Glossary
The terms behind the dashboards.
Plain-language explainers for the metrics and concepts that show up everywhere in paid acquisition. Formulas, typical ranges, common misuses — the stuff most platforms assume you already know.
Metrics
Click-Through Rate (CTR)
The percentage of people who saw your ad and clicked it. The first signal of whether your hook is working.
Cost per Acquisition (CPA)
How much you pay in ad spend for each new customer or qualified action.
Cost per Click (CPC)
How much you pay each time someone clicks your ad. The link between bidding and CTR.
Cost per Mille (CPM)
How much it costs to show your ad to 1,000 people. The 'price of attention' on a given network.
Return on Ad Spend (ROAS)
Revenue generated for every euro / dollar spent on advertising. The single most-watched paid-acquisition metric.
Analytics
Attribution
Deciding which marketing touchpoints get credit for a conversion. The most-debated number in modern marketing.
Average Order Value (AOV)
The average revenue per order. The lever that, when raised, makes every other unit-economic problem easier.
Conversion Rate
The percentage of visitors who complete a desired action — purchase, signup, lead form. The lever that compounds with everything else.
Customer Acquisition Cost (CAC)
The fully-loaded cost of acquiring one customer, including ad spend plus all the marketing inputs that helped convert them.
Customer Lifetime Value (LTV)
The total revenue (or contribution margin) a customer generates across their entire relationship with your brand.
Lookback Window (Attribution Window)
How far back in time the ad platform looks to credit a conversion to one of your ads. The single biggest setting that changes your reported ROAS.
Audiences
Lookalike Audience
An audience the ad platform builds that statistically resembles your existing customers. The bridge between retargeting and cold prospecting.
Retargeting (Remarketing)
Showing ads to people who've already visited your site, viewed a product, or abandoned a cart. The highest-converting paid audience you can build.
Creative
Ad Fatigue
When the same audience has seen your creative too many times and stops responding. The most common reason a winning ad suddenly underperforms.
Dynamic Creative Optimisation (DCO)
Letting the ad platform automatically mix and match headline / image / CTA combinations to find the best-performing pairing per audience.