Just as business owners are finally beginning to understand marketing and its importance, an entirely new marketing concept has begun to take hold and is steadily growing in relevance and importance. This new concept is digital marketing. Although traditional marketing strategies such as work of mouth, print, signage and others are still relevant, digital marketing is an entirely new way to reach your target audience with engaging and important content.
One of the greatest benefits of digital marketing is your ability to target a specific audience with a specific message. This means that you can market to the right people and your chances of them engaging with your message is significantly increased. Most savvy business people would agree that this is exactly what you want from a marketing strategy.
Modern digital marketing is relatively new; therefore there is a great deal of terminology and context to understand before you can truly analyze any of your results.
Here are 5 terms that are important to understand when running a digital marketing strategy:
Stated simply, impressions are the number of times someone sees your ad. For example, if you have a great video posted online with 1,000 impressions, this means that 1,000 people have seen your video. This means that your video has been exposed to these people, not that these people have necessarily watched it or engaged with it. Digital marketing campaigns are often defined by impressions because a platform or company can promise you that 1,000 people will see your ad, however they won’t promise you how may people are going to interact with it.
A click through number is the number of people who click your digital ad, following your call to action. That means that if your call to action is “Read More on our Website” and 1,000 people see it, but only 30 people click that button to go to your website, your click through number is 30.
Length of Watch
Length of watch is used when referring to a digital video ad. Many have seen these video ads pop up prior to watching a different video or reading a relevant article. Most of these video ads have an option to “Skip this Video” after 15 seconds, even if the video ad is 2 minutes long. For example, if 100 people see this ad, half of them skip after the required 15 seconds and the rest watch it for the full length, the “length of watch” will be the average of 0:15 and 2:00.
ROI (Return on Investment) is a common term for both conventional and digital marketing. The reason it is so important to understand when it comes to digital marketing is that it is often much higher and more measurable in digital marketing. It is much simpler to track calls to action and click throughs.
Understanding CPM (cost per thousand impressions) is incredibly important because this is how you pay for your digital marketing campaign. CPM stands for cost per thousand impressions. Simply put, if you are paying $20 per CPM, this means that it costs you $0.02 each time someone sees your ad.
Now that you can successfully understand some of the key terminology to begin, run and interpret the results of a digital marketing plan, you can feel confident knowing if this is the next step in your marketing plan. Because video is the number one most engaging online tool for advertisers, combining engaging video with your digital marketing strategy can almost guarantee that you will see the highest customer engagement as well as the greatest return on your investment.Click here to learn more about your digital marketing options with Spotburner.