Terminology FAQ

Click-through rate (CTR) is the total number of clicks divided by the total number of impressions.
- CTR is calculated as Total Clicks over Total Ad Impressions

Conversion Rate (CR) is the percentage of shoppers that clicked on an ad and purchased the product. CR measures the number of purchase events for an individual item. For example if a shopper clicks on an ad for Item A and purchases a quantity of 10 in a single purchase, then returns and purchases 5 more of Item A this will count as 2 purchases of Item A. The revenue for Item A is multiplied by 15 and the CR count will be 2.
- CR is calculated as Total Purchases over Total Clicks

Request counts are based on when the e-commerce website sends an ad serving request to MCM’s Decision API. For example, if MCM receives an ad request for a page where ads could potentially be shown this request will count towards the total request count metric.

Cost Per Click (CPC) is the cost for each click on an advertisement. CPC is calculated as the sum of money spent on CPC ads divided by the sum of clicks on CPC ads.

CPM (Cost Per Mille) is the cost advertisers pay per 1,000 impressions. CPM is the sum of money spent on CPM ads divided by the sum of impressions from CPM ads, multiplied by 1000

Direct Purchases refer to purchases that are directly attributable to a specific action, such as clicking on an advertisement. For example, a direct purchase is defined as the purchase of an item that was part of an advertisement. This means that the purchase is directly linked to the user's interaction with the ad.

Indirect purchases refer to the purchases of items from the same seller that are different from the advertised item. For example, if an advertisement promotes an Item A and a user clicks on the ad for Item A, but ends up purchasing Item B from the same seller, this purchase is considered an indirect purchase.

Total Sales is the value of Direct sales, plus Indirect sales (if applicable) attributed to an ad account or ad campaign.

Total sales revenue from purchases directly attributable to the ad campaign. See What are direct purchases above.

Total sales revenue from purchases indirectly attributable to the ad campaign. See What are indirect purchases above.

Average Order Value (AOV) refers to the average number of orders placed within a specific period.
- AOV is calculated as Total Ad Revenue over Total Orders

Cost Per Click (CPC) ad spend is the total value of accrued clicks. Ad Spend is calculated as the sum cost of all clicks paid.
Cost Per Mille (CPM) ad spend refers to the cost of advertising based on the number of impressions an ad receives. Advertisers pay a fixed amount for every 1,000 impressions of their ad, regardless of whether it is clicked.
Cost Per Time (CPT) ad spend refers to the total advertising spent on a CPT campaign. Advertisers pay a fixed cost for their ads to be displayed for a specific period, regardless of the number of impressions or clicks the ad receives.
Pay-Per-Order (PPO) ad spend refers to the advertising cost incurred in a PPO campaign. Advertisers, such as restaurants on a food delivery platform, pay a commission percentage for each order that is attributed to their advertisement.

Return on Advertising Spend (ROAS) is the amount of revenue that is earned for every dollar spent on a campaign. ROAS represents the profitability of a campaign. A low value may indicate the campaign is not profitable for the advertiser, while a high value may suggest that ad spend is not utilized efficiently and more sales could be generated with the same budget.
- ROAS is calculated as Ad Spend over Ad Attributed Revenue

Halo ROAS (Return on Ad Spend) is a metric that captures both direct and indirect attributions of ad campaigns. Halo ROAS includes indirect attributions as well, providing a more comprehensive view of an ad campaign's effectiveness. If Halo ROAS is enabled, the performance dashboard will display metrics for both direct and indirect sales, as well as the combined total ROAS.

A daily budget is the amount of money allocated to be spent on a campaign each day. MCM, optimizes the campaign to spend on the best days and times of the week.

A weekly budget allows customers to set and manage their advertising budgets on a weekly basis. This adds flexibility by enabling advertisers to set either a daily or weekly budget and allows for tailored budget management.

Budget utilization is the percentage of the budget which was spent on a campaign, indicating how much of the budget has been used within a given period. For example, if a campaign has a budget utilization of 90%, it means that 90% of the allocated budget was spent.
- Budget Utilization is calculated as Total Ad Spend over Total Daily Budget

The empty response rate is the percentage of ad requests that do not receive any response. This can occur for a variety of reasons, for example if a user searches for a term and the system cannot find any relevant ad items to display, this would count as an empty response. Some empty responses are inevitable due to rare search terms or typos.

Fill rate is the percentage of ads served divided by the total number of ad requests.