Marketing Glossary

The average amount customers spend per transaction. A key metric for understanding customer purchasing behavior.

The total cost to acquire a new customer, including all marketing and sales expenses.

The cost to acquire one paying customer through paid advertising. Includes all ad spend divided by number of conversions.

The average amount you pay for each click on your ads. A key metric for measuring traffic acquisition costs.

The cost to show your ad to 1,000 people. Used to measure the efficiency of brand awareness campaigns.

The percentage of people who click your ad after seeing it. A key indicator of creative performance and relevance.

The percentage of website visitors who complete a desired action (purchase, signup, etc.).

The total revenue a customer generates throughout their relationship with your business.

The ratio of customer lifetime value to customer acquisition cost. A key metric for business sustainability.

Revenue generated for every dollar spent on advertising. A ROAS of 4:1 means $4 in revenue for every $1 in ad spend.

ROAS calculated using total revenue and total ad spend across all platforms and channels.

The minimum ROAS needed to cover all costs and achieve $0 profit. Critical for setting bid strategies.

Revenue minus variable costs (COGS, shipping, payment processing). The profit available to cover fixed costs and marketing.

Total revenue divided by total marketing spend across all channels. A blended view of marketing performance.

The time it takes to recover customer acquisition costs through profit from that customer.

Meta's automated campaign type that uses machine learning to optimize targeting, placement, and creative delivery for ecommerce.

Meta's major algorithm update that improved machine learning and made broad targeting more effective than detailed targeting.

The time period after someone clicks or views your ad during which Meta will count conversions as attributed to that ad.

A bidding strategy that sets the maximum amount Meta will bid in each auction for your ad placement.

Running campaigns with minimal audience restrictions, letting Meta's algorithm find the best customers through machine learning.

Meta's system that automatically distributes budget across ad sets within a campaign to maximize results.

A bidding strategy that tells Meta the maximum amount you want to pay for a conversion while maximizing volume.

Audiences created from your own data - website visitors, customer lists, app users, or engagement with your content.

Feature that automatically tests different combinations of creative elements (images, headlines, text) to find the best performing combinations.

Audiences created by Meta that share similar characteristics to your existing customers or website visitors.

The average number of times each person in your audience has seen your ad. Key indicator of potential creative fatigue.

The decline in ad performance that occurs when your target audience has seen your creative too many times and stops engaging.

A marketing approach that targets customers at different stages of the buyer's journey - awareness, consideration, and conversion.

The additional revenue or conversions that wouldn't have happened without your advertising spend. True measure of ad impact.

The combination of different advertising channels and platforms used to reach customers - Meta, Google, TikTok, email, etc.

Advertising to cold audiences - people who haven't interacted with your business before. Used to find new customers.

Showing ads to people who have already interacted with your business - visited your website, engaged with content, or made purchases.

The percentage of customers who stop using your product or cancel their subscription in a given period.

The process and strategy of gaining new customers for your business through various marketing channels and tactics.

Whether you make money on a customer's very first purchase, before any repeat purchases or lifetime value.

The total revenue generated from a subscription customer over their entire relationship with your business.

The direct revenues and costs associated with a single unit of your product or customer. Foundation of profitable scaling.