1.4 Key Terms

A handful of marketing concepts will appear throughout the book without re-introduction. They are worth a quick glance before moving on.

• CAC (Customer Acquisition Cost) — what it costs to acquire one new customer.
• LTV / CLV (Customer Lifetime Value) — the expected revenue (or profit) from a customer over their relationship with the brand.
• ROAS (Return on Ad Spend) — revenue per dollar of ad spend, usually short-window and channel-specific.
• Incrementality — the causal lift attributable to an action, as opposed to the observed correlation. Most of Part 3 is about this.

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Jin, Yuxue, Yueqing Wang, Yunting Sun, David Chan, and Jim Koehler. 2017. Bayesian Methods for Media Mix Modeling with Carryover and Shape Effects.

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Vizard, Sarah. 2019. “P&G Shifts from Targeting ‘Generic Demographics’ to ‘Smart Audiences’.” Marketing Week, July. https://www.marketingweek.com/pg-targeting-generic-demographics-to-smart-audiences/.