Demystifying Ad Marketing Jargon: Easy to understand 17 Key Terms for Success in Digital Marketing

CTR (Click-Through Rate): CTR is a metric that measures the percentage of users who click on a specific ad or link, relative to the number of impressions it receives. It helps evaluate the effectiveness of an ad campaign in generating clicks.

VCR (Viewability Conversion Rate): VCR measures the rate at which viewers of a video ad take a desired action, such as clicking a call-to-action button or making a purchase. It helps determine the effectiveness of video ads.

CAC (Customer Acquisition Cost): CAC is the average cost a business incurs to acquire a new customer. It is calculated by dividing the total cost of acquisition (marketing expenses, sales team salaries, etc.) by the number of customers acquired during a specific period.

DAU (Daily Active Users): DAU represents the number of unique users who engage with a particular app, platform, or website on a daily basis. It is a key metric for evaluating user engagement and measuring the popularity of a product or service.

CVR (Conversion Rate): CVR measures the percentage of users who complete a desired action or conversion goal, such as making a purchase, signing up for a newsletter, or filling out a form. It helps assess the effectiveness of a marketing campaign in driving conversions.

ROAS (Return on Ad Spend): ROAS is a metric that measures the revenue generated for every dollar spent on advertising. It helps assess the profitability and efficiency of ad campaigns by evaluating the return on investment in advertising.

Impressions: Impressions refer to the number of times an ad is displayed or shown to users.

CPC (Cost Per Click): CPC is the cost incurred by advertisers for each click on their ads. It helps determine the average cost of driving traffic to a website or landing page.

CPM (Cost Per Mille): CPM represents the cost per thousand impressions. It is used to measure the cost of displaying ads to a thousand viewers or impressions.

CPA (Cost Per Acquisition): CPA is a metric that calculates the cost incurred to acquire a customer or generate a specific action, such as a purchase or form submission. It helps assess the efficiency of a campaign in driving conversions.

ROI (Return on Investment): ROI measures the return or profitability generated from an investment, including ad spend. It is typically calculated as a percentage and helps evaluate the overall effectiveness of marketing efforts.

Frequency: Frequency refers to the average number of times an ad is shown to a unique user during a specific campaign or time period.

A/B Testing: A/B testing, also known as split testing, involves comparing two versions of an ad or landing page to determine which one performs better in terms of engagement, conversions, or other metrics.

Impressions Share: Impressions share is the percentage of total impressions that your ads receive out of the total number of impressions they were eligible to receive. It helps assess the ad’s visibility and market coverage.

Retargeting: Retargeting is a strategy where ads are shown to users who have previously interacted with a website or app. It aims to re-engage and convert users who have shown interest but have not completed a desired action.

Engagement Rate: Engagement rate measures the level of interaction or involvement that users have with an ad or a piece of content. It can include metrics such as likes, shares, comments, or time spent on a page.

KPI (Key Performance Indicator): KPIs are specific metrics used to evaluate the performance and success of marketing campaigns or strategies. They can vary based on the objectives and goals of the campaign.