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Metrics we look at
Click-Through Rate (CTR)
CTR measures the effectiveness of your ad in getting people to click on it. It is calculated as the number of clicks divided by the number of impressions (or views) and is usually expressed as a percentage.
Conversion Rate
The conversion rate measures the percentage of users who take a desired action after clicking on an ad. This action could be making a purchase, signing up for a newsletter, or filling out a contact form
Cost Per Click (CPC)
CPC is the amount you pay for each click on your ad. It’s an essential metric to monitor to ensure you are getting a good value for your advertising spend.
Cost Per Conversion
CPC is the amount you pay for each click on your ad. It’s an essential metric to monitor to ensure you are getting a good value for your advertising spend.
Return on Ad Spend
ROAS measures the revenue generated for every dollar spent on advertising. It’s calculated as Revenue / Ad Spend. For example, if you spend $100 on advertising and generate $500 in revenue, your ROAS would be 5x.
Customer Acquisition Cost
CAC measures the cost of acquiring a new customer. It includes all marketing and sales expenses associated with acquiring customers.
Average Order Value
AOV measures the average amount a customer spends on each purchase. Increasing AOV can be a strategy to boost revenue.
Quality Score
In pay-per-click (PPC) advertising, platforms like Google Ads assign a quality score to ads. It considers factors like ad relevance, landing page quality, and expected click-through rate. A higher quality score can lead to lower CPC and better ad placement.
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- November 19, 2023
