Important Ad Performance Metrics
- The metrics you’ll use will depend on your marketing campaign and its objectives.
- Common metrics in digital marketing are:
CPM: (Cost per mille)
is the cost or price for every 1,000 impressions an ad receives. An impression is counted when the user sees your ad or the number of times the ad is shown whether it’s clicked on or not.
CTR: (Click through rate)
the ratio between the number of users who click on the ad to the number of impressions the ad received.
CPC: (Cost per click)
It’s the cost that the advertiser pays when a user clicks on an ad.
CPA: (Cost per acquisition)
is the cost where the advertiser is charged only for a specific action or after fulfilling a specific purpose.
ROI: (Return on investment)
is expressed as a percentage and is calculated by dividing the net profit of an investment by the total cost of the investment.
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