Performance Marketing Glossary
A
Attribution Model
The rule (or set of rules) that determines how credit for sales and conversions is assigned to touchpoints in conversion paths (e.g., First Click vs. Last Click).
A/B Testing
A method of comparing two versions of an ad or landing page against each other to determine which one performs better.
B
B2B (Business-to-Business)
Marketing strategies focused on selling products or services to other businesses rather than individual consumers.
B2C (Business-to-Consumer)
Marketing strategies focused on selling directly to individual end-consumers.
Backpropagation
Short for “backward propagation of errors.”
Broad Match
A keyword setting in search advertising that allows your ad to show when a user searches for that keyword, its synonyms, related searches, or other relevant variations.
Buyer Persona
A semi-fictional representation of an ideal customer based on market research and real data about existing customers.
C
CAC (Customer Acquisition Cost):
The total sales and marketing cost required to earn a new customer.
Campaign
A specific set of ad groups and ads sharing a budget and targeting goals within a platform like Meta or Google Ads.
Cookies
Small files stored on a user’s browser used to track behavior, maintain login sessions, and power retargeting ads.
CPA (Cost Per Acquisition)
The cost to acquire one paying customer or a specific lead.
CPC (Cost Per Click)
You only pay when someone actually clicks your ad.
CPL (Cost Per Lead)
The cost specifically for capturing a user’s information (email, phone, etc.).
CPM (Cost Per Mille)
The cost for 1,000 impressions. Ideal for brand awareness.
CPV (Cost Per View)
A bidding method for video campaigns where you pay when a viewer watches a certain duration of your video or interacts with it.
Creative
The actual ad content; images, videos, or copy that the target audience sees. In modern performance marketing, “creative is the new targeting.”
The percentage of people who saw your ad and clicked it.
Formula: (Clicks / Impressions) x 100
Custom Audience
A targeting option that allows you to find your existing audiences among people who are on platforms like Meta or Google (usually uploaded via email lists).
Customer Lifetime Value (CLV/LTV)
The total worth to a business of a customer over the whole period of their relationship.
CVR (Conversion Rate)
The percentage of people who clicked your ad and then completed the desired action (like buying a product)
D
DABA (Dynamic Ads for Broad Audiences)
A Meta (Facebook) ad feature that shows relevant products from your catalog to people who haven’t visited your website yet but have shown interest in similar products elsewhere.
DPA (Dynamic Product Ads)
Ads that automatically show products to people who have expressed interest on your website or app. If they looked at a specific pair of shoes, the DPA will show them those exact shoes.
L
Landing Page
The specific webpage a visitor “lands” on after clicking an ad, optimized for a single conversion goal.
Lookalike Audience (LAL)
An audience created by an algorithm (like Meta’s) that finds new people who share similar characteristics with your existing customers.
LTV (Lifetime Value)
The total amount of money a customer is expected to spend with your business during their entire relationship with you.
M
MER (Marketing Efficiency Ratio)
Total Revenue divided by Total Ad Spend across all platforms. Often called the “blended” ROAS.
P
Pixel / Tag
A snippet of code placed on a website that allows platforms (like Google or Meta) to track user behavior and conversions.
R
Retargeting / Remarketing
Serving ads to people who have already visited your website or interacted with your brand.
ROAS (Return on Ad Spend)
The gross revenue generated for every dollar spent on advertising.
Example: If you spend $1 and make $5, your ROAS is 5x.
ROI (Return on Investment)
A broader look at profit after all expenses (not just ad spend) are deducted.
V
View Through Rate
View-Through Rate (VTR) is a metric used in video advertising to measure the percentage of people who watched an ad from start to finish.
Formula: (Completed Views \ Total Impressions) x 100 = VTR
