- Pay Per Click (PPC): Imagine you’re selling lemonade and you put up signs around town. Instead of paying for all the signs at once, you only pay when someone sees a sign and comes to your stand. That’s PPC – businesses pay only when someone clicks on their online ad.
- Bounce Rate: Imagine you invite friends to play, but some peek inside and leave without playing any games. The bounce rate is how many people visit your house (website) but leave right away without staying.
- Search Engine Management (SEM): Imagine you have a lemonade stand and pay for a special spot at the front of the park so everyone sees it right away. SEM is when companies pay to have their ads or websites show up at the top of search results on the internet.
- A/B Testing: Imagine you want to know if your friends like lemonade or orange juice better, so you give one group lemonade and the other group orange juice to see which they choose. A/B testing is like that – companies try two different things to see which one works best.
Don’t want to sound negative, but this post and all the replies seem automated and don’t add much. If you’re in Digital Marketing, these are basic terms…
Is it correct? I’ve never heard of the M in SEM meaning management, always marketing.
Many positive comments here have default user names.
Dead Internet Theory is still going strong.
Great starting point… I expanded it a bit with more terms 
Here are a few more easy-to-understand digital marketing and growth hacking terms using the lemonade stand example:
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Lifetime Customer Value (LCV or LTV): Imagine you have a friend who loves your lemonade and buys it every time they visit your stand. Over the summer, they keep coming back and buying more. Lifetime Customer Value is how much money you make from that loyal friend over the whole summer (or even longer). Businesses track how much a customer is likely to spend with them during their lifetime.
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Customer Acquisition Cost (CAC): Let’s say you spend $5 putting up posters all over town to get people to come to your lemonade stand. If you end up getting 10 customers, your Customer Acquisition Cost is $0.50 per customer (the $5 you spent divided by the 10 customers). CAC helps businesses understand how much it costs to get each new customer.
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Conversion Rate: Imagine 100 people walk past your lemonade stand, but only 10 people stop to buy lemonade. Your conversion rate is 10% – the percentage of people who actually take the action you want (in this case, buying lemonade). Online, this refers to how many people visit a website or ad and then take action (like making a purchase or signing up).
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Churn Rate: Imagine you have 10 regular lemonade buyers, but by the end of the month, only 7 are still coming back for more lemonade. The churn rate is the percentage of customers who stop buying from you over a certain period. Businesses use this to measure how many customers they’re losing over time.
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Click-Through Rate (CTR): Let’s say you hand out 100 flyers, and 20 people come to your stand because they saw your flyer. Your Click-Through Rate is 20% – it’s the percentage of people who see your ad (or flyer) and take action by visiting your stand (or website).
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Return on Investment (ROI): Imagine you spent $10 on lemons and sugar, and you made $30 from selling lemonade. To calculate ROI, you subtract the $10 you spent from the $30 you earned, giving you a $20 profit. Then, you divide that profit ($20) by the cost ($10), so your ROI is 200%. This helps businesses see how much profit they’re making compared to how much they’re spending.
These terms are important in understanding how businesses track their marketing success and improve their strategies!
Come back with chapter 4 please and I’ll surprise you with chapter 5 (this is like Photoshop tennis) *of course unused chatgpt lol
Hey, it’s very easy to understand even for a beginner. Thanks for sharing!
Thanks, Stay tuned for the second part.
Great explanation! I hope you continue this by adding more terms.
Sure, follow us for more. We will keep posting.
Is there a website for terms definitions or a Google doc?
Yes, we have a community site with those https://lookingformarketing.com/definitions
Great guideline! Thanks for sharing
I have a confusion, do correct me please. But as far as I know SEM doesn’t guarantee you the top spot every time. Right?
You’re correct. Knowing isn’t the only thing you need to do, and even then, there’s no guarantee either way. You can work hard with a highly competitive keyword, get close, and still not hit that top position.
You should definitely post more content like this!
Thank you for the information even though it is AI generated