Marketing Acronyms

A

ARPU (Average Revenue Per User)

The average amount of revenue generated per user or account.

• Synonyms: ARPA (Average Revenue Per Account).

C

CAC (Customer Acquisition Cost)

The total cost of convincing a potential customer to buy a product or service. Includes ad spend, agency fees, and sales commissions.

CPC (Cost Per Click)

The actual price you pay for each click in your pay-per-click (PPC) marketing campaigns (e.g., Google Ads).

CPM (Cost Per Mille)

The cost per 1,000 impressions. A standard metric for display advertising and brand awareness campaigns.

CTR (Click-Through Rate)

The percentage of people who click on your ad after seeing it.

• Formula: (Clicks / Impressions) * 100

L

LTV (Lifetime Value)

The total net profit attributed to the entire future relationship with a customer.

• Goal: You generally want an LTV:CAC ratio of 3:1 or higher.

R

ROAS (Return on Ad Spend)

A metric used to measure the effectiveness of a digital advertising campaign.

• Formula: Revenue from Ad / Cost of Ad
• Note: Unlike ROI, ROAS looks only at the specific ad spend, not total overhead.