Bounce Rate
The percentage of visits where someone leaves after viewing only one page.
(single-page visits / total visits) x 100
Marketing glossary
Marketing definitions and formulas in plain language.
This glossary is for newer marketers who want quick, clear explanations of common paid media, analytics, and performance terms.
Core formulas
Common marketing metrics to know first
These are some of the most common formulas used in reporting, budgeting, and campaign performance reviews.
CPA (Cost Per Acquisition)
The average cost to gain one new customer or conversion.
total cost / number of acquisitions
CPC (Cost Per Click)
The amount paid for each ad click.
total cost / total clicks
CPL (Cost Per Lead)
The average amount spent to generate one lead.
total campaign cost / total leads
CPM (Cost Per Mille)
The cost to serve one thousand ad impressions.
total cost / (impressions / 1,000)
CTR (Click-Through Rate)
The percentage of people who clicked after seeing an ad.
(clicks / impressions) x 100
ROAS (Return on Ad Spend)
The revenue generated for each dollar spent on advertising.
revenue from ads / ad cost
ROI (Return on Investment)
A measure of profitability based on what you earned versus what you spent.
((net profit - cost) / cost) x 100
Common terms
Key marketing terms in plain language
These short definitions help newer marketers understand the language used in campaign planning, targeting, analytics, and reporting.
Ad Exchange
A marketplace where ad impressions are bought and sold, often in real time.
Ad Rank
A value used by ad platforms to decide how high your ad appears compared to other advertisers.
Ad Server
Technology that delivers ads and tracks performance like impressions and clicks.
Affiliate Marketing
A model where partners promote a product or service and earn based on results they drive.
Attribution Model
A way of assigning credit to different touchpoints in the customer journey.
Audience Targeting
Showing ads to a specific group based on shared traits like interests, location, or behavior.
Behavioral Targeting
Using past online actions to help match ads to the right users.
Data Management Platform (DMP)
A system for collecting and organizing audience data for targeting and campaign planning.
Dayparting
Scheduling ads to run only at certain times or days.
Demand Side Platform (DSP)
Software advertisers use to buy digital ad inventory across multiple sources.
Frequency Capping
Limiting how often the same person sees the same ad in a certain time period.
Impression Share
The percentage of possible impressions your ads actually received.
Predictive Analysis
Using data and statistical patterns to forecast what may happen next.
Private Auction
An invitation-only ad marketplace with a selected group of publishers or placements.
Programmatic Advertising
Automated ad buying that uses data and software to place media more efficiently.