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20 July, 2023

3 Letters: Marketing Abbreviations and what they mean

These shorthand forms simplify complex marketing concepts and metrics, making it easier for marketers to exchange information and data. Some common abbreviations include CTR (Click-Through Rate), CPC (Cost Per Click), ROI (Return on Investment), SEO (Search Engine Optimization), and KPI (Key Performance Indicator). Understanding these abbreviations is crucial for marketers to effectively analyze and optimize marketing campaigns, track performance, and make data-driven decisions.

  1. ARPU/RPU (Average Revenue Per User)

    – The average revenue per user. It shows how much money each customer you attracted to the sales site brings you. It is calculated as the ratio of the total revenue to the number of attracted customers.

  2. B2B (Business-to-Business)

    – A type of commerce where businesses sell products or services to other businesses.

  3. B2C (Business-to-Consumer)

    – A type of commerce where businesses sell products or services directly to consumers.

  4. B2G (Business-to-Government)

    – A type of commerce where businesses sell products or services to government entities or agencies.

  5. CAC (Customer Acquisition Cost)

    – CAC measures the average cost required to acquire a new customer. It helps determine the efficiency of marketing spend in acquiring new customers and whether it aligns with the overall business strategy.

  6. Customer Churn Rate

    – Churn rate measures the percentage of customers who stop using the product or service over a specific period. A high churn rate can indicate potential issues with the product or its marketing strategy.

  7. Customer Lifetime Value (CLV)

    – CLV represents the total revenue a business can expect from a single customer throughout their relationship with the company. It helps understand the long-term value of customers and their contribution to the business’s success.

  8. CMS (Content Management System)

    – A software application or platform that allows users to create, manage, and modify digital content on a website without the need for specialized technical knowledge.

  9. CPA (Cost per Action)

    – Payment for actions, an online advertising payment model in which the webmaster receives payment for specific actions taken by visitors on the website, such as providing contact information, registering, installing an application, and so on. The abbreviation is often used to refer to the industry as a whole.

  10. CPC (Cost per Click)

    – A type of bid where funds are deducted for each click on an advertisement. It is a specific amount paid for a user’s click on search advertising, leading to the advertiser’s website or one of its pages.

  11. CPL (Cost per Lead)

    – Payment for a lead. In this case, the webmaster receives payment from the advertiser for obtaining the contact information of a person interested in the product/service. Often, this abbreviation is used in a broader term – CPA.

  12. CPS (Cost per Sale)

    – Payment for a sale. The advertiser pays the webmaster for completed sales. CPS can involve either a fixed payment or a payment based on a percentage of the order value.

  13. CPM (Cost per Mile)

    – A type of bid where funds are deducted for 1000 impressions. It is a payment model where the price is set for 1000 displays of the advertising block to visitors.

  14. Conversion Rate (CR)

    – The conversion rate measures the percentage of prospects who take a specific desired action, such as making a purchase or signing up for a free trial. A higher conversion rate indicates more effective marketing and a better user experience.

  15. CRM (Customer Relationship Management)

    – A system or strategy used to manage and analyze interactions with customers, with the goal of improving customer retention and satisfaction.

  16. Customer Retention Rate

    – Customer retention rate tracks the percentage of customers who continue to use the product over time. A high retention rate indicates customer satisfaction and product value.

  17. CRO (Conversion Rate Optimization)

    – The process of improving the percentage of website visitors who take a desired action, such as making a purchase or filling out a form.

  18. CTA (Call to Action)

    – a graphical element that motivates and encourages website visitors to take specific actions, such as making a purchase, downloading, subscribing to a newsletter, and so on. The Call to Action indicates what the visitor should do.

  19. CTR (Click Through Rate)

    – the ratio of the number of clicks on an advertisement to the total number of its impressions. The higher this indicator, the better users respond to your creatives.

  20. EPC (Earn Per Click)

    – Earnings Per Click, a metric that reflects the average earnings of a webmaster for one click on their advertisement. This value is opposite to the CPC value, and they are usually compared. If EPC is higher, then you will make a profit from the advertising campaign.

  21. KPI (Key Performance Indicator)

    – Specific metrics used to measure the success and performance of a marketing campaign or strategy.

  22. Leads, Marketing Qualified (MQL)

    – A lead that has shown interest in a company’s product or service and is more likely to become a customer compared to other leads.

  23. Leads, Product Qualified (PQL)

    – A lead that has experienced enough value from a product or service to be more likely to become a paying customer.

  24. LTV (Customer Lifetime Value)

    – The predicted net profit attributed to the entire future relationship with a customer.

  25. Market Share

    – Market share represents the portion of the market a product captures compared to its competitors. It indicates the product’s competitive position and market penetration.

  26. Net30, Net45, Net60

    – A common payout model for webmasters in foreign affiliate programs, where the holding period begins after the end of the reporting period (for example, a week or a month). The numbers 30, 45, and 60 indicate the number of days during which the funds are held before payment.

  27. NPS (Net Promoter Score)

    – NPS is a metric used to gauge customer satisfaction and loyalty. It asks customers to rate their likelihood of recommending the product to others, providing insights into customer sentiment.

  28. PPC (Pay Per Click)

    – An advertising model in which the advertiser pays the webmaster for each click on their placed advertisement, leading to the advertiser’s website.

  29. PPL (Pay Per Lead)

    – An advertising model with payment for a lead. Practically the same as CPL, but from the advertiser’s perspective.

  30. PPV (Pay Per View)

    – An advertising model with payment for views, often used in Popup and Popunder networks.

  31. Product Awareness

    – Product awareness metrics measure the level of awareness and familiarity that the target audience has with the product. It helps assess the effectiveness of marketing campaigns in increasing brand visibility.

  32. ROI (Return On Investment)

    – The income from investments, in other words, the ratio of the profit received from advertising to its expenses. ROI is measured in percentages. If your ROI is above 100%, then your investments are fully recouped.

  33. RPU/ARPU (Average Revenue Per User)

    – The average revenue per user. It shows how much money each customer you attracted to the sales site brings you. It is calculated as the ratio of the total revenue to the number of attracted customers.

  34. Sales Revenue

    – The total revenue generated from product sales is a fundamental metric to assess the overall success of a product marketing campaign. It provides a clear indication of how well the product is selling and if it’s meeting revenue targets.

  35. SEM (Search Engine Marketing)

    – A digital marketing strategy that involves promoting a website or online content through paid advertisements on search engines. It includes paid search advertising (PPC) and other methods to increase visibility and attract targeted traffic to the website.

  36. SEO (Search Engine Optimization)

    – The process of optimizing a website or online content to improve its visibility and ranking in organic search engine results. The goal is to attract more relevant traffic and increase the website’s visibility on search engine platforms like Google, Bing, and others.

  37. SERP (Search Engine Results Page)

    – The page displayed by a search engine in response to a user’s query. It lists relevant websites, ads, and other content based on their relevance to the search terms.

  38. SMM (Social Media Marketing)

    – The use of social media platforms to promote a product, service, or brand and engage with the target audience.

  39. SMO (Social Media Optimization)

    – The process of optimizing social media profiles and content to increase visibility and reach on social platforms.

  40. TDS (Traffic Direction System/ Traffic Division System)

    – A traffic distribution system. In addition to distributing traffic, TDS also collects detailed statistics. One of the most important tools for an arbitrageur.

  41. UI (User Interface)

    – The visual elements and design of a website, app, or product that users interact with.

  42. USP (Unique Selling Proposition)

    – The unique and compelling benefit that sets a product, service, or brand apart from its competitors.

  43. UX (User Experience)

    – The overall experience and satisfaction a user has when interacting with a website, app, or product.

Thanks for your attention! We hope this article will come in handy for you.