Internet Marketing Glossary: A List Of Digital Terms You Need To Know – 2020 Ready (Part 7: Conversion Rate Optimization and Ecommerce)

This Internet Marketing Glossary is a comprehensive digital marketing jargon glossary.

Conversion Rate Optimization and Ecommerce

Above the fold

Above the fold is a term used to describe the content that is immediate visible when opening up a website or application.

The ‘fold’ is considered as an invisible line drawn horizontally across the screen at the bottom of the immediate visible content.

Below the fold

Below the fold is a term used to describe the content that is not immediately visible when opening up a website or application.

The “fold” is considered as an invisible line drawn horizontally across the screen at the bottom of the immediate visible content. To see below the fold content on a website, you are required to scroll down.

Call-to-Action (CTA)

A CTA, or Call to Action, is an interface element that motivates a user to commit an action you are telling them to do. This element is vital to conversion rate optimization (CRO).

The main button, link or other UI element that tells the user to take an action that ends with a conversion. A “Buy Now” button on any shopping websites, a “Sign Up” button, a “Download Now” on an app landing page are all kinds of Call to Action.

Conversion Rate

Conversion rate is the number of users performing a desired action, whether filling out a form, buying a product, or whatever goal of the web page may be.

For instance, let’s say there are 1,000 visitors to a specific web page through a PPC (pay per click) ad.
10 of the 1000 visitors will commit to the action intended (purchase, survey, education are examples), that means the conversation rate for the particular ad is %0.01.

In essence, the larger the conversion rate, the more successful the web site. The growing pain most companies face is a decaying conversion rate as they scale their business higher with more traffic. To tackle this, marketers and businesses will trial experiments and tests to improve their conversion rate.

Conversion is a vital element in a brand’s paid search strategy. Across the digital landscape, the usual conversion rate is 2.35%. The top 25% have a conversion rate of 5.31% or higher, while the top 10% have conversion rates of 11.45% and above.

Open Rate

An open rate is a percentage of the amount of recipients who have opened and looked through your email.

For instance, if you sent an email to 1,000 people and 500 of them opened it, your open rate would be 50%. If you sent an email to 300 people and 3 of them opened it, your open rate would be 1%.

The Open Rate measures the importance and context of an email by getting the total number of unique clicks, dividing it by the total number of unique opens, and then multiplying by 100. To put it simply, it just means how many people have clicked your email. However, open rate tracking is not an exact science.

An “open” is registered when a tracking pixel (single pixel graphic) loads. A common problem that all email marketers will face is that not all email service providers or load graphics regularly. It means that you may be getting emails that are opened but not registered.

Open Rate is particularly effective for tracking ads where a higher percentage of images is used (higher image-text ratio) because open rates vary and stand as a more useful measurement of content and creative.

Click Through

A click through is an act of clicking through an online ad to the merchant’s destination. A click-through appears on the last-touch channel.

For instance, let’s say that a visitor comes to your website daily, with each visit coming from a different marketing channel:

  • Day 1: Organic Search
  • Day 2: Display
  • Day 3: Paid Search
  • Day 4: Display
  • Day 5: Organic Search
  • Day 6: Display
  • Day 7: Paid Search

The First-Touch Channel report would present 1 new engagement for Paid Search while the rest would present 0 new engagements. The Last-Touch Channel report would reveal 2 click-throughs for Paid Search, 3 for Display, and 2 for Organic Search. While a click-through is usually the most prompt response to an ad, it is not the only interface. Visitors have an option to type a company’s URL straight into the browser bar or a search engine box.

Click Through Rate

A click through rate, or CTR, is a metric that calculates the number of click-throughs advertisers get on their ads per number of impressions, expressed as a percentage.

The formula to get a CTR is: Total ad clicks / Total impressions x 100

Getting a high CTR is essential to the success of your PPC (pay per click) because it directly impacts both your Quality Score and the amount you pay each time someone clicks your search ad. It is necessary to differentiate what a CTR does and does not measure.

The CTR computes the percentage of people who clicked on the ad to arrive at the merchant site; it does not include the people who did not click, yet arrived at the same site because of seeing the ad. With this, the CTR may appear as a measure of the prompt response to an ad, but not its total response. The only exception would be ads that display no identifiable information on the merchant site. In these cases, the click rate is the same as the overall rate.

Split Test

Split testing (also known as multivariate testing or A/B testing) is a practice of performing controlled and randomized tests with the specific aim of optimizing a website metric, like clicks, form completions, or purchases.

Incoming traffic to the site gets shared between the original (control) and the various variations without any of the visitors knowing that an experiment is taking place. Split testing contrasts two or more different strategies for opt-in forms in a controlled experiment. By experimenting and then analyzing results, you can gauge the behavior of visitors and subscribers and see where they respond best to, which allows you to enhance your email marketing campaigns. This marketing strategy is normally utilized to test changes to certain parts of a website such as registration pages, signup forms, calls to action, etc., where a measurable goal can be improved. For example, experimenting changes to an online checkout flow would help us to gauge what factors increase conversions and will lead to more orders for the merchant.

Average Order Value (AOV)

Average Order Value, or AOV, is an e-commerce performance metric that calculates the average dollar amount expended every time a visitor or customer puts an order on a website or mobile app.

The formula for calculating AOV is simply: AOV = Revenue / Number of orders.

For example, in July, your site store’s sales were $40,000, and you had a total of $2,000 orders. $40,000 divided by $2,000 is $20. Therefore, your store’s July AOV is $20.

AOV is calculated using sales per order, and not per customer. For instance, your customer bought yesterday and today. Both orders are factored into AOV, individually.

AOV is a performance metric that provides insight on how your gross profit or profit margins are doing. Let’s say you were selling three bags worth $10, $15, and $20 respectively, and the AOV is $13. This clearly indicates that majority of your sales come from the $10 bags.

To increase your AOV, you could use some proven methods such as:

  • Cross-selling (add items to whatever the customer is already buying)
  • Upselling (giving a better, pricier option)
  • Volume discounts (get more for less)
  • Free shipping
  • return policy


eCommerce, is that act of buying and selling goods and services over the internet. Any business participating in online sales is relevant to the eCommerce industry.

These transactions can be business-to-business, consumer-to-consumer, business-to-consumer, or consumer-to-business.

Examples of eCommerce:

  • Online Shopping – buying and selling of goods on the web. Merchants have a digital “store”where the buyers can go to, browse, and purchase them through mouse clicks. E.g. Amazon
  • E-Payments (Electronic Payments) – payment processors and payment gateways; helps alleviate the long process of writing and mailing checks.
  • Internet Banking – banking done in the comforts of your phone
  • Online Ticketing – from air tickets to movie tickets, just about any ticket can be booked online. This saves the inefficiency of lining up at ticket counters.

Types of eCommerce:

  • Business to Business (B2B)
    An example of this would be a company ordering pamphlets, business cards or promotional material from an online business such as, or
  • Business to Consumer (B2C)
    An example of B2C is a a direct to consumer purchase such as electronics or hobbycraft purchased from a business, manufacturer or vendor online.
  • Consumer to Consumer (C2C)
    An example of consumer to consumer is a growing type of eCommerce around the globe. In C2C, consumers can use online marketplaces such as Etsy or eBay to sell or trade.

Cart / Shopping Cart

A shopping cart is on an online merchant site is a piece of software which got its term from a grocery store shopping cart.

Its main purpose is to assist with the purchase of a product or service. Normally, the user puts the products or services in the cart and “checks out” when he is done ordering. The software then takes the payment and proceeds with the data distribution to the merchant, payment processor, and related parties. Shopping carts are vital for a merchant’s site since it connects the gap between shopping and buying.

A shopping cart normally contains these features:

  • Product data storage
  • A gateway for ordering, catalog, and customer service
  • Rendering of product data for user display

There are two types of shopping carts online:

  1. Hosted shopping carts – This type belongs to third-party firms who “hosts” and is responsible for server data, backup, maintenance, upgrades, etc. The good thing about this feature is that it’s free. The only con is the visitors are redirected to another site for payment processing.
  2. Licensed shopping carts – This type belongs to owners who build their own and customize it according to their brand and customer needs. Since a licensed shopping cart is more flexible than a hosted one, it means that it will cost more.

Social Media Marketing

Social media marketing is a method for businesses to connect with their target demographics over the internet through social media platforms like Facebook, Twitter, Instagram, and LinkedIn.

The main purpose of social marketing is to raise brand awareness and promote specific products. SMM also seeks to establish social media presence for the brands, create shareable content and ads, and connect with the community through customer service and campaigns.

Other uses of Social Media Marketing include:

  • Increase of referrals or sales leads
  • Increase sales of products or services
  • Providing customer service
  • Establishing community growth by means of feedback
  • Building of the brand’s page through word of mouth
  • Updating the community of the business through special events and contests

The advantages of social media networking:

  1. Cost – Advertising your brand through traditional media and other types would cost you big time. With social media, all you need is a page and shareable content. You can also advertise there and would cost less.
  2. Audience Engagement/Community Growth – People like it when their voices are heard. So, having a brand engage with the community makes them feel special and “heard.”


Originally posted 2019-03-14 21:37:35.

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