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Advertising Terms Glossary

Every digital advertising term you need to know, explained in plain English. From CPM and ROAS to LTV and CAC — no jargon, no fluff.

28 terms covering ad metrics, billing models, campaign strategy, and analytics. Each entry includes formulas, benchmarks, and links to our calculators so you can apply what you learn.

A/B Testing: A method of comparing two versions of an ad, page, or element to determine which performs better.
Advertising Inventory: The total amount of ad space available for purchase on websites, apps, or other digital platforms.
Bounce Rate: The percentage of visitors who leave a website after viewing only one page without taking any action.
Click-baiting: Using misleading, sensational, or exaggerated headlines/content to trick users into clicking on ads.
Conversion Rate Formula & Benchmarks: Conversion rate is the percentage of visitors who complete a desired action. Learn the formula, benchmarks, and how to improve yours.
CPL (Cost Per Lead): The average cost to acquire one lead through your advertising campaigns.
CPM Formula: Cost Per Thousand Impressions: CPM is the cost per 1,000 ad impressions. Learn the formula, benchmarks by platform, and when to use CPM vs CPC bidding.
Creative Fatigue: The decline in ad performance that occurs when audiences see the same creative too frequently, leading to decreased engagement.
Customer Acquisition Cost (CAC) Explained: CAC is the total cost to acquire one new customer. Learn the formula, what to include, benchmarks, and how to lower your CAC.
Customer Lifetime Value (LTV) Explained: LTV is the total revenue a customer generates over their relationship with your business. Learn the formula, benchmarks, and how to increase it.
Dwell Time: The amount of time a user spends engaging with your content before leaving or taking action.
Engagement Baiting: Explicitly asking users to like, share, or comment to artificially boost engagement metrics and game algorithms.
Impressions: The number of times an ad is displayed or shown to users, regardless of whether it was clicked or not.
Payback Period Formula: How to Calculate It: The payback period is how long it takes to recover your customer acquisition cost. Learn the formula, benchmarks, and how to interpret it.
Reach: The total number of unique users who see your ad or content at least once.
ROI Meaning: Return on Investment Formula: ROI measures the profit or loss from an investment as a percentage. Learn the formula, how to calculate ad ROI, and how ROI differs from ROAS.
What are Rich Media Ads?: Rich media ads are interactive display ads that go beyond static images — using video, audio, animations, or expandable elements to drive higher engagement.
What is a Dark Post?: A dark post is a paid social media ad that doesn't appear on your profile or page timeline — it only shows to the targeted audience. Useful for A/B testing without cluttering your feed.
What is a Demand-Side Platform (DSP)?: A DSP is software that lets advertisers buy ad space automatically across multiple publishers and exchanges through real-time bidding — all from one interface.
What is Ad Space?: Ad space is the designated area on a website, app, or platform where advertisements can be displayed. It is the inventory publishers sell and advertisers buy.
What is CPC (Cost Per Click)?: CPC is the amount you pay each time someone clicks your ad. Learn the formula, benchmarks by platform, and how to lower your CPC.
What is CTR (Click-Through Rate)?: CTR measures the percentage of people who click your ad after seeing it. Learn the formula, benchmarks, and how to improve your CTR.
What is Marketing Automation?: Marketing automation uses software to handle repetitive marketing tasks — email sequences, ad campaigns, lead scoring — so you can scale without scaling your team.
What is Native Advertising?: Native advertising is paid content that matches the look, feel, and function of the platform it appears on — designed to feel like organic content rather than a traditional ad.
What is Omnichannel Marketing?: Omnichannel marketing creates a seamless customer experience across all channels — online, offline, mobile, email, and social — so the brand feels consistent everywhere.
What is Owned Media?: Owned media is any channel you fully control — your website, blog, email list, and app. Unlike paid ads, you don't pay for distribution and the audience is yours.
What is ROAS? Meaning, Formula & Benchmarks: ROAS (Return on Ad Spend) measures revenue generated per dollar spent on ads. Learn the formula, benchmarks by industry, and how it compares to ROI.
What is the Marketing Mix? (The 4 Ps Explained): The marketing mix is the set of controllable variables — Product, Price, Place, and Promotion — that businesses use to influence how customers perceive and buy their offerings.