Key Metrics

Understanding what each metric means.

Performance Metrics

CTR (Click-Through Rate) Percentage of impressions that resulted in clicks. Formula: (Clicks / Impressions) × 100

CPA (Cost Per Acquisition) Average cost to acquire one conversion. Formula: Total Spend / Conversions

ROAS (Return on Ad Spend) Revenue generated per dollar spent. Formula: Revenue / Ad Spend

Conversion Rate Percentage of clicks that converted. Formula: (Conversions / Clicks) × 100

Benchmarks

Industry averages vary, but general guidelines: - CTR: 2-5% (Search), 0.5-1% (Display) - CPA: Depends on industry/product value - ROAS: 4x+ is typically profitable