SOME IMPORTANT DIGITAL MARKETING CONCEPTS YOU MUST KNOW IN 2024
👉 Click-Through Rate (CTR):
CTR measures the effectiveness of an ad campaign.
Formula: (Clicks / Impressions) x 100%. High CTR indicates a compelling ad.
👉 Conversion Rate:
It shows the percentage of visitors who take the desired action.
Formula: (Conversions / Clicks) x 100%.
A high conversion rate means a successful campaign.
👉 Cost Per Click (CPC):
CPC is the cost of each click on your ad.
Formula: Cost / Clicks. Lower CPC can save your budget.
👉 Return on Investment (ROI):
ROI measures the profitability of your marketing efforts.
Formula: (Revenue — Cost) / Cost x 100%.
Positive ROI means your campaign is profitable.
👉 Customer Acquisition Cost (CAC):
CAC calculates the cost to acquire a new customer.
Formula: (Marketing Costs / New Customers).
👉 Bounce Rate:
The bounce rate shows the percentage of visitors who leave your site without engaging.
Formula: (Single-page visits / Total Visits) x 100%.
A lower bounce rate indicates user engagement.
👉 Social Media Engagement Rate:
It measures the interaction on your social media posts.
Formula: (Engagements / Followers) x 100%.
Higher engagement rate means a more active audience.
👉 Quality Score:
For PPC ads, Quality Score impacts ad rank.
Formula: Click-Through Rate x Ad Relevance x Landing Page Quality.
Higher score lowers costs.
👉 Email Open Rate:
Open rate reveals the percentage of people who open your emails.
Formula: (Opens / Sent) x 100%.
High open rates are crucial for email marketing success.
👉 Cost Per Acquisition (CPA):
CPA determines the cost of acquiring a customer.
Formula: Cost / Conversions. Lower CPA is cost-effective.
👉 Search Engine Ranking Position (SERP):
SERP position reflects where your website ranks on search engines.
No specific formula, but higher is better for visibility.
👉 Engagement per Post:
Measure the likes, comments, and shares on a single social media post. Formula: (Likes + Comments + Shares).
Higher engagement is a positive sign.
👉 Organic Traffic:
Organic traffic is the visitors who find your website through non-paid search. No specific formula, but it’s crucial for SEO success.
👉 Customer Lifetime Value (CLV):
CLV is the total revenue a customer brings over their entire relationship with your business.
Formula: (Average Purchase Value x Average Purchase Frequency x Customer Lifespan). Higher CLV is profitable.
👉 Ad Impressions:
Impressions indicate how often your ad is viewed. No specific formula, but it’s important for brand visibility.
