Advertising metrics can be confusing. Understanding each of the common advertising metrics will help you measure and improve your campaigns. We are going to review the top five reporting metrics that are crucial for improving your campaigns and presenting to your stakeholders:
Impressions: An impression is when someone sees your advertisement. Maximize your impressions for the most visibility.
Click Through Rate (CTR): Click through rate is the percentage of people who see your ads (impressions) who click through to your website or landing page. Maximize your CTR for an efficient campaign
Cost Per Click (CPC): In click-based campaigns the cost per click is the average price you pay to get someone to click on your advertisement. Minimize your cost per click for an efficient campaign.
Conversion Rate: Conversion rate is the percentage of people who click on your ad who then continue to convert (sign up, schedule a demo, purchase, etc.) Maximize your conversion rate for an efficient campaign.
Cost Per Conversion: Cost per conversion is the average price you pay for someone who clicks on your ad to convert (sign up, schedule a demo, purchase, etc.) Minimize your cost per conversion for an efficient campaign.
Conversion Value: Conversion value is the average revenue generated from a conversion. Maximize your conversion value for an efficient campaign.
However, you should keep in mind that the right metrics to track are completely dependent upon your goals.