KEY TERMS TO UNDERSTAND

 Below is a glossary of terms you will come across in the social media ads module.

ROI/ROAS - return on investment or Return on Ad Spend. The amount of money you earn after ad costs.

CPA - Cost per acquisition. How much it costs to acquire a new customer.

LTV - The life time value of a customer. See this Case Study to learn more about this.

AOV = Average Order Value: Average total of transactions coming through the marketing funnel, e.g., if your product costs $200 and no other upsells are offered, then your product's AOV is $200

Impressions - how many times your ad is being displayed to someone. displayed, not necessarily noticed.

Clicks - when someone clicks your ad from an impression

Leads - when someone gives your their contact information so you can contact them directly

CPM - cost per 1,000 impressions (views)

CPC - How much you pay every time someone clicks on your ad.

CTR - click through rate - how many clicks per 1,000 impressions. Presented as a percentage.

CPR - How much it costs per “result”. If the Click is your objective, then CPR and CPC will be the same. If the ad is for Leads or a Conversion of some sort, then that is what this figure will be based on.

CPL - The amount you pay for each Lead you get.

Engagement - interaction with your brand

Recency - how long since someone has interacted with your ads

MRR - Monthly Recurring Revenue

Retargeting - directing ads at people who have interacted with your brand