This can be expressed as a percentage, or a dollar amount. Return on Ad Spend (ROAS): ROAS is a measurement of how much revenue is returned per dollar spent. Spend / Conversions = Cost-Per-Conversion Conversions / Clicks = Conversion RateĬost-per-conversion: Cost-per-conversion - often referred to as cost-per-acquisition (CPA) - is the average amount of advertising spend invested per resulting conversion action. Spend / Clicks = CPCĬonversions: Conversions - which could be sales, leads, downloads, email opt-ins - is the total volume of conversion actions attributed to the ad spend.Ĭonversion Rate: Conversion rate is the rate at which a click turns into a conversion action such as a lead form submission, ebook download, email opt-in, sale, etc. The click metric is also commonly associated with the number of website visitors.Ĭost-per-click (CPC): CPC is the average amount paid in advertising spend per click on the ad. Clicks / Impressions = CTRĬlicks: Clicks are the amount of people who clicked on, or took an action on an ad. If 100 ads are shown and 1 person clicks, that is a 1% CTR. ![]() ((Spend / Impressions)*1000) = CPMĬlick-through Rate (CTR): CTR is the rate at which impressions result in a viewer of the ad clicking on it. Essentially how many ads were served by the advertising spend.Ĭost-per-thousand Impressions (CPM): CPM is how much it costs in net advertising spend to purchase 1,000 impressions. Impressions: Impressions are the amount of times ads appeared, or were shown, in the given channel. ![]() This does not include management fees, creative or anything else - purely the advertising hard cost. Margin is the gross revenue percentage the business keeps.Spend: Spend is the net advertising cost. Margin: Margin is the difference in price between what a business pays for a product (cost) and what a buyer pays for that same product. Markup is the net revenue amount the business will keep. Markup is based on the cost of goods paid by the business. Markup: Markup is the difference in price between what a business pays for a product (cost) and what a buyer pays for that same product. ![]() ![]() Spend: Spend is the net advertising cost.
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