Glossary · 2026
25 definitions, written for humans. Every term gets a plain-English explanation, the formula or notation where it exists, related concepts, and a Frequently Asked section.
Metrics
How many months it takes for the cumulative gross profit from a customer to recover their acquisition cost. The cash-flow companion to LTV:CAC.
Privacy
Server-side Conversion APIs — the post-iOS 14.5 way to send conversion data directly from your server to ad platforms, bypassing browser-blocking.
Metrics
Cost Per Acquisition — total ad spend divided by number of customers acquired. Often called CAC (Customer Acquisition Cost) in SaaS.
Metrics
Cost Per Click — what you pay each time a user clicks your ad. The middle layer between CPM (impressions) and CPA (conversions).
Metrics
Cost Per Mille — the cost of buying 1,000 ad impressions. The buying-side equivalent of CPC and CPA.
Creative
The decline in ad performance that occurs when an audience has seen the same creative too many times.
Metrics
Click-Through Rate — the percentage of impressions that result in a click. The single most useful leading indicator of creative performance.
Audiences
An audience built from your own data — customer email list, website visitors, app users, video viewers — for targeting or exclusion.
Attribution
An attribution model that gives 100% of conversion credit to the final touchpoint before conversion.
Audiences
An audience built by the ad platform to resemble an existing 'seed' audience — typically your customers or website visitors.
Metrics
Customer Lifetime Value — the total revenue (or gross profit) a customer generates over their full relationship with your business.
Metrics
The ratio of customer lifetime value to customer acquisition cost — the central efficiency metric for subscription businesses.
Concepts
Google's algorithmic campaign type that runs ads across all Google inventory (Search, Shopping, Display, YouTube, Discovery) with one budget and one creative pool.
Metrics
Profit on Ad Spend — like ROAS but with gross profit instead of revenue. Honest for mixed-margin businesses where revenue and profit diverge.
Attribution
An attribution model that gives heavy credit to the first and last touchpoints, with the remainder split across middle touchpoints.
Audiences
Showing ads specifically to users who have already interacted with your brand — visited your site, viewed a product, abandoned a cart.
Metrics
Return on Ad Spend — the revenue generated for every dollar spent on advertising. The most-cited efficiency metric in performance marketing.