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Ad Tech Glossary
User Engagement MetricsProfitability & Revenue MetricsThe Ecosystem: Who Does WhatAuction & Delivery MechanicsDeal Types & Programmatic BuyingPrivacy & AttributionAd FormatsPerformance MetricsCost & Bidding Metrics
ROAS D0 / D1 / D3 / D7 (Return on Ad Spend)
Revenue generated per dollar of ad spend, measured at different time intervals after the ad interaction. Formula: Revenue ÷ Spend. A ROAS of 2:1 means $2 earned for every $1 spent. Statuses: healthy, unhealthy, critical, excellent.
Platform ROAS
ROAS calculated for a specific platform, used to compare efficiency across channels and guide budget allocation.
ARPU (Average Revenue Per User)
Total revenue divided by total users over a period. Shows how much each user generates on average. Used to benchmark against eCPI.
ARPPU (Average Revenue Per Paying User)
Revenue divided by only the users who made a purchase. A more focused monetization metric than ARPU.
LTV (Lifetime Value)
Total revenue a user is expected to generate over their entire relationship with the app. The key metric for justifying acquisition costs — ideally LTV should significantly exceed eCPI.
SoW (Share of Wallet)
The percentage of a user's total spending in a category that goes to your app. Formula: Your App Spend ÷ Total Category Spend × 100. Indicates loyalty and competitive positioning.
Profit (Realized)
Revenue minus Gross Spend. The bottom-line measure of whether a campaign is making or losing money.
Margin
Profit as a percentage of revenue. Formula: (Revenue − Spend) ÷ Revenue × 100. Reflects how efficiently each revenue dollar is earned.
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