| Term | Definition |
| A/B Testing | A method of comparing two versions of a webpage, email, or other marketing asset to determine which one performs better. |
| Advertising Wearout | The decline in the effectiveness of an advertisement after it has been exposed to the target audience multiple times. |
| Attribution | The process of identifying which marketing efforts are driving sales and conversions. |
| Baseline Sales | The expected level of sales without any marketing activity. |
| Behavioral Targeting | The practice of using data on consumer behavior to target advertisements to specific users based on their actions and preferences. |
| Brand Awareness | The extent to which consumers recognize and are familiar with a brand. |
| Brand Equity | The value a brand adds to a product or service, reflected in how consumers think, feel, and act with respect to the brand. |
| Business Intelligence (BI) | Technologies and strategies used by enterprises for the data analysis of business information, helping in decision-making. |
| CAC to LTV Ratio | A marketing KPI that measures the value of a customer over their lifetime compared to the cost of acquiring them |
| Campaign Optimization | The process of improving marketing campaigns to maximize their effectiveness and ROI through data analysis and strategic adjustments. |
| Channel Synergy | The combined effect of multiple marketing channels working together, which often results in greater impact than the sum of individual channels. |
| Churn Rate | The percentage of customers who stop using a product or service over a given period, an important metric for understanding customer retention. |
| Click-Through Rate (CTR) | The ratio of users who click on an advertisement to the number of total users who view the ad (impressions). |
| Control Estimate | A measure of confidence in the relationship between the test and control groups. Larger the number = more confidence. |
| Conversion Rate | The percentage of users who take a desired action, such as making a purchase or filling out a form. |
| Conversion Ratio | Treatment conversion divided by control conversions. |
| Cross-channel Marketing | A strategy that integrates various marketing channels to provide a seamless customer experience. |
| Customer Acquisition Cost (CAC) | A metric used to measure how much an organization spends to acquire new customers. |
| Customer Data Platform (CDP) | A software system that collects and organizes customer data from various sources to provide a unified view of each customer. |
| Customer Journey Mapping | A visual representation of the process a customer goes through to achieve a goal with a company, from initial contact to post-purchase. |
| Customer Lifetime Value (CLV) | A prediction of the net profit attributed to the entire future relationship with a customer. |
| Lifetime Value (LTV) | A metric that estimates the average revenue a customer will generate over the course of their relationship with a business. |
| Customer Retention Rate | The percentage of customers who continue to do business with a company over a specified period, indicating loyalty and satisfaction. |
| Customer Segmentation | The practice of dividing a customer base into groups of individuals that share similar characteristics for more targeted marketing. |
| Data Enrichment | The process of enhancing existing data by adding additional information from external sources, making the data more valuable and actionable. |
| Data Integration | The process of combining data from different sources to provide a unified view, essential for comprehensive analysis and decision-making. |
| Data-Driven Marketing | Making marketing decisions based on data analysis and insights rather than intuition or experience. |
| Ecommerce | A target variable that communicates we are looking at data in aggregate for both new and existing customers for online website based conversions. |
| Elasticity | The % increase in incremental revenue that is derived from incremental spend. The higher the elasticity the more effective the ad spend. |
| Engagement Rate | A metric that measures the level of interaction that content receives from an audience, often used in social media and digital marketing. |
| Geo Testing | A strategy for isolating marketing efforts in specific regions to measure their impact on metrics like sales, compared to non-targeted regions. |
| Geotargeting | The practice of delivering content or advertisements to users based on their geographic location. |
| Incremental CPA (iCPA) | Spend divided by incremental conversions. |
| Incremental Sales | Sales generated as a direct result of marketing activities above the baseline sales. |
| Incrementality | Measures an event that wouldn’t have occurred without a specific interaction, like an ad view, resulting in a desired outcome, such as a conversion. |
| Influencer Marketing | A strategy that involves partnering with influencers—individuals with a large and engaged following—to promote products or services. |
| Incremental Return on Advertising Spend (iROAS) | Incremental revenue divided by spend. |
| KPIs (Key Performance Indicators) | Specific, quantifiable measures used to evaluate the success of marketing activities. |
| Lift Analysis | A technique used to measure the incremental impact of a marketing campaign by comparing the performance of a test group exposed to the campaign with a control group that was not. |
| MAPE | The mean absolute percentage error (MAPE), also known as mean absolute percentage deviation (MAPD), is a measure of prediction accuracy of a forecasting method in statistics. |
| Marginal CAC (mCAC) | A concept that focuses on the additional cost of acquiring a new customer as your spending on customer acquisition increases. |
| Marginal Return On Advertising Spend (mROAS) | A metric used in marketing to measure the efficiency of an additional dollar spent on advertising. |
| Marginal ROI | A metric that helps determine how to allocate additional marketing funds to maximize return. |
| Marketing Attribution Model | A framework for assigning credit to different marketing touchpoints along the customer journey for their role in driving conversions. |
| Marketing Automation | The use of software to automate repetitive marketing tasks, such as email campaigns, social media posting, and ad management, to increase efficiency. |
| Marketing Effectiveness | The measure of how well marketing strategies achieve business objectives, typically in terms of sales, engagement, and brand awareness. |
| Marketing Mix Modeling (MMM) | A statistical analysis technique used to estimate the impact of various marketing tactics on sales and to forecast the impact of future marketing strategies. |
| Media Efficiency Ratio (MER) | The ratio of total revenue to total media spend, used to assess the overall effectiveness of media investments. |
| Media Spend | The amount of money allocated for advertising across different media channels such as TV, radio, online, and print. |
| Net Promoter Score (NPS) | A measure of customer satisfaction and loyalty, calculated based on customers’ likelihood to recommend a company’s products or services to others. |
| Omnichannel Marketing | A seamless and integrated approach to marketing across multiple channels, ensuring a consistent customer experience. |
| P-Value | A way to quantify significance. The lower the # the more certainty ad exposure leads to a desired outcome. Benchmark of 0.2 for significance. |
| Personalization | Tailoring marketing messages and experiences to individual customers based on their preferences, behaviors, and demographics. |
| Predictive Analytics | Techniques used to analyze current and historical data to make predictions about future events, often used in marketing to forecast trends and behaviors. |
| Platform ROAS (pROAS) | Return on ad spend (ROAS) as reported by the vendor without any adjustment. |
| Real-time Analytics | The analysis of data as soon as it becomes available, allowing businesses to make immediate, data-driven decisions. |
| Retail | A target variable that communicates we are looking at data in aggregate for both new and existing customers for online brick and mortar based conversions. |
| Return on Advertising Spend (ROAS) | A metric used to measure the revenue generated for every dollar spent on advertising. It is calculated by dividing the revenue by the advertising spend. |
| Return on Investment (ROI) | A measure of the profitability of marketing activities, calculated as the ratio of net profit to marketing investment. |
| Revenue | Revenue pulled directly from the ad platform or flat file provided from the team. |
| Sentiment Analysis | The use of natural language processing to determine the emotional tone behind a body of text, used to understand customer opinions and feedback. |
| Significance | Evidence that results seen in sample ad spend also exist in population. |
| Target Variable | Communicating whether you are viewing data in aggregate, or at a new customer level or other cut. Can also be segmented into ecommerce (online/web) and retail (brick and mortar). |
