, salaries of your marketing team, etc.. Then you divide this by the number of actually spent in this period acquired new customers. The smaller the amount, the better - of course, right?
6. CMS: Content Management System
A content management system is software that you can use to easily create and edit the content (i.e. the content) of your website. This can be text, videos or images, for example. Examples of content management systems include WordPress, TYPO3 or Webflow.
7. CPC: Cost per click
Pay-per-click (PPC) is often used for billing in online marketing. The advertiser thus pays per click on the advertisements they place. CPC is then the exact amount paid per click. However, CPC and PPC are often used interchangeably.
8. CPI: Cost per Impression
This is also a billing model in online marketing. In contrast to CPC, you do not pay per click on the ad, but per impression. The advertiser pays when the ad is shown to a visitor.
9. CPL: Cost per lead
A lead is a qualified contact of an interested party that can be used directly for customer acquisition (e.g. full name and e-mail address). So CPL is the price you pay as a company for a qualified contact. This model is used in partner programs such as affiliate marketing. For example, you pay a commission to the operator of the website, through which interested parties are forwarded to you when they register for your newsletter or fill out a contact form.
10. CPM: Cost per mille
This is the price per 1,000 impressions (mille = thousand). The only difference to the CPI is that the price is not given per individual impression, but per 1,000 impressions.
11. CR: Conversion Rate
The conversion rate is the percentage of visitors to your website who take a desired action. Mostly interested in the percentage that buys from you in the end. But there are other types of conversions, such as subscribing to your newsletter or downloading your e-book. Of course, the goal is always to achieve the highest possible conversion rate.
12. CRM: Customer Relationship Management
Translated, customer relationship management means customer relationship management. The term therefore includes all measures related to the design of relationships and interactions with existing and potential customers. CRM tools can help you with this. A CRM tool is software that you can use to centrally manage and process customer information. You can also control and automate marketing measures.
13. CTA: Call to Action
In German, call to action - the customer is asked to perform a specific interaction. Examples of this are “buy now”, “click on the link” or “download now”.
14. CTR: Click Through Rate
The click through rate describes the ratio of clicks on a specific ad to the number of impressions, i.e. how often the ad is shown. To calculate it, divide the number of clicks by the total number of impressions and multiply by 100. So if your ad is shown 1,000 times and gets 30 clicks, you get a 3% click-through rate.
15. D2C: Direct to Consumer
Direct to consumer means direct sales. This means that the sale of products or services from the manufacturer to the customer takes place without an intermediary. The best way to do this is through your own online shop or an e-commerce platform like Amazon.
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16. KPI: Key Performance Indicator
Key Performance Indicators are metrics you use to measure the effectiveness of different actions. In order to make your success measurable, you should set certain values as targets and always keep an eye on the development of the relevant KPIs. For example, to measure the success of the ads you place, important KPIs are, for example, the conversion rate and the return on ad spend.
17. ROAS: Return on Ad Spend
The ROAS is the ratio of profit from your ads and the budget used. To do the calculation, simply divide your revenue by your expenses. With a budget of €5,000 and a turnover of €20,000, your ROAS is 4.
In order for your campaign to make economic sense, the ROAS should definitely be above 1, otherwise you will have spent as much or even more on your ads than you generated through them.
18. ROI: Return on Investment
The ROI describes the relationship between investment and profit. It is given as a percentage. To calculate your ROI, divide your profit (return) by the investment and multiply the result by 100.
If you have invested €10,000 in your marketing and made a profit of €100,000, the ROI is 10%.
19. SEA: Search Engine Advertising
Search engine advertising means search engine advertising. This means paid ads that are placed to match a search term. The most relevant in this area are Google Ads. SEA is a classic part of a performance marketing strategy.
20. SEM: Search Engine Marketing
In German search engine marketing. This includes all measures through which your website is classified as relevant in the results of a search engine and is therefore displayed high up. Search engine marketing consists of paid advertisements (SEA) and search engine optimization (SEO).
21. SEO: Search Engine Optimization
Translated: search engine optimization. SEO includes all organic (non-paid) actions that result in increasing your website's visibility in search engine results. This includes, for example, using relevant keywords.
22. SERP: Search Engine Results Page
This refers to the search results page that you see after you enter a search term.
23. SMM: Social Media Marketing
This includes all marketing measures that use social media such as Facebook, Instagram or TikTok. These can either be paid ads or unpaid actions.
24. SOV: Share of Voice
The share of voice is the proportion of your advertising in the total advertising shown in your industry. In the context of online marketing, this is about the visibility of your brand on the web.
25. UGC: User Generated Content
User Generated Content means something like "content created by the user". In contrast to content created by brands, this is considered to be more authentic and trustworthy. These include, for example, reviews, videos, pictures or comments. Strong brands with a loyal community often have a lot of UGC on social media. However, it is also often "provoked" by free products and then used as an advertisement.
