3-3 vocab

Average Order Value (AOV)

Measures the average monetary transaction value for all customer orders, providing insights into purchasing behavior.

Cost of Goods Sold (COGS)

The cost a company pays for the goods it sells; includes the cost of raw materials, direct labor, and manufacturing costs.

Cost Per Click (CPC)

A digital marketing metric representing the price an advertiser pays each time a user clicks on their ad.

Cost Per Impression (CPI)

A digital marketing metric representing the cost an advertiser pays for every impression of their ad.

Cost Per Mille (CPM)

A digital marketing metric representing the cost an advertiser pays for every one thousand impressions of their ad.

Customer Acquisition Cost (CAC)

The cost to acquire a customer.

Customer Lifetime Value (LTV)

A marketing metric estimating the total revenue a customer will generate over their duration as a customer.

Gross Margin

The difference between sales revenue and COGS, divided by sales revenue, expressed as a percentage.

Gross Profit

Sales revenue minus cost of goods sold (COGS).

Net Profit

Gross Profit minus all expenses, often referred to as a company's 'bottom line'.

Return on Ad Spend (ROAS)

A digital marketing metric measuring the return on ad dollars spent, comparing revenue generated to ad cost.

Return on Investment (ROI)

Measures the gain or loss generated on an investment compared to the invested amount, normally expressed as a percentage.