LinkedIn Advertising Glossary

Where there’s marketing, there are acronyms. Here are some of the most common ones you'll encounter, along with Abe's definitions for each.

A

ABM

A strategic approach where marketing efforts are focused on specific accounts within a target organization rather than a broader audience, tailoring campaigns to individual customer needs.
Read more

CAC

Customer Acquisition Cost. The total cost associated with acquiring a new customer through LinkedIn advertising efforts. This includes all expenses related to ad spend, marketing campaigns, and sales efforts divided by the number of new customers gained within a specific period.
Read more

CPC

Cost-Per-Click. The amount you pay each time someone clicks on your ad. This model is commonly used for campaigns focused on driving traffic to your website or landing page. For example, if you spend $100 on an ad campaign and receive 50 clicks, your CPC would be $2.00.
Read more

CPM

Cost-Per-Mile. The cost of 1,000 impressions of your ad. This pricing model is often used for brand awareness campaigns where the goal is to reach as many people as possible. Example: If your ad costs $10 for 1,000 impressions, your CPM is $10. This means you pay $10 every time your ad is shown 1,000 times.
Read more

CTR

Cost-Per-Lead. The percentage of people who click on your ad after seeing it. This metric helps gauge the effectiveness of your ad in attracting interest. For example, if your ad receives 1,000 impressions and 50 clicks, your CTR would be (50 clicks / 1,000 impressions) x 100 = 5%.
Read more

ICP

A detailed description of the type of company or customer that would benefit most from a product or service, used to guide marketing and sales efforts.
Read more

LTV

Lifetime Value. The projected revenue that a customer will generate during their relationship with your business. Understanding LTV helps you determine how much you can afford to spend on acquiring customers through LinkedIn ads.
Read more

MOFU

Middle-of-the-Funnel. MOFU represents the stage where leads have expressed interest and are considering a purchase. This phase involves nurturing these leads and providing them with more detailed information to help them evaluate options. Marketing efforts in MOFU focus on building relationships and providing value.
Read more

MQL

An MQL is a lead that has shown interest in a company's product or service and is deemed more likely to become a customer compared to other leads. This designation is often based on specific criteria, such as engagement with marketing materials or demographic factors. Individual company definitions may vary.
Read more

ROAS

Return on Ad Spend. ROAS measures the revenue generated for every dollar spent on advertising. It helps businesses assess the effectiveness and profitability of their advertising campaigns. A higher ROAS indicates a more successful campaign.
Read more

ROI

A measure of the profitability of your LinkedIn advertising campaigns, calculated as (Net Profit from LinkedIn Ads / Cost of LinkedIn Advertising) x 100. This metric helps you evaluate how effectively your LinkedIn ad spend translates into revenue, allowing you to assess the performance of your targeting, ad creatives, and overall strategy on the platform.
Read more

TOFU

Top-of-the-Funnel. TOFU refers to the initial stage of the marketing funnel where potential customers first become aware of a brand or product. At this stage, the focus is on attracting a broad audience and generating leads. Marketing efforts are primarily aimed at creating awareness and interest.
Read more