Performance marketing is all about driving measurable results. To ensure you’re on the right track, it's essential to keep an eye on key performance indicators (KPIs). Here’s your ultimate cheat sheet to navigate through the critical KPIs for performance marketing.
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Engagement Metrics
1. Impressions
Formula: Total count of ad displays
Description: Measures how often ads are viewed.
2. Clicks
Formula: Total count of ad clicks
Description: Tracks the number of interactions with ads.
3. Click-Through Rate (CTR)
Formula: (Clicks / Impressions) × 100
Description: Percentage of impressions that result in clicks.
4. Cost Per Thousand Impressions (CPM)
Formula: (Total Spent / Impressions) × 1000
Description: Cost for every thousand impressions.
5. Engagement Rate
Formula: (Total Engagements / Impressions) × 100
Description: Measures how users interact with ads.
6. Video Completion Rate
Formula: (Video Completions / Video Views) × 100
Description: Percentage of video views that result in full views.
7. Frequency
Formula: Impressions / Unique Users
Description: Measures how often users see an ad.
8. Page Engagement
Formula: Total Page Interactions / ImpressionsDescription: Measures interaction with a landing page.
Conversion Metrics
1. Conversion Rate
Formula: (Conversions / Clicks) × 100
Description: Percentage of clicks that result in conversions.
2. Cost Per Acquisition (CPA)
Formula: Total Spent / Conversions
Description: Average cost to acquire one customer.
3. Return on Ad Spend (ROAS)
Formula: Revenue from Ad Spend / Total Spent
Description: Revenue generated per dollar of ad spend.
4. Attribution per Touchpoint
Description: Tracks the contribution of each touchpoint to conversions.
5. Lead Conversion Rate
Formula: (Total Leads / Total Conversions) × 100
Description: Measures how many leads turn into customers.
6. Sales Conversion Rate
Formula: (Number of Sales / Total Leads) × 100
Description: Percentage of leads that result in sales.
7. New Customer Rate
Formula: (Number of New Customers / Number of Leads) × 100
Description: Measures the effectiveness of converting leads into actual customers.
8. Form Submission Rate
Formula: (Number of Forms Submitted / Impressions) × 100
Description: Measures how often visitors submit a form.
Cost Metrics
1. Cost per Click (CPC)
Formula: Total Spent / Clicks
Description: Cost for each click on an ad.
2. Cost per Lead (CPL)
Formula: Total Spent / Leads
Description: Average cost to acquire a lead.
3. Cost per Engagement (CPE)
Formula: Total Spent / Total Engagements
Description: Cost for each user interaction.
4. Cost Efficiency
Formula: (Budget Used / Target Budget) × 100
Description: Efficiency of budget usage against planned budget.
5. Cost per View (CPV)
Formula: Total Spent / Total Video Views
Description: Cost for each video view.
6. Cost per Thousand (CPM)
Formula: (Total Spent / Impressions) × 1000
Description: Measures cost for every ad impression.
7. Cost per Impression (CPI)
Formula: Total Revenue / Total Impressions
Description: Measures revenue generated for every ad impression.
Revenue Metrics
1. Customer Lifetime Value (CLV)
Formula: (Average Revenue per User × Customer Lifespan)
Description: Estimate revenue from a customer over their lifetime.
2. Average Order Value (AOV)
Formula: Total Revenue / Number of Orders
Description: Average amount spent per order.
3. Cost per Engagement (CPE)
Formula: Total Revenue / Total Engagements
Description: Revenue generated per site visitor.
4. Revenue Growth Rate
Formula: (Current Revenue / Previous Revenue) × 100
Description: Measures revenue growth over time.
5. Revenue per Click (RPC)
Formula: Total Revenue / Total Clicks
Description : Measures the amount of revenue generated per click.
6. Return on Marketing Investment (ROMI)
Formula: (Revenue from Marketing / Total Marketing Cost) × 100
Description: Revenue generated per dollar spent on marketing.
7. Revenue per Impression (RPI)
Formula: Total Revenue / Total Impressions
Description: Measures revenue generated per ad impression.
8. Revenue per Lead (RPL)
Formula: Total Revenue / Total Leads
Description: Measures revenue generated per lead acquired.
About Echo Education
Echo Education is a leading digital marketing institute based in Nagpur. We offer a range of courses designed to equip students with the skills needed to thrive in the digital marketing landscape. Our programs include:
Digital Marketing Courses: We offer both offline and online options, complete with a 2-day free demo class to help you get started.
Freelancing Digital Marketing Course: This 60-day program includes 100% placement assistance, international certification, LMS access, and a friendly learning culture.
Why Choose Echo Education?
Practical Training: Get hands-on experience with real-world projects.
Expert Instructors: Learn from professionals with extensive industry experience.
Career Support: Benefit from our comprehensive placement assistance and career counseling.
Flexible Learning Options: Choose from offline and online courses to suit your schedule.
For more information, visit our website at Echo Education or contact us at 8390709709. Join us at Plot no 278, Mata Mandir Rd, Dharampeth, Nagpur, Maharashtra 440010, and take the first step towards a successful career in digital marketing.
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