LFM Terminology

on Advertising

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  • Advertising

    Putting a spotlight on a product, service or business through paid broadcasting – print or digital.

  • Average Order Value (AOV)

    Average order value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or mobile app. To calculate your company’s average order value, simply divide total revenue by the number of orders.

  • Campaign Budget Optimization (CBO)

    Campaign budget optimization (CBO) makes the most efficient use of your budget spending to get you the overall best results, and ensure that the cost of those results align with your bid strategy. A campaign budget is a budget you set at the campaign level (rather than the ad set level). The amount you set can apply to each day the campaign runs (daily budget) or over the lifetime of the campaign (lifetime budget). All campaign budgets use campaign budget optimization.

  • Comparative Advertising

    The type of advertising in which a company makes a direct comparison to another brand, firm or organization.

  • Cost Per Acquisition (CPA)

    When brands choose the cost per acquisition pricing model while advertising on online advertising platforms, they pay for every acquisition, like a sale or form submission, their advertisement campaign generates.

  • Cost Per Click (CPC)

    An advertising metric that marketers use to determine the amount they will pay for ads based on how many clicks the ad receives. CPC is used most often with Google Adwords and for Facebook ads.

  • Cost Per lead (CPL)

    The total cost marketing pays to acquire a lead. It is an important metric to keep track of and it influences your Customer Acquisition Cost (CAC).

  • Direct Mail

    A means of advertising communication that reaches a consumer where they live or their place of business, through the mail, often based on demographics and/or geographical location.

  • Direct Marketing

    Dealing Directly with the ‘end user’ rather than a third party or a middle man. Also can be seen as directly communicating with your primary target audience. Can come in the form of advertising, marketing or communications.

  • Look Alike Audience (LAA)

    A Lookalike Audience is a way to reach new people who are likely to be interested in your business because they're similar to your best existing customers. When you create a Lookalike Audience, you choose a source audience (a Custom Audience created with information pulled from your pixel, mobile app, or fans of your Page). The ad plateform identifies the common qualities of the people in it (for example, demographic information or interests). Then, they deliver your ad to an audience of people who are similar to (or "look like") them.

  • Native Advertising

    A type of online advertising that takes on the form and function of the platform it appears on. Its purpose is to make ads feel less like ads and more as part of the conversation. That means it's usually a piece of sponsored content that's relative to the consumer experience, isn't interruptive, and looks and feels similar to its editorial environment. Native advertising can come in many forms, whether it's radio announcers talking favorably about a product sponsoring the show, or an article about a product or company showing up in your news source.

  • Pay Per Click (PPC)

    A method of advertising on the internet where you only pay when someone “clicks” on your ad.

  • Return on Ad Spend (ROAS)

    ROAS stands for return on ad spend—a marketing metric that measures the amount of revenue your business earns for each dollar it spends on advertising. For all intents and purposes, ROAS is practically the same as another metric you’re probably familiar with: return on investment, or ROI. In this case, the money you’re spending on digital advertising is the investment on which you’re tracking returns. At the most basic level, ROAS measures the effectiveness of your advertising efforts; the more effectively your advertising messages connect with your prospects, the more revenue you’ll earn from each dollar of ad spend. The higher your ROAS, the better.