CPM: Cost Per Mille (Cost per thousand impressions)
A bidding mechanism for feed ads, commonly used to measure advertising costs.
CPC: Cost Per Click
Used to evaluate click-through costs.
CTR: Click-Through Rate
Calculated as clicks divided by impressions, indicating content quality.
CVR: Conversion Rate
CVR = Conversions ÷ Landing Page Visits, measuring overall ad effectiveness.
CPA: Cost Per Acquisition
Calculated as total ad spend ÷ conversions, serving as a key advertising cost metric.
ROI: Return on Investment
Measures overall advertising profitability.
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ROAS: Return on Ad Spend
Revenue from ads ÷ ad spend, reflecting advertising efficiency.
ECPM (Effective Cost Per Mille):
= Estimated CTR × Estimated CVR × Bid × 1,000
GPM (Gross Merchandise Value per Mille):
= Average Order Value × CTR × CVR × 1,000
Average GPM = Total Plays ÷ Total GMV
POAS = ECPM ÷ GPM
Estimated CPA = CPM ÷ GPM
Estimated CPA = ROAS × Product Price
Profit Estimation:
Compare CPA with pricing (cost + shipping + logistics + ads + depreciation + platform fees) or market benchmarks. Minimum 15% margin required. Lower CPA preferred.
- CPA > $20: High-risk entry
- CPA 10−10−20: Normal range
- CPA < $10: Ideal product category
oCPM: Optimized Cost Per Mille
AI-optimized bidding model focusing on conversions (installs/sign-ups/purchases) at minimal cost per impression.
eCPM: Effective Cost Per Mille
Revenue metric: (Total Earnings ÷ Impressions) × 1,000. Higher values indicate better ad performance.
ROI: (Net Profit ÷ Total Investment) × 100%
Measures overall campaign profitability.
ROAS: (Ad-generated Revenue ÷ Ad Spend) × 100%
Quantifies revenue per advertising dollar.
Creative:
All advertising elements (images/videos/copy/landing pages) crucial for user engagement.
Ad Group:
Campaign management unit containing creatives with shared objectives/targeting/budget.
Cost Spiral:
Uncontrolled ad spending due to abnormal CPC/CVR ratios, requiring immediate optimization.
Preferred Accounts:
High-volume/long-term advertisers receiving discounted rates and priority services on platforms like TikTok.
Targeted Clicks:
Clicks directing users to specified destinations (websites/app stores).
Conversions:
Completed actions matching campaign objectives.
Cost Per 1k Accounts Reached:
Estimated cost to reach 1,000 unique users.
CPA: Cost Per Action = Total Spend ÷ Conversions
Targeted CPC: Cost Per Click = Total Spend ÷ Targeted Clicks
CPM: Cost Per Mille = (Total Spend ÷ Impressions) × 1,000
Targeted CTR: Click-Through Rate = (Targeted Clicks ÷ Impressions) × 100%
CVR (Click-based): Conversion Rate = (Conversions ÷ Clicks) × 100%
Impressions: Ad display count
Paid Likes: Video likes within 24h of ad exposure
Unique Reach: Estimated distinct users seeing ads
Total Spend: Estimated campaign/ad group expenditure
Total Engagement: All interactions (likes/comments/shares/follows/clicks)
