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Glossary

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.

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 Return on Advertising Spend (iROAS)

Incremental revenue divided by spend.

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.

KPIs (Key Performance Indicators)

Specific, quantifiable measures used to evaluate the success of marketing activities.

Lifetime Value (LTV)

A metric that estimates the average revenue a customer will generate over the course of their relationship with a business.

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 ROI

A metric that helps determine how to allocate additional marketing funds to maximize return.

Marginal Return On Advertising Spend (mROAS)

A metric used in marketing to measure the efficiency of an additional dollar spent on advertising.

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.

Platform ROAS (pROAS)

Return on ad spend (ROAS) as reported by the vendor without any adjustment.

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.

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).

A/B Testing
Advertising Wearout
Attribution
Baseline Sales
Behavioral Targeting
Brand Awareness
Brand Equity
Business Intelligence
CAC to LTV Ratio
Campaign Optimization
Channel Synergy
Churn Rate
Control Estimate
Click-Through Rate
Conversion Rate
Conversion Ratio
Cross-channel Marketing
Customer Acquisition Cost
Customer Data Platform
Customer Journey Mapping
Customer Lifetime Value
Customer Retention Rate
Customer Segmentation
Data Enrichment
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