Introduction
Advertising campaigns can be costly, and it’s crucial to know how much bang you’re getting for your buck. That’s where advertising metrics come in. Metrics provide insights into your advertising campaign’s performance and help you determine which ads are working and which ones aren’t.
In this article, we’ll break down 30 advertising metrics every marketer should know, including their definitions and formulas. Keep in mind that these are just examples, and you can always customize the formulas to fit your specific advertising goals and objectives.
Whether you’re a seasoned marketer or just starting, understanding these advertising metrics will help you optimize your campaigns, reach your target audience, and achieve your advertising goals.
Read Also: Top Facebook Ads Tools for Advertising
30 Advertising Metrics
- Cost per Lead (CPL): Total cost of ad campaign divided by the number of leads generated. Formula: CPL = Total Cost / Number of Leads
- Conversion Rate (CR): The percentage of people who completed a desired action after clicking on the ad. Formula: CR = (Number of Conversions / Number of Clicks) x 100%
- Return on Ad Spend (ROAS): The amount of revenue generated for every dollar spent on ads. Formula: ROAS = Revenue / Ad Spend
- Cost per Purchase (CPP): Total cost of ad campaign divided by the number of purchases made. Formula: CPP = Total Cost / Number of Purchases
- Click-Through Rate (CTR): The percentage of people who clicked on the ad after seeing it. Formula: CTR = (Number of Clicks / Number of Impressions) x 100%
- Cost per Impression (CPI): The cost of each ad impression. Formula: CPI = Total Cost / Number of Impressions
- Engagement Rate (ER): The percentage of people who engaged with the ad (liked, commented, shared, etc.) after seeing it. Formula: ER = (Number of Engagements / Number of Impressions) x 100%
- Cost per Engagement (CPE): The cost of each ad engagement (like, comment, share, etc.). Formula: CPE = Total Cost / Number of Engagements
- Cost per Click (CPC): The cost of each ad click. Formula: CPC = Total Cost / Number of Clicks
- Ad Frequency (AF): The average number of times an ad was shown to each person in the target audience. Formula: AF = Number of Impressions / Reach
- Cost per App Install (CPA): Total cost of ad campaign divided by the number of app installs. Formula: CPA = Total Cost / Number of App Installs
- App Install Rate (AIR): The percentage of people who installed the app after clicking on the ad. Formula: AIR = (Number of App Installs / Number of Clicks) x 100%
- Cost per Video View (CPV): The cost of each video view. Formula: CPV = Total Cost / Number of Video Views
- Video View Rate (VVR): The percentage of people who viewed the video after seeing it. Formula: VVR = (Number of Video Views / Number of Impressions) x 100%
- Website Conversion Value (WCV): The value generated from website conversions (e.g. sales, leads, etc.). Formula: WCV = Total Conversion Value / Number of Conversions
- Cost per Website Conversion (CPWC): Total cost of ad campaign divided by the number of website conversions. Formula: CPWC = Total Cost / Number of Website Conversions
- Lead Conversion Rate (LCR): The percentage of leads that converted into customers. Formula: LCR = (Number of Conversions / Number of Leads) x 100%
- Revenue per Click (RPC): The amount of revenue generated for each click on the ad. Formula: RPC = Total Revenue / Number of Clicks
- Return on Investment (ROI): The return on investment generated from the ad campaign. Formula: ROI = (Total Revenue – Ad Spend) / Ad Spend x 100%
- Cost per Landing Page View (CPLPV): The cost of each landing page view. Formula: CPLPV = Total Cost / Number of Landing Page Views
- Social Reach (SR): The number of people who saw the ad through social actions, such as likes, comments, and shares. Formula: SR = Number of People Reached Through Social Actions
- Cost per Social Reach (CPSR): Total cost of ad campaign divided by the number of people reached through social actions. Formula: CPSR = Total Cost / Number of People Reached Through Social Actions
- Unique Click-Through Rate (uCTR): The percentage of unique people who clicked on the ad after seeing it. Formula: uCTR = (Number of Unique Clicks / Number of Impressions) x 100%
- Cost per Unique Click (CPUC): The cost of each unique click on the ad. Formula: CPUC = Total Cost / Number of Unique Clicks
- Engagement per Impression (EPI): The average number of engagements (likes, comments, shares, etc.) per impression. Formula: EPI = Number of Engagements / Number of Impressions
- Cost per Engagement per Impression (CPEI): The cost of each engagement per impression. Formula: CPEI = Total Cost / Number of Engagements per Impression
- Purchase Conversion Value (PCV): The value generated from purchase conversions. Formula: PCV = Total Purchase Conversion Value / Number of Purchase Conversions
- Cost per Purchase Conversion (CPCV): Total cost of ad campaign divided by the number of purchase conversions. Formula: CPCV = Total Cost / Number of Purchase Conversions
- Cost per 1000 People Reached (CPM): The cost of reaching 1000 people with the ad. Formula: CPM = Total Cost / Number of Impressions x 1000
- Lifetime Value (LTV): The total value generated from a customer over their lifetime. Formula: LTV = Total Revenue / Number of Customers
Remember, these are just examples and you can customize the formulas to fit your specific advertising goals and objectives.
Final Words
In conclusion, understanding the different metrics used in advertising can help you make informed decisions and optimize your ad campaigns for better results. By tracking these metrics and analyzing their performance, you can identify areas of improvement and adjust your strategies accordingly. It’s important to remember that these are just examples of metrics, and you should customize them to suit your specific advertising goals and objectives. With a clear understanding of these metrics, you can make data-driven decisions that lead to more effective and efficient ad campaigns.
