Marketing, creator & AI terms, defined.
Clear, plain-English definitions of the 22 terms that come up most in paid ads, the creator economy, and AI generation — each with the formula or context you need, and the free tool to put it to work.
Ad Metrics
ROAS (Return on Ad Spend)
ROAS (return on ad spend) is the revenue you earn for every $1 of advertising spend — total ad-driven revenue divided by ad spend.
CPM (Cost per Mille)
CPM (cost per mille) is the price to show your ad 1,000 times — ad spend divided by impressions, multiplied by 1,000.
CPC (Cost per Click)
CPC (cost per click) is the average amount you pay each time someone clicks your ad — ad spend divided by clicks.
CAC (Customer Acquisition Cost)
CAC (customer acquisition cost) is the average cost to win one new customer — total sales and marketing spend divided by the number of new customers.
LTV (Customer Lifetime Value)
LTV (customer lifetime value) is the total profit you expect from a customer over the whole relationship, not just their first purchase.
CTR (Click-Through Rate)
CTR (click-through rate) is the share of people who click after seeing your ad or link — clicks divided by impressions, as a percentage.
Creator Economy
RPM (Revenue per Mille)
RPM (revenue per mille) is how much a creator earns per 1,000 views after the platform's cut — total earnings divided by views, times 1,000.
Engagement Rate
Engagement rate is the share of an audience that interacts with a post — likes and comments divided by followers (or reach), as a percentage.
UGC (User-Generated Content)
UGC (user-generated content) is authentic, creator-style content made to look like a real person's post rather than a polished brand ad.
Ad Hook
An ad hook is the first few seconds of a video ad — the opening line or visual that stops the scroll and earns the next three seconds of attention.
AI Generation
Text-to-Video
Text-to-video is AI that turns a written prompt into a short video clip, generating the motion, scene, and subjects from the description alone.
Image-to-Video
Image-to-video is AI that animates a still image into a video clip, adding motion while keeping the original picture as the starting frame.
Text-to-Image
Text-to-image is AI that generates a picture from a written prompt, creating the composition, subjects, and style from the description.
Lip Sync (AI)
AI lip sync automatically matches a person's or avatar's mouth movements to an audio track, so the visuals look like they're speaking the words.
Diffusion Model
A diffusion model is the AI architecture behind most image and video generators: it starts from random noise and gradually denoises it into a coherent result guided by your prompt.
LoRA (Low-Rank Adaptation)
A LoRA is a small add-on that fine-tunes an AI image or video model to reproduce a specific style, character, product, or face without retraining the whole model.
Prompt
A prompt is the text instruction you give an AI model describing what to generate — the more specific it is, the more predictable the result.
Negative Prompt
A negative prompt tells an image or video model what to avoid — a list of elements, styles, or artifacts you don't want in the result.
Seed
A seed is the number that sets an AI generator's starting randomness — reusing the same seed and prompt reproduces the same result.
Upscaling (AI)
AI upscaling increases an image or video's resolution while inventing plausible detail, producing a larger, sharper result than simple stretching.
Inpainting
Inpainting is AI editing that regenerates a masked region of an image — to remove an object, fix a flaw, or replace part of the picture — while blending with the rest.
Video & Format
Free calculators & creator tools
Every metric here has a free, no-login calculator — ROAS, CPM, engagement rate, creator earnings, and more.
