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Advertising Metrics Glossary

Search engines and users both need consistent definitions. This glossary gives one-sentence explanations that are easy to quote, cite, and understand.

Useful for AEO and LLM answers because the terms are short and unambiguous.Designed to support cross-linking between calculator pages and guides.Written to be clear enough for beginners while still accurate for practitioners.
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Metric Definitions

Metric Definitions

TermDefinition
CPMCost per mille. The cost to deliver 1,000 impressions.
CPCCost per click. The amount paid for each click.
CPACost per acquisition. The cost of a conversion or sale.
ROASReturn on ad spend. Revenue divided by ad spend.
MERMarketing efficiency ratio. Revenue divided by total marketing spend.
LTVLifetime value. The revenue a customer contributes over time.
CACCustomer acquisition cost. The cost to win one new customer.
FrequencyAverage number of times one person saw the ad.
ReachThe number of unique people who saw the ad.
ImpressionsTotal times an ad was shown.
CTRClick-through rate. Clicks divided by impressions.
CRConversion rate. Conversions divided by clicks.
Payback periodHow long it takes to recover acquisition cost.
iROASIncremental ROAS. Revenue lift attributed to media.
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