In Digital Marketing, there are a plethora of acronyms like CPI, CPA, CTR, etc. Initially, some of them may sound confusing and could even be overwhelming. But once you understand the meaning and get the hang of them, these terms come in handy during reports and when strategic discussions are made. Let’s take some of the most basic yet critical social media marketing terms and analyze from their detailed explanations, how they differ from one another.

1.KPI- Key Performance Indicator

KPI, in general, denotes the critical actions which must be taken to achieve the results. In marketing terms, if your objective is a conversion, then KPI could range anywhere from clicking on a page, browsing a specific product to adding a product in the cart.


2.CPI- Cost Per Impression

Impressions are counted when an ad is shown to an audience. It doesn’t matter whether they interact with it. The total impressions will then be the total no. of times your ad was displayed to the audience which then defines the cost. Impressions become incumbent when your market strategy is “brand awareness.”

3.CPC- Cost Per Click

As the acronym suggests, a particular amount is debited when your ad is clicked. It may vary depending on your competitor’s bidding, demographics of your audience, and keyword to name a few. Higher CPC suggests that optimization is required for your marketing campaign.


4.CPA- Cost Per Acquisition

This is the cost of acquiring one customer. Mathematically, you could define this by dividing the total money spent to the total number of conversions. This term is significant as it provides you with a much-needed metric to optimize your campaign. Like, for example, if the cost per customer is too high, then the campaign needs to be optimized. 

5.CTA- Call to Action

 A CTA is usually a button at the end of your ad/post, to grab the audience’s attention and to nudge them into interacting with your ad/post. The button should be big and bold, with a clear message of what action you’d like the audiences to engage in.


6.CTR- Click Through Rate

This is defined as the ratio of the number of clicks your ad/post received to the number of times the ad was displayed (Impressions). Then multiply it by 100 to obtain the percentage. In Social media terms, it shows the total no. of the audience who have clicked your ad/post.  

7.Engagement Rate

Engagement Rate shows how much the audience has engaged with your post, whether it’s a LinkedIn, Twitter, or FB post. The number of likes, comments and shares are displayed individually to explain the engagement rate. Basically, the higher the engagement rate, the better is your content.

customer engagement

8.A/B split testing

Split testing can be implemented when you’re experimenting with an ad or a new website page. Basically, you create multiple versions of the ad/page to see which ad grabs the audience’s attention and makes them interacts with it. This process eliminates any guesswork and enables you to make data-informed decisions.

9.Lookalike audiences

They are audiences who are similar to your existing customers. Similar profiles, similar interests help you to reach a wide audience base with a huge potential for conversion. They are built using the e-mail list which you have procured from the current customers. When you upload this list to FB, it automatically finds similar audiences and targets your ad to them.


You probably would have seen an ad where the products you browsed in any app reappear in your social media profiles. This is Remarketing where the brands tempt you to purchase the product you viewed by displaying it along with other similar viewed products. 

These are basic, yet some of the most critical social media marketing terms used. Knowing them and how they differ from one another would help you substantially in optimizing your marketing campaign and come up with creative new strategies.