In online advertising campaigns, especially within paid systems like Google Ads or Meta Ads, various acronyms are used to describe settlement models and Key Performance Indicators (KPIs).
Below is a comprehensive summary of the most important terms:
1. Settlement Models: "You Pay For":
| Acronym | Full Name | Explanation |
|---|---|---|
| CPA | Cost Per Action / Acquisition | You pay only when a user performs a specific, desired action (conversion) – e.g., fills out a form, places an order, or downloads a file. |
| CPL | Cost Per Lead | You pay for acquiring a potential customer (lead) who has left their contact details. This is a variant of CPA. |
| CPM | Cost Per Mille | You pay a set amount for every 1,000 impressions of your ad, regardless of clicks. Used mainly for brand awareness. |
| CPV | Cost Per View | You pay for each view of your video ad (e.g., on YouTube), usually after reaching a certain threshold (e.g., 30 seconds). |
| CPS | Cost Per Sale | You pay only when the ad directly leads to a finalized sale. Common in affiliate marketing and e-commerce. |
| CPI | Cost Per Install | You pay when a user installs a mobile application after clicking the ad. |
| CPO | Cost Per Order | You pay for each order placed, regardless of whether it has been paid yet. A variant of CPA. |
2. Key Performance Indicators (KPIs) and Other Acronyms:
| Acronym | Full Name | Explanation |
|---|---|---|
| CTR | Click-Through Rate | The percentage ratio of ad clicks to the total number of impressions. |
| CR / CVR | Conversion Rate | The percentage ratio of users who performed a desired action to the total number of users (or clicks). |
| ROI | Return On Investment | A profitability ratio: measures the overall profit or loss generated by an investment relative to its cost. |
| ROAS | Return On Ad Spend | Measures the revenue generated directly from an ad campaign relative to the amount spent on it. |
| QS | Quality Score | In Google Ads: An estimate of the quality and relevance of your keywords, ads, and landing pages. It affects your CPC and ad position. |
