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Explanation of key performance indicators

CTR, CPC, CPA, ROI... It's confusing! Here are the main performance indicators you need to know.

Explanation of the advertising jargon:

Impressions is the number of times a user has seen your ad.

Clicks is the number of times a user has clicked on your ad.

CTR (click-through rate) is the number of clicks on an ad, divided by the number of impressions, expressed as a percentage.

The conversion rate corresponds to the percentage of achievement of an objective: sale, form filled, call in store, the objectives can vary! ( number of sales / number of clicks )

The CPC (cost per click) is the amount you pay for each click that leads directly to your internal site. Not to be confused with the cost per conversion.

The sales corresponding to the number of sales made. Be careful to check the parameters of the returns according to the different platforms.

The turnover corresponding to the amount of sales made.

The cost per conversion (CPA) allows you to know the cost that you pay to generate a conversion (a sale for example). It is calculated by dividing the expenses incurred by the number of conversions. For example: if you get 4 sales by having spent 100€, your cost per conversion will be 25€ (100€ divided by 4 sales)

The ROI (Return on Investment) is the return on investment of your campaigns. Not to be confused with the ROAS, it is similar to the return on investment but without the expenses generated.

Note that indicators such as sales, turnover and related calculated indicators such as cost per conversion, conversion rate and ROI depend on the tracking set up on the corresponding platforms (eg: Google Ads conversion tracking, Pixel Meta, Google Analytics etc.). Depending on the platforms, the settings made and the methods of accounting for it, the figures may differ.

Updated on: 08/02/2024

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