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Ad metrics explained

By N8 Media · Updated · How we work

Ad metrics explained

Ad dashboards are full of numbers. These are the ones worth understanding.

Metric What it means Formula
CPM Cost per 1,000 impressions Spend ÷ impressions × 1,000
CTR Click-through rate Clicks ÷ impressions
CPC Cost per click Spend ÷ clicks
Conversion rate Share of clicks that become a lead or sale Conversions ÷ clicks
CPA Cost per acquisition (lead or sale) Spend ÷ conversions
ROAS Return on ad spend Revenue from ads ÷ spend

Which to focus on

Judge campaigns on CPA or ROAS, because they tie spend to results. CPM, CTR and CPC help explain why results are good or bad: weak creative usually shows up as a low CTR; a weak landing page as a low conversion rate.

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