Marketing metrics are useful only when they are connected to the business model. A high CTR may look good, but it does not compensate for a lack of sales.
CTR
Click-through rate shows the share of impressions that result in clicks and helps assess how an audience responds to an ad or link.
CPC
Cost per click shows the average cost of a visit. A low CPC does not guarantee high-quality traffic.
Conversion rate
The percentage of users who complete a target action. Changes in conversion rate can significantly affect advertising economics even when click costs remain unchanged.
CPA
Cost per action shows the cost of a selected conversion. It is important to define in advance which action genuinely has value.
ROAS
Return on ad spend compares revenue associated with advertising with advertising spend. It does not automatically account for cost of goods or all operating expenses.
CAC
Customer acquisition cost estimates the cost of acquiring a new customer and may include more expenses than advertising CPA alone.
LTV
Lifetime value helps assess a customer\u0027s value across the relationship with the business rather than only the first purchase.
Which KPIs should you choose?
E-commerce, lead generation and B2B require different sets of metrics. A good measurement system starts with the business result and works downward to diagnostic metrics.
The main analytics principle
Do not optimise what is easy to measure instead of what matters to the business. Clicks and impressions explain the process; customers, revenue and profitability explain the result.