Adropic/Documentation
Documentation

Glossary

The vocabulary of digital advertising, A to Z, with what each term is actually used for.

Definitions only get you so far; what matters is which decision a term supports. Each entry says what it means and what it is good for.

A–C

TermMeaningWhat it decides
Ad setThe level holding audience, placement, budget and scheduleWhere signal concentrates or fragments
Attribution windowHow long after a click or view a conversion is creditedHow much of the result you can see
AOV — average order valueRevenue divided by ordersHow much you can afford per order
Bid strategyThe rule the platform follows when biddingCost control versus volume
Blended CACTotal marketing spend divided by all new customersWhether the business is profitable, not the campaign
Broad targetingLeaving audience selection to the modelWhether creative or targeting drives delivery
CAC — customer acquisition costCost to acquire one paying customerWhether growth is affordable
Contribution marginRevenue minus variable costs, per orderThe real budget available for acquisition
Conversion rateConversions divided by clicksWhether the page delivers on the ad
Cost capMaximum average cost the platform may pay per resultProtecting efficiency while scaling
CPA — cost per acquisitionSpend divided by conversionsCampaign-level efficiency
CPC — cost per clickSpend divided by clicksAd relevance and competition
CPM — cost per thousand impressionsSpend divided by impressions × 1000Competition and creative quality, read together
Creative fatigueDecay from repeated exposure to the same audienceWhen to refresh rather than re-bid
CTR — click-through rateClicks divided by impressionsWhether the promise motivates action

D–L

TermMeaningWhat it decides
DaypartingRestricting delivery to certain hours or daysRarely useful; usually costs learning
Dynamic creativePlatform assembling assets into combinationsFast variant testing, weak concept testing
FrequencyAverage impressions per personFatigue risk and audience exhaustion
FunnelThe stages between not knowing you and buyingWhich message a given ad should carry
Hold rateLonger-view rate on videoWhether content sustains the hook
Hook rateEarly-view rate on videoWhether the opening earns attention
ImpressionOne delivery of an adThe unit everything is priced against
IncrementalitySales that would not have happened without the adThe only measure of real ad value
Learning phasePeriod until delivery is optimized for an ad setWhy frequent edits raise costs
Lookalike audienceModel-built audience resembling a seed listRetargeting-adjacent prospecting
LTV — lifetime valueTotal margin a customer produces over timeThe ceiling on what you may pay to acquire

M–R

TermMeaningWhat it decides
MER — marketing efficiency ratioTotal revenue divided by total ad spendWhether the account works as a whole
Modelled conversionAn estimated, not observed, conversionHow much of the report is inference
ObjectiveThe outcome the campaign optimizes forWhat the algorithm will actually chase
Payback periodTime until a customer repays acquisition costHow aggressively you can fund growth
PlacementThe surface where the ad appearsFormat requirements and cost differences
ProspectingAdvertising to people who do not know youWhether the funnel refills
RetargetingAdvertising to people who already engagedHarvest, not growth
ROAS — return on ad spendRevenue divided by ad spendCampaign efficiency, in platform terms

S–Z

TermMeaningWhat it decides
Server-side trackingSending events from your server, not the browserSignal quality under consent limits
Statistical significanceConfidence a difference is not chanceWhen a test may be called
Thumb stopThe moment a scroll haltsThe job of the first frame
UGC — user-generated contentCreative made in a real-user registerTrust and cost at the top of the funnel
Unit economicsPer-order revenue, cost and marginWhether spending more helps or hurts
View-through conversionConversion after seeing, not clickingHow much credit to discount

Two terms are worth keeping apart: ROAS is measured inside the platform and counts what the platform can attribute; MER is measured in your bank account. When they disagree, MER is the one that pays salaries.

Glossary — Adropic