Performance Metrics Explained
Understanding Key Metrics
Click-Through Rate (CTR)
Formula: (Clicks ÷ Impressions) × 100
Good: 1-2% | Great: 3%+
Conversion Rate (CVR)
Formula: (Conversions ÷ Clicks) × 100
Good: 2-3% | Great: 4%+
Return on Ad Spend (ROAS)
Formula: Revenue ÷ Ad Spend
Profitable: 2.0+ (for most businesses)
Cost Per Acquisition (CPA)
Formula: Ad Spend ÷ Conversions
Target: Lower than your average order value
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