Jargon Buster – Know your TLAs

TLAs (Three Letter Acronyms) and Jargon Busting Tips

By Rhian Harris

Digital marketing and ecommerce are a minefield TLAs (Three Letter Acronyms), so here’s your guide to demistify the jargon…

This is a working list, so check back for more!

You might also find this article of interest.

ATV – Average Transaction Value or Average Order Value (AOV)

A calculation of average revenue for all transactions, dividing the total revenue by total conversions.

CPA – Cost Per Acquisition or Cost Per Action

A direct response mechanism where the advertiser pays for each specified action linked to the advertisement e.g. a purchase or form submission. This is the typical model for affiliate marketing.

CPC – Cost Per Click

Advertising sold on a per click basis. This media is therefore free when an advert / link is simply viewed, but it is up to the media owner and advertiser to negotiate a price once it is clicked. The most common example of CPC advertising is search engine
PPC (Pay Per Click) – see below.

CPM – Cost Per Mille or Cost Per Thousand (CPT)

This refers to online advertising that is purchased on the basis of showing the ad to one thousand viewers. This is a non-performance based model for buying advertising space as the inventory is negotiated up-front and therefore not charged on an action unlike a CPC or CPA deal.

CTR – Clickthrough Rate

A measurement of success for online advertising campaigns, defined as the number of clicks on an ad divided by the number of times the ad is shown (impressions), expressed as a percentage. This metric also applies to email marketing with the total clicks divided by the number or emails delivered or opened.

CPL – Cost Per Lead

Similar to a CPA deal but focusing on list building and data capture. The advertiser is only paid for each new name (or lead) that is generated via the campaign.

eCRM – Electronic Customer Relationship Marketing

Maximising the management of customers through electronic means to build loyalty and grow relationships. Traditional CRM takes the format of direct mail, and eCRM moves the marketing principle online taking email marketing and other customer information into account.

EPC – Earnings Per Click

Typically referring to affiliate marketing, this is the total commissions paid to all of an advertiser’s publishers divided by the total clicks over the same period. This is usually provided as an incentive to attract new affiliates as they can calculate the¬†efficiency of an advertiser’s program and the potential revenue to be earned.

HTML – HyperText Markup Language

The main coding language for displaying elements of a web page and other information that can be displayed in a web browser.

KPI – Key Performance Indicator

A method by which to evaluate success of a piece of activity or overall performance. KPIs are usually SMART and therefore measurable, and included within a business’ objectives.

PPC – Pay Per Click

Typically, this is the main source of revenue for Google, Bing or Yahoo!, but also other search engines around the world. It refers to the ‘sponsored’ adverts / results on a search engine and the user is charged for a click. Costs are determined through the maximum bid an advertiser is willing to pay in conjunction with a number of other factors. These factors include but are not limited to relevancy, quality score, average position, geo-location, time of day, and clickthrough rate.

SEO – Search Engine Optimisation

The process of improving the visibility of a website or a web page in a search engine’s ‘natural’ or un-paid (‘organic’) search results through editing content, HTML and, increasing relevance to specific keywords, removing barriers for search engine robots to index the page, or increasing backlinks, or inbound links. SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience.

SERPs – Search Engine Results Pages

The listing and link to a web page that is returned by a search engine in response to a user querying a particular keyword.