Customer Acquisition Cost (CAC) definition

Customer Acquisition Cost (CAC)

Average cost to acquire a new user via marketing and advertising, calculated as Total Acquisition Spend ÷ New Users Acquired.

KPIs

More terms of KPIs

Conversion Rate (CVR) mobile-advertising-glossary-metrics

CVR reflects the percentage of users who completed a desired action after clicking an ad: CVR = (Conversions / Clicks) * 100. It's a key performance indicator for measuring the effectiveness of the user journey.

Churn Rate mobile-advertising-glossary-metrics

The churn rate is the inverse of retention—it tracks the percentage of users who stop using the app over a specific time period. High churn indicates poor engagement or satisfaction.

Conversion mobile-advertising-glossary-metrics

A conversion is any predefined action completed by a user after interacting with an ad, such as installing an app, signing up, making a purchase, or subscribing to a service. It's a primary measure of campaign success.

Retention Rate mobile-advertising-glossary-metrics

Retention rate measures the percentage of users who return to the app after a certain time (e.g., Day 1, Day 7, Day 30). It’s a key metric for user engagement and product stickiness.

Incremental Sales Uplift mobile-advertising-glossary-metrics

Measures additional sales driven by the campaign beyond baseline sales, typically via A/B testing or modeled attribution.

Return on Ad Spend (ROAS) mobile-advertising-glossary-metrics

ROAS measures the revenue earned for every dollar spent on advertising: ROAS = Revenue / Ad Spend. A ROAS > 1.0 indicates a positive return. It’s crucial for understanding campaign profitability.

Incremental Reach mobile-advertising-glossary-metrics

The additional audience reached by a campaign that wouldn’t have been reached through other media or tactics.

Lifetime Value (LTV) mobile-advertising-glossary-metrics

LTV is the projected revenue a user is expected to generate during their entire relationship with the app. It's a key metric for assessing user quality and long-term campaign impact.

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