# Digital Advertising Metrics Glossary of Terms

### Attribution

The process of identifying a set of user actions ("events") that contribute in some manner to a desired outcome, and then assigning value to each of these events.

### Average Order Value (AOV)

The average amount spent each time a customer places an order. Calculated as (Total Revenue / Number of Orders).

### Bounce Rate

The percentage of visitors who navigate away from the site after viewing only one page. Calculated as (Single-page Visits / Total Visits) x 100.

### Click-Through Rate (CTR)

Measures the percentage of clicks on your ad relative to the number of times it was shown. Calculated as (Number of Clicks / Number of Impressions) x 100.

### Clicks

The count of times an ad has been clicked by users.

### Conversion Rate (CR)

The percentage of users who complete a desired action (like filling out a form, signing up, or making a purchase). Calculated as (Number of Conversions / Number of Clicks) x 100.

### Cost Per Acquisition (CPA)

The cost to acquire one customer. It is calculated as (Total Cost of Campaign / Number of Conversions).

### Cost Per Click (CPC)

The cost an advertiser pays each time a user clicks on their ad. Calculated as (Total Cost of Campaign / Number of Clicks).

### Cost Per Engagement (CPE)

The cost for each engagement with your ad. Calculated as (Total Cost of Campaign / Total Engagements).

### Cost Per Lead (CPL)

The cost of acquiring a lead. Calculated as (Total Cost of Campaign / Total Leads Acquired).

### Cost Per Mille (CPM)

The cost per 1000 impressions. Calculated as (Total Cost of Campaign / Total Impressions) x 1000.

### Customer Lifetime Value (CLV)

Predicts the net profit attributed to the entire future relationship with a customer. Calculated by projecting the average revenue per user, subtracting the costs associated with them, and adjusting for the time value of money.

### Data Governance

The overall management of the availability, usability, integrity, and security of the data employed in an enterprise, a crucial part of managing data clean rooms.

### Email Click Rate

The percentage of email recipients who clicked on one of the links in your email. Calculated as (Number of Clicks / Number of Emails Sent) x 100.

### Email Open Rate

The percentage of email recipients who open a given email. Calculated as (Number of Opens / Number of Emails Sent) x 100.

### Engagement Rate

Measures the level of engagement that a piece of created content receives from an audience. Calculated as (Total Engagements / Total Reach) x 100.

### Frequency

The average number of times a user sees your ad. Calculated as (Total Impressions / Total Reach).

### Gross Rating Point (GRP)

A measure used in TV that represents the percentage of the target audience reached by an advertisement. Calculated as (Percentage of Target Audience Reached x Frequency).

### Impressions

The number of times your ads were on screen.

### Reach

The number of unique users exposed to an advertisement.

### Return on Ad Spend (ROAS)

Measures the total revenue generated for every dollar spent on advertising. Calculated as (Revenue from Ad Campaign / Cost of Ad Campaign).

### Return on Investment (ROI)

Measures the profitability of an investment. Calculated as [(Gain from Investment - Cost of Investment) / Cost of Investment] x 100.

### Share of Voice (SOV)

Measures the market your brand owns compared to your competitors. Calculated as (Your Brand's Advertising / Total Market Advertising) x 100.

### Video Completion Rate (VCR)

The percentage of all video views that are played to completion. Calculated as (Number of Completed Views / Number of Total Video Views) x 100. This metric is particularly important in assessing the effectiveness of video content in maintaining viewer engagement to the end.

### Viewability

The percentage of ads which are actually seen by users. An ad is usually considered viewable if at least 50% of its pixels are visible on the screen for more than one second. This metric is crucial for advertisers to ensure their ads have the opportunity to make an impact on the audience.