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Digital Marketing Metrics

Digital marketing metrics are essential for measuring campaign performance. The primary metrics include conversion rate (the percentage of users who convert), cost per conversion (the cost of each conversion), and return on ad spend (ROAS, the revenue generated per ad spend). Supporting metrics that provide additional context include cost per mille (CPM, the cost per 1000 impressions), click through rate (CTR, the percentage of impressions that result in a click), and customer acquisition cost (CAC, the cost of acquiring a new customer). Together, these metrics help marketers assess campaign efficiency, ROI, and opportunities for optimization.

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46 views12 pages

Digital Marketing Metrics

Digital marketing metrics are essential for measuring campaign performance. The primary metrics include conversion rate (the percentage of users who convert), cost per conversion (the cost of each conversion), and return on ad spend (ROAS, the revenue generated per ad spend). Supporting metrics that provide additional context include cost per mille (CPM, the cost per 1000 impressions), click through rate (CTR, the percentage of impressions that result in a click), and customer acquisition cost (CAC, the cost of acquiring a new customer). Together, these metrics help marketers assess campaign efficiency, ROI, and opportunities for optimization.

Uploaded by

Saboen Boelly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Digital

Marketing
Metrics
A Must-Know Guide!
Irene Mariska
Performance Marketer | Revenue Generator Cadet
Primary Metrics Summary
Metric Measure... Note

Shows how effectively you


CVR The percentage of users ad / landing page is
Conversion Rate who convert convincing users to take
desired action

Cost per The cost of each Important for assessing


Conversion conversion campaign efficiency, ROAS

ROAS Revenue generated per ad


Vital for understanding
Return on Ad campaign profitability and
spend
Spend efficiency

It considers all sales and


CAC The cost of acquiring a marketing expenses incurred
Customer
customer during customer acquisition
Acquisition Cost
process
Supporting Metrics Summary
Metric Measure... Note

CPM The cost per 1000 ad Comparing ad efficiency


Cost per Mille impressions across platforms

CTR
Ad effectiveness in Driving clicks and potential
Click Through
attracting clicks conversion
Rate

CPC Important for budgeting and


The cost of each ad click
Cost per Click campaign optimization

Essential for increasing


The number of times an ad
Impression brand exposure and
is shown
awareness

The number of unique Important for expanding the


Reach
users who see an ad potential audience reach

The average number of Impact ad effectiveness and


Frequency
times users see an ad recall

AOV
Average value of each Directly impacts revenue
Average Order
order generated per conversion
Value

The percentage of users


Indicate landing page
Bounce Rate who leave without
experience
interacting
CPM (Cost per Mille)
Cost per 1000 impressions
Impression is the number of appearance of your Ad

AD SPEND / IMPRESSIONS * 1000

Factors that can affect your CPM:


1. Supply and demand (of ad space)
2. Seasonality
3. Choice of platform
4. Audience size (more precise, more expensive)
5. Campaign Target (cost gets higher as you go
lower on the funnel)
6. Geography

*Source: Impulse-Analytics.com
CPC (Cost per Click)
Average cost of each link click

AD SPEND / NUMBER OF CLICKS

Factors that can affect your CPC:


1. Bid Amount
2. Quality Score
a. Keyword relevance
b. Expected CTR (Click Through Rate)
c. Landing page experience
3. Competitiveness of an auction

*Source: Semrush
CTR (Click Through Rate)
Percentage of ad impressions that resulted in a click

CLICKS / IMPRESSIONS * 100

CTR shows how successful your ads are in attracting


clicks from potential customers

CTR is important for:


Driving cost efficiency (higher CTR = more value
for advertising spend)
Evaluate effectiveness of campaigns

*Source: Semrush
IMPORTANT:
Great CPM, CPC, CTR
means nothing if they
don't convert!
Better to have
2% CTR and 20% conversion rate
than
30% CTR with 0 conversion
CVR (Conversion Rate)
Percentage of users who take a specific action that you
want them to take after clicking on your ad.

CONVERSIONS / CLICKS * 100

It directly measures how effective your ad and landing page


are at convincing users to take the desired action.

How to Improve CVR


Relevance: Ad & Landing Page align with user's intent
and specific desired action
Clear Call-to-Action (CTA)
Page Speed
Mobile Optimization
Trust & Credibility (customer reviews, security badges,
endorsement from reputable source)

*Source: Semrush
Cost Per Conversion
Cost of getting a specific conversion

AD SPEND / CONVERSIONS

Conversion could include actions like:


1. Sales
2. Filling out a contact form
3. Subscribing to a newsletter
4. Signing up for a free trial
5. Downloading a whitepaper or e-book
6. Completing a survey, etc.

Some other terms : Cost per Acquisition, Cost per


Action, Cost per Result

*Source: Bloomreach
ROAS (Return on Ad Spend)

Revenue generated for money spent on advertising

REVENUE FROM ADS / AD SPEND

ROAS helps advertisers understand how effective their


advertising campaigns are in driving revenue. Higher ROAS
values are generally more desirable as they indicate a more
efficient and effective advertising campaign.

Example :
You spent $2000 on PPC campaign
It resulted in $8000 in revenue

ROAS = $8000 / $2000 = 4

*Source: Semrush
CAC (Customer Acquision Cost)
Percentage of ad impressions that resulted in a click

CAC = (cost of sales + cost of marketing)


new customer acquired

Expenses to consider:
Ad Spend
Salaries
Creative cost
Technical cost
Inventory Upkeep
etc...

*Source: Semrush
Have I Missed Any Essential
Metrics?

Comment Below!

Irene Mariska
Performance Marketer | Revenue Generator Cadet

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