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What is ROAS? And other digital marketing acronyms

5 min read

What is ROAS? And other digital marketing acronyms

Starting from scratch in the world of digital marketing can be quite a challenge.

If you're new to this world and have no idea of everything it involves, the challenge tends to be even bigger. Acronyms, expressions, and jargon are everywhere in digital marketing. And many of them can confuse even the most experienced digital product creators and strategists.

If you don't know what ROAS or SaaS means, for example, or you're always unsure when you hear other terms, don't worry. In this article, Cademí's team of specialists explains the most popular digital marketing acronyms.

Keep reading to discover these digital marketing acronyms:

What is ROAS

ROAS stands for Return on Advertising Spend. It's the metric that shows, objectively, how much revenue your ad campaign is generating relative to the amount invested. It's an essential metric for anyone running paid traffic on social media, because it lets you scale campaigns in a healthy way without blowing your budget.

The calculation is very simple:

ROAS = revenue generated ÷ amount spent on ads

For example, imagine you invested R$1,000 and brought in R$4,000. In this case, your ROAS is 4.

If your ROAS is below one, you're losing money. If it's one, you're breaking even. For digital products, the market always aims for a ROAS of at least 2. But that varies by niche, product format, and so on.

What does ROI mean

While ROAS focuses on advertising spend, the well-known ROI (Return on Investment) calculates the return on any kind of investment, whether in ads, staff, tools, or time.

Formula: ROI = (profit - investment) ÷ investment x 100

+ How to turn curious leads into high-ticket customers

Example: invested R$2,000 and made R$6,000 in profit? That's a 200% ROI.

This metric helps you identify what is and isn't working in your online business.

What is LTV?

LTV shows how much a customer spends, on average, over the entire “relationship” with your business.

Understanding LTV is key to forecasting revenue, optimizing offers, and knowing how much it's worth investing to acquire a new customer.

What is CAC?

CAC (Customer Acquisition Cost) represents how much you spend, on average, to win each new customer.

When you compare CAC with LTV, you get a clear picture of your business's long-term viability.

What is a CTA for?

CTA stands for call to action. These are the prompts that guide users to the next step: click, buy, sign up, download something.

A good CTA can be the difference between someone leaving your site and becoming your customer.

What are UTMs?

UTMs are parameters you add to links to track where your traffic comes from.

They're how you find out whether a lead came from an email, an ad, an Instagram post, or another channel.

At Cademí, we talk about this a lot because it's a powerful way to understand audience behavior and optimize campaigns.

What does CRO mean?

CRO is the set of strategies aimed at increasing your conversion rate.

In other words, it helps you turn more visitors into leads, more leads into students, and more students into repeat buyers.

A/B tests, layout changes, persuasive copy, and social proof are examples of CRO actions.

What is SaaS?

SaaS stands for Software as a Service, a business model in which customers pay to use cloud-based software, usually with ongoing updates and support.

A good example is Cademí, which is a SaaS. That means you don't need to install anything or worry about the technical side. We take care of the infrastructure, and you take care of sales.

Diamond Funnel: the acronym that changes the game for your online business

The Diamond Funnel is a methodology exclusive to Cademí, created for digital product creators who want to scale without relying only on launches or cold traffic.

While a traditional funnel focuses only on the first sale, the Diamond Funnel follows the student throughout the whole journey, generating repeat purchases, increasing LTV, and reducing CAC with smart automations.

+ How to get a cheap CPL in your online business

It's a strategy designed for those who want predictability, recurring revenue, and consistent profit, all inside Cademí's own platform.

The new language of online business

Learning acronyms like ROAS, LTV, CAC, SaaS, and UTM and understanding what the Diamond Funnel is isn't just a matter of vocabulary. It's about mastering the language of people who really want to grow and build a legacy online.

Whether you're taking your first steps or looking to scale what you've already built, understanding these concepts is the first step. The second? Putting it all into practice with the right strategies for your online business.

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