Performance Marketing Glossary
The HQ Digital Marketing Glossary
Every term a performance marketer, D2C founder, or CMO needs to know — defined from the trenches, not from a textbook.
24
Terms Defined
6
Categories
12+
Years Experience
Most marketing glossaries are written by content teams who have never run a live campaign. This one is different. Every definition here is written from 12+ years of running campaigns for brands like Godrej, Reliance, and high-growth D2C businesses — with the real-world nuance that textbooks miss.
Jump to Category
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Meta Ads & Campaign Mechanics
5 TERMS
Meta Ads & Campaign Mechanics
5 TERMS
Advantage Plus (ASC)Meta’s AI-powered campaign type that automates targeting, placements, and creative. When to use it — and when it burns budget.Read Definition →Attribution WindowThe time window Meta uses to credit conversions to your ads. Most brands use the default and inflate their numbers.Read Definition →CPM (Cost Per Mille)What you pay per 1,000 impressions on Meta. Why it’s rising, what drives it, and how to bring it down.Read Definition →Creative FatigueWhen your audience has seen your ad too many times and performance drops. How to detect it before your ROAS tanks.Read Definition →Creative TestingThe systematic framework for testing ad creatives — hooks, formats, CTAs — so you scale winners, not guesses.Read Definition →
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Revenue & ROAS Metrics
5 TERMS
Revenue & ROAS Metrics
5 TERMS
ROAS (Return on Ad Spend)The most tracked and most misunderstood metric in performance marketing. Why platform ROAS lies to you.Read Definition →Blended ROASTotal revenue divided by total ad spend across all channels. The metric that tells the real story.Read Definition →Break-Even ROASThe exact ROAS you need to not lose money. If you don’t know this number, you’re flying blind.Read Definition →Gross MarginRevenue minus COGS. The number that decides whether your ROAS target is 2x or 5x.Read Definition →Contribution Margin (CM1 & CM2)What’s left after variable costs. The real profitability metric for D2C brands, beyond vanity revenue.Read Definition →
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Customer Economics
5 TERMS
Customer Economics
5 TERMS
Customer Lifetime Value (CLV)How much a customer is worth over their entire relationship with your brand. The number that changes every decision.Read Definition →CAC (Customer Acquisition Cost)What it actually costs to acquire one customer. Most brands calculate it wrong by ignoring half the costs.Read Definition →Loaded CACCAC with all hidden costs included — team salaries, tools, creative production. The honest version of CAC.Read Definition →LTV:CAC RatioThe single ratio that tells you if your business model is sustainable. Below 3:1? You have a problem.Read Definition →Payback PeriodHow many months it takes to recover your customer acquisition cost. Determines your cash flow runway.Read Definition →
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Marketing Efficiency & Spend
4 TERMS
Marketing Efficiency & Spend
4 TERMS
MER (Marketing Efficiency Ratio)Total revenue divided by total marketing spend. The north star metric replacing channel-level ROAS.Read Definition →Cost Per Lead (CPL)What you pay to generate one lead. Benchmarks vary wildly by industry — here’s what good looks like.Read Definition →Marketing Spend RatioMarketing budget as a percentage of revenue. Industry benchmarks and how to know if you’re over or under-spending.Read Definition →Operating LeverageWhen revenue grows faster than costs. The inflection point every D2C brand is chasing.Read Definition →
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D2C Retention & CRM
3 TERMS
D2C Retention & CRM
3 TERMS
RFM AnalysisSegment customers by Recency, Frequency, and Monetary value. The retention framework that separates D2C amateurs from operators.Read Definition →D2C Retention RateWhat percentage of customers come back. Benchmarks, the leaky funnel diagnosis, and how to fix it.Read Definition →WhatsApp vs Email MarketingWhich retention channel wins for D2C in India? Open rates, costs, use cases — compared head to head.Read Definition →
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Data & Attribution
2 TERMS
Data & Attribution
2 TERMS
First-Party DataData you collect directly from your customers. In a post-cookie world, this is your most valuable marketing asset.Read Definition →Full-Funnel AttributionMapping every touchpoint from first click to purchase. Why every attribution model is wrong — and why it still matters.Read Definition →
Go Deeper
Knowing Definitions Is Not Enough
These terms only matter when you can apply them in live campaigns. Learn how in the Dream Performance Marketing Masterclass — built by a practitioner, not a professor.
Written By
Apurv Singh
Founder, HQ Digital. 12+ years in performance marketing, SEO, and growth strategy. Has worked with brands like Godrej, Reliance, and 50+ D2C businesses. TEDx speaker. Runs one of India’s largest performance marketing education platforms.