Online advertising glossary
The terms you meet when planning paid ads, explained plainly with a number example.
AOVAOV (average order value) is the average revenue per order.break-evenBreak-even is the point where ads neither earn nor lose money.close rateClose rate is the share of inquiries that become paying customers.conversion rateConversion rate is the share of visitors who complete the goal, such as an order or an inquiry.CPACPA (cost per acquisition) is what one order or customer costs you in ads.CPCCPC (cost per click) is the price you pay when someone clicks your ad.CPLCPL (cost per lead) is what one inquiry or contact costs you in ads.CPMCPM (cost per mille) is the price for 1,000 ad impressions.CTRCTR (click through rate) is the share of people who click an ad after seeing it.leadA lead is a potential customer who left contact details or sent an inquiry.lookalike audienceA lookalike audience is a group of people Meta finds as similar to your existing customers.LTVLTV (customer lifetime value) is the total profit a customer brings over the whole relationship.marginGross margin is the share of the selling price left after the cost of the product or service.markupMarkup is how much you add on top of the purchase price, as a percentage of that price.PMAXPerformance Max (PMAX) is a Google Ads campaign type that runs across Search, Shopping, YouTube, Display and Gmail at once.Quality ScoreQuality Score is Google's 1 to 10 rating of how relevant your keyword, ad and landing page are.remarketingRemarketing shows ads to people who already visited your website or interacted with you.ROASROAS (return on ad spend) is revenue from ads divided by what the ads cost.ROIROI (return on investment) is the profit an investment brings relative to its cost.UTM parametersUTM parameters are tags added to a link that tell analytics where a visit came from.