September 29, 2020

Understanding The Basics of Marketing Metrics

How do marketers and advertisers know when they’re meeting their strategic business goals? Marketing Metrics are a great tool for getting to know your audience and how they interact with your marketing strategies.

Advertising metrics help marketers learn how much they’re moving the needle against each of their goals. Here are 7 of the most common Marketing Metrics to get you started:

Click-Through Conversion (CTC)

CTC is when a visitor is shown your ad, they click on it, and then convert to a customer or consumer of what you are advertising. The calculation as a percentage is the number of clicks that have converted divided by the total number of clicks your ad received.

Click-Through Rate (CTR)

CTR is a metric that measures the number of clicks you ad(s) receive per number of impressions. The calculation is  the number of clicks divided by the number of impressions.

Cost Per Click (CPC)

CPC is calculated by taking the total amount of money spent divided by the number of clicks received for a campaign.

Cost-Per-Thousand Impressions (CPM)

Also known as ‘Cost-Per-Mile’, CPM is the price of 1,000 advertising impressions on one webpage. The way to calculate CPM is to take the cost to the advertiser divided by the number of impressions, and then divide that number by 1000.

Return On Investment (ROI)

ROI is the ratio between net profit and cost. ROI is used to evaluate the overall effectiveness of your advertising program. The calculation is net profit divided by cost.

Return Of Ad Spend (ROAS)

ROAS is a measurement of how many dollars you will receive for every dollar you spend on an advertising campaign. ROAS will tell you if an advertising campaign is working or not. The calculation is revenue divided by cost.

View-Through Conversion (VTC)

VTC is when a visitor is shown your ad and they do not click on it, but later return to your site and convert. The calculation as a percentage is the number of clicks divided by total number of impressions.

Cost-Per Acquisition (CPA)

CPA refers to the total cost of acquiring a new customer once they have made an initial purchase.

When producing marketing content, ads could be produced again and again, but without Marketing Metrics, your campaign could be a flop and you would be none the wiser. Paying attention to the metrics of your company could be the difference between one click and one thousand clicks! So focus on those ROI’s and CMP’s and tweak your campaign accordingly!

For more Marketing Metrics basics, check out our ebook, 8 Essential KPI’s for a Successful Campaign!

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A.I. Lab

AI Lab Director - Perfect Audience: Serving as both AI Lab Director of Perfect Audience and CMO of Robauto, Jalali is a proven thought leader and engineer in the field of innovation and new technology. He is credited with creating breakthrough technology products, companies, and lasting IP in e-commerce, A/B testing, social media, and artificial intelligence.
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