25 digital marketing acronyms you need to know

There is an astounding amount of acronyms to keep track of today, some of which are crucial to understand as they are so commonly used. We’ve gathered the most important ones that are used in digital marketing contexts (and more) here, how many of them do you know?

1. AI = artificial intelligence
AI is basically smart computers (robots) posing as humans so that we can interact with them. Siri and Alexa are probably the world’s most famous examples of AI, and while they’re very clever, you can’t really have an actual conversation with them.

2. AR = augmented reality
Were you one of the millions that played Pokémon Go that one summer? If so, you’ve tried AR firsthand. Augmented reality means using a camera or projection to manipulate your surroundings, such as Pikachu virtually appearing in your backyard or checking if that IKEA chair (they have an app too) you’re thinking about buying looks as good in your home as it does in your head.

3. API = application programming interface
In very broad terms, APIs allow different applications to communicate with each other. You don’t really need to understand the specifics, but what you do need to know is that they mainly exist to lighten developer workload and often have a large impact on security.

4. B2B = business to business
A business that sells their products or services to other businesses, like Flowbox.

5. B2C = business to customer/consumer
A business that sells their products or services directly to consumers, like Flowbox’s customers.

6. CAPTCHA = completely automated public Turing test to tell computers and humans apart
You know those “I’m not a robot” check boxes that sometimes make you identify traffic lights and crosswalks? Those are CAPTCHAs and they are used, just as they tell you, to make sure you’re an actual human and not a robot.

7. CMS = content management system
The system you use to manage your website content, for example WordPress.

8. CPC = cost per click
Every time you click on an ad, the advertiser has to pay a certain price, which is the cost per click. With CPC, the advertiser doesn’t pay when a potential customer simply sees the ad, but each time the ad is clicked on, even if it’s the same person clicking multiple times. To calculate the total cost, use this formula:
Total cost = CPC x total number of clicks.

9. CR = conversion rate
The percentage of digital visitors that take desired action. Used to measure for example the rate at which a website’s visitors buy something.

10. CRM = customer relationship management
A management system used to maintain the relationship between a business and its customers.

11. CTA = call to action
A direct invitation to act from a business to its customer. Used on digital platforms, usually in form of a button. For example: “buy now”, “find out more”, “subscribe”, “click here” etc.

12. CTR = click through rate
Statistics to measure engagement. The CTR is the percentage of the people that see your content that also click on it.

13. KPI = key performance indicator
KPIs are used to measure how well a company is doing in regard to their strategic business goals. They track performance throughout the entire company: marketing, finance, customer satisfaction, you name it.

14. PPC = pay per click
The digital marketing model in which CPC is applied.

15. PPV = pay per view
Pay per view refers to ads where advertisers pay every single time their ad is seen by a potential customer. Have you ever heard a Youtuber encourage their viewers not to skip the ads? That’s because PPV is only activated after a certain length of watch time, which means if a viewer skips an ad immediately, the Youtuber doesn’t get paid.

16. ROI = return on investment
This one is pretty self-explanatory: it measures the efficiency of an investment, either on its own or compared to others. To find out your ROI, use this formula:
ROI = (profit – cost) / cost x 100

17. SaaS = software as a service
Essentially exactly what it sounds like: offering a software as a service, having customers that subscribe for a cost is known as SaaS. Flowbox, Dropbox, Slack and many others are examples of SaaS.

18. SEM = search engine marketing
A form of PPC advertising where you purchase ads to get featured at the top of the first SERP (see below) of relevant searches.

19. SEO = search engine optimization
SEO is essentially using specific keywords to bump your ranking in Google searches. The goal is to end up on the first search page because this will increase one’s chances of organic traffic as well as general brand exposure.

20. SERP = search engine results pages
This is what shows up when you Google, Yahoo or Bing something: the page of links related to what you wrote in the search bar.

21. UGC = user generated content
Our personal favorite! Working with UGC is what we do best at Flowbox, and it refers to when people post content promoting something out of their own will, without getting paid and without the brand being involved at all. It can be blog posts, Instagram photos and anything in between.

22. UI = user interface
UI is anything on a digital platform that a user interacts with. A good UI results in good UX (see below).

23. USP = unique selling point
If you’re reading this article, you most likely already know how important it is today for a brand to stand out when compared to its competitors. That one thing that makes you different is referred to as an USP and is central in good marketing.

24. UX = user experience
If you’ve made it this far in the article, I’m sure you’ve met someone that works as a UX designer. The term user experience is pretty straight forward, it refers to a person’s complete interaction with your platform.

Bonus: 25. KISS = keep it simple stupid
This one is undoubtedly my favorite, mostly because in the phrase itself, it practices exactly what it preaches. Keeping it simple, stupid is something that I think most of us need to keep reminding ourselves. Less is more and no one wants to read or listen to something that’s three times longer than it needs to be.

For more information, contact:
Bianca Rior, Content Editor, Flowbox
bianca.rior@getflowbox.com