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Digital, Direct and Email marketing terminologies

A/B split A type of two-way test used for two variations of one element of the same mailing
package, press ad or online execution to determine which version will bring in greater
response.

Above the fold The part of a web page that is visible once the page has loaded - normally the top part. It
is a key section of the page because it should grab a casual visitor's attention. The term
comes from the newspaper industry.

Above-the-line Out-of-date jargon which is best avoided. Derived from traditional accounting practice
that treated advertising through television, radio or published media as 'above-the-line'
expenditure. Other advertising, such as direct marketing, was accounted for 'below-the-
line'.

Acceptable use policy A computer policy which outlines the purpose as well as who and how people may use the
resource. It will include the policy on security and privacy.

ACORN An acronym for A Classification Of Residential Neighbourhoods. A consumer list


selection and targeting system used, as its name suggests, on residential property
information in minimum areas of approximately 150 households (an enumeration district).

Acquisition cost The advertising cost of obtaining a customer or enquiry.

Ad banner An advertisement on a web page that links to an advertiser's website or buffer page. Ad
banners are the most common unit of advertising on the web and costs often depend on
the amount of page views the website (and thus the ad banner) receives.

Ad impression Similar in concept to a page impression; describes one viewing of an advertisement by a


single member of its audience. The same as ad view, a term that is less commonly used.

Affiliate A company promoting a merchant typically through a commission-based arrangement


either direct or through an affiliate network.

Affiliate management In affiliate marketing, tracking and reporting software used to manage affiliate
software

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Affiliate programme A relationship between two companies whereby the host pays a percentage or a flat fee
for all traffic or purchase requests routed through an affiliate site. (Source: Marketing
Week)

Affinity marketing Selling products or services to customers on the basis of their established buying patterns.
The offer can be communicated by email promotions, online or offline advertising.
(Source: www.iab.net)

Attention, Interest, (AIDA) Copywriting formula describing the stages by which to engage readers and elicit
Desire, Action a response or action.

Average order cost The total cost of orders, divided by the total number of orders.

Average order value The total value of orders divided by the total number of orders

Bait advertising Advertising that offers unusually low prices for items in order to draw a customer into an
online store where the low-priced item is usually not available. Customer is convinced to
buy a similar but more expensive product.

Blogging Publishing a diary or personal log on the web (web-blogging) or mobile device (mo-
blogging).

Bounce rate The percentage of visitors who stay on the site accessing one page only.

Brad ‘British Rates and Data’ a monthly reference guide of advertising and media information.
(Source: IDM Marketing Guide 2006)

Brick-and-mortar A traditional business operation that commonly deals with its customers face-to-face in an
office or store that the business owns or rents (e.g. a retail store or a bank branch).

CATI See Computer Aided Telephone Interviewing.

Channel conflict Channel conflict can occur when a company promotes or sells similar products through
different channels to the same target market, such as books from a shop or from a website.
It can cause problems of pricing and issues with the middleman.

Channel reach (TV) The number or percentage of a potential audience who watch a channel at all over a
particular period of time (typically one day, week or month).

Channel share (TV) The percentage of the viewing audience watching one channel as opposed to any other
channels, over a given period of time.

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Churn The rate at which a customer leaves a service or site. This is a major concern for most
businesses and online businesses who try to provide a 'sticky' service with regular interest
to keep users revisiting or repurchasing.

Churn The number or percentage of disconnecting or defecting subscribers.

Click stream The click stream shows the number and which websites a user has visited in a session or
even more than one session. Additional information on the user can also be collected
through the use of cookies

Click-through rate The percent of individuals viewing a web page who click on a specific banner ad
appearing on the page. Overall click-through rates have declined substantially since the
early days of electronic commerce on the web. (Source: Marketing Week)

Co-branding Loosely, the appearance of two company names on a web page or website, implying that a
product or service is provided jointly by the two companies. Often the site belongs to a
company with a significant customer base, market awareness or marketing power.

Consumer Internet A law that regulates how interactive computer services can use personal information input
Privacy Protection by users. For the purposes of this bill, interactive computer services are essentially
Act of 1997 internet service providers

Conversion A marketing term for where your prospects or website visitors become buyers, usually
expressed in terms of percentage conversion. In TV parlance, refers to the relative
efficiency of a channel, programme or campaign in reaching a sub-audience compared to
a broad audience, normally expressed as an index.

Cookie A small bit of software placed on a user's web browser by a web server. The browser
stores the software in a text file called cookie.txt. It sends a message back to the server
each time the browser requests a page from the server. The main purpose of cookies is to
identify returning users and to store browser session data.

Cost per acquisition (CPA) How much you can afford to spend to acquire a customer.

Cost per click (CPC) Cost of advertising based on the number of clicks received. (Source: www.iab.net)

Cost per customer (CPC) The cost an advertiser pays to acquire a customer. (Source: www.iab.net)

Cost per enquiry (CPE) The cost per enquiry is calculated by dividing the total cost of a mailing by the
number of enquiries identified as from that mailing.

Cost per lead (CPL) Cost of advertising based on the number of database files (leads) received. (Source:
www.iab.net)

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Cost per order (CPO) Total cost of a mailing divided by the number of resultant orders received.

Customer journey A series of touchpoints experienced by the customer across various media and channels
over time – either a specified period of time or throughout the customer's lifetime
relationship with the brand or organisation.

Customer lifetime (CLTV, LTV) The total value of all future contributions to profit and overhead you can
value expect from that customer.

Data mining The analysis of data for relationships. With information supplied over the net already in
digital format, details can be loaded into databases where software can search for
similarities, differences and patterns that can feed into marketing initiatives or launches.

Data protection The prevention of the passing of an individual's personal information from one computer
system where the information legitimately resides to other computer systems without the
consent of the individual.

Database A collection of records retained permanently on computer, constantly updated and


supporting a range of applications. Data may be added from other sources e.g.
questionnaires and telemarketing reports. (Source: www.jks.co.uk/mi)

Database (DBMS) A suite of programs which typically manage large structured sets of persistent
Management System data, offering ad hoc query facilities to many users. They are widely used in business
applications.

Deduplication System of removing names and addresses which appear in a list more than once.

Deep link A hyperlink that takes the user directly to a page within a website, instead of to the home
page. For example, used in affiliate relationships where a partner wishes to offer a link to
a specific product or information page.

Digital marketing ‘Digital marketing’ has a similar meaning to ‘Electronic marketing’ – both describe the
management and execution of marketing using electronic media such as the web, e-mail,
interactive TV, wireless media in conjunction with digital data about customers
characterstics and behaviour.

Direct marketing The IDM's preferred definition is "The planned recording, analysis and tracking of
individual customers' responses and transactions for the purpose of developing and
prolonging mutually profitable customer relationships."

DRTV Direct response television.

E-commerce Electronic commerce is conducting commerce over the internet, such as buying products
or services from websites. (Source: www.volta.net)

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Email marketing The use of outbound email marketing to achieve awareness, add value or achieve
response.

Endorsement Approval of one company given to another unrelated company. In direct mail this is often
a recommendation from a company a customer knows, of a second, non-competitive
company.

Experiential Experiential marketing allows customers to engage and interact with brands, products,
marketing and services. These personal experiences allow customers to 'experience' the brand and its
benefits themselves in order to make more informed purchase decisions.

Feed or RSS Feed Blog, news or other content is published by an XML standard and syndicated for other
sites or read by users in RSS reader services such as Google Reader, personalised home
pages or email systems. RSS stands for really simple syndication.

The number of times a person has ordered from a company within a given period. This
word is often used in conjunction with recency and monetary value, in order to forecast
Frequency future sales potential. In commercial TV parlance, refers to the number of times the target
audience has an opportunity to see/hear the campaign/commercial over a period of time.

Geographic Method of segmenting a list according to geographic criteria, e.g. town, country and TV
area.

Inbound links Aka backlinks. Links into a web page from other pages or websites (i.e. links that are
directed towards your website).

Internet Global communications network that carries communications protocols including the
world wide web, email and newsgroups.

Key word The word (or words) a user types in when presented with a search box (for example the
box in front of where it says "Look It Up" near the upper right-hand corner on the
homepage of NetLingo). On a search engine, for example, a keyword is the term or phrase
that you type in to begin an online search. The term keyword also appears in a meta tag as
part of the HTML code on a Web site. Keywords are the series of words which follow this
tag, and often comprise a long list of terms in order to help the search engines readily
identify and better index the Web site. (Source: www.hyperglossary.co.uk)

Lead generation Advertisements inviting enquiries for sales follow-up

Lifestyle A person's way of life, which has a direct influence on the type of products or services
they buy or require.

Lifetime value (LTV) The value of a customers purchases over time, e.g. five years or until no longer
active.

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Long tail Frequency distributions for online searches show large numbers of less popular, niche
keyphrases being used to search for products and services - most evident when
distribution frequency of search terms is displayed on a graph. Reflects Zipf’s law.

List broker A specialist individual or company with a wide knowledge of the list business who makes
recommendations to potential list users taking into account their particular needs and
requirements. A true list broker should have no particular allegiance to any single list or
owner.

Mailing List A mechanism for sending copies of a single Email note to more than one recipient using a
single list name. It is automatically sent to everyone on the list. The copies can be made
on the user's machine. Alternatively a single copy is send to a server on the Internet for
copying and sending on to a fixed list of recipients. There are thousands of mailing lists
operated on the Internet on all imaginable topics. Alternatively it is the final file of names
and addresses used for a mailing campaign. This would be a single list but may be a
processed file created from a number of lists.. (Source: IDM Marketing Guide 2006)

Mailing preference A system of registration for individuals who do not wish to receive unsolicited mail.
service Referred to as MPS and administered by the Direct Marketing Association.

Media fragmentation Describes a trend to increasing choice and consumption of a range of media in terms of
different channels such as web and mobile and also within channels, for example more
TV channels, radio stations, magazines, more websites. Media fragmentation implies
increased difficulty in reaching target audiences.

Mobile commerce (M-commerce) The ability to conduct monetary transactions via a mobile device, such as
a WAP-enabled mobile phone. (Source: www.iab.net)

MOSAIC Mosaic Global, supplied by Experian, is a single, consistent classification that provides
insight into the demographics, lifestyles and behaviours of 880 million people from the
world's major economies, including North America, Europe and Asia Pacific

Niche A small, tightly targeted segment of a market to whom a particular product, variation of a
product or presentation of a product may appeal.

Online PR Maximising favourable mentions of your company, brands, products or websites on third-
party websites that are likely to be visited by your target audience.

Online Value The specific benefits and features of a website (or other online service offering), over and
Proposition above the equivalent offline offering and as distinct from competitors'/competitive
offerings.

Opt-in email Lists of internet users who have voluntarily signed up to receive commercial email about
topics of interest. (Source: www.iab.net)

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Optimising Optimising communication depends on understanding customer groups, managing
communication customers on a lifetime value basis and deploying a universal planning and evaluation
framework, as well as the quality of leadership. (Source: Jenkinson, Mathews and Sain,
2005)

Page or ad One-page impression occurs when a member of the audience views a web page. One-ad
impressions impression occurs when a person views an advertisement placed on the web page.

Page View A unit for measuring Web site readership which corresponds to one person viewing one
page, or at least a portion of a page, one time. If a person leaves a certain page and returns
to it in the same visit to the Web site two page views are counted. Page views are a more
difficult to measure than hits but are a much more useful and relevant measure of the
attention a page garners from viewers. (See hit and Web page in the hard copy
dictionary.) (Source: IDM Marketing Guide 2006)

Pay per click (PPC) A type of search marketing where advertisers pay a set amount every time their ad
is clicked on by a prospect (known as a clickthrough).

Pay per click search A relevant text ad with a link to a company web page is displayed when the user of a
marketing search engine types in a specific phrase. A fee is charged to the advertiser for every click
on the link, with the amount bid for the click mainly determining its position on the search
results page

Peer-to-peer (P2P) Simple process of online trading or exchange between individuals without the need
of an intermediary, retailer or agent. Sometimes described more prosaically as person-to-
person.

Personalisation The addition of personal information (e.g. name, address or other personal details about a
prospect or customer) incorporated into the copy, usually via computer.

QR code (aka mobile tagging) QR codes store addresses, URLs and other information that can
appear in magazines, business cards, on signs and buses, etc. The code is scanned using a
device such as a mobile phone. (Source: Wikiped

Recency The time which has elapsed since a customer either bought from or entered into another
transaction.

Red button Colloquial name for the button on remote control and other devices used to access
interactive services provided through digital television.

Relational Database A database based on the relational model developed by E.F. Codd. A relational database
allows the definition of data structures, storage and retrieval operations and integrity
constraints. In such a database the data and relations between them are organised in tables.
A table is a collection of records and each record in a table contains the same fields.
Certain fields may be designated as keys, which means that searches for specific values of
that field will use indexing to speed them up. (Source: IDM Marketing Guide 2006)

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Rental agreement An agreement whereby one party hires either a segment or an entire customer list that
belongs to another for a one-time use, in return either for a set charge or other form of
recompense

Response rate The percentage of orders or enquiries received of the total number of people who received
the promotion.

Seed names Those names and addresses inserted into a mailing list, for monitoring purposes.

SEO See Search engine optimisation.

SMART Specific, measurable, attainable, relevant and time-oriented objectives

Social media The creation of useful, valuable and relevant content and applications by brands, or by
consumers with specific reference to brands, that can be shared online, facilitated by web
2.0 technology.

Spam Junk e-mail Or "junk email". Unsolicited mass e-mailing. It might be very tempting to use the power
of the Internet to hit 100,000 email addresses with a mailshot about your product, but
spamming is generally frowned upon by Internet users. It will probably do your company
more harm than good, annoying potential customers and damaging your online reputation.
(Source: www.hyperglossary.co.uk)

Spider Software program, typically employed by a search engine, that automatically surveys the
web in order to expand the search engine's database of web pages and websites indexed
by subject.

Split run A test where one element of a promotion is tested against another or a control using
alternate copies of the same issue of the same publication. These are also known as A/B
splits in the press, and a ‘head to head’ in direct mail. (Source: www.science.uva.nl)

Tag cloud (aka word cloud) Visual depiction or textual list of hyperlinked tags (keywords, key
phrases) describing content of a website. Tags are listed alphabetically and weighted
(using font size and colour) by frequency or popularity

Targeting The process of identifying audiences, markets, specific sections or clusters and also
individuals that match known characteristics (especially propensity to buy); and using this
information in the design and content of marketing campaigns that reach and appeal to
these certain classes or types of customers.

Teaser A device intended to entice a reader to open an envelope and read its contents.

Telemarketing The use of the telephone as a marketing medium for any activity such as list building, lead
generation or selling

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Testimonial A favourable comment made by a customer or a known personality. Used to reassure the
reader or to add emphasis or credibility to the product or proposition.

Unique visitor An individual who views a website during a specified period of time (e.g. a day, a month).

Viral marketing Using powerful offers to stimulate proliferation of a message via online “word of mouth”
(through social networks, emails, blogs etc.) to reach large audiences rapidly and cost-
effectively. Can be used to build response, sales, awareness and PR

Web 2.0 Describes a host of user-driven technologies such as blogs, wikis, social bookmarking
tools, syndication services and podcasting. These are about creating and remixing content
(i.e. user-driven content environments) not just consuming it.

Web response Offline print, TV, PR or direct mail campaign where one of the main campaign objectives
campaign is to encourage visits to your website, thereby generating interest, leads or sales.

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