Marketing Metrics

Comprehensive guide to key performance indicators, measurement metrics, and analytics terms used in digital marketing. Learn how to track, measure, and optimize your advertising campaigns with these essential marketing metrics and KPIs.

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Return on Ad Spend

A performance metric measuring revenue generated relative to advertising spend.

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Click-Through Rate

The percentage of ad impressions that result in a click.

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Cost Per Action

The average cost to drive a specific user action or micro-conversion.

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Cost Per Acquisition

The average cost to acquire a customer or generate a full conversion.

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Conversion Rate

The percentage of users who complete a desired conversion action.

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Ad Frequency

The average number of times a unique user is exposed to an ad.

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Cost Per Mille

The cost to deliver 1,000 ad impressions to target audience.

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Cost Per Click

The average cost paid for each click on an advertisement.

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Pay-Per-Click

An advertising model where advertisers pay only when users click their ads.

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Reach

The number of unique users exposed to an advertisement.

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Engagement Rate

The percentage of users who interact with content through measurable actions relative to total reach or impressions.

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Add-to-Cart Rate

The percentage of product page views or interactions that result in an add-to-cart event, typically on e-commerce sites.

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Initiate Checkout Rate

The percentage of shopping sessions that begin the checkout process, with definitions that can vary by context.

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Video Completion Rate

The percentage of video ad impressions where users watch to completion (100%).

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Cost Per View

The average cost paid for each qualified video view based on platform-specific view criteria.

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View Through Rate

Percentage of users who convert within the attribution window after viewing but not clicking an ad.

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Cost Per Completed View

Average cost paid for each full video view completion (100% viewed).

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Customer Lifetime Value

The predicted total revenue a business expects from a customer throughout their relationship.

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Bounce Rate

Percentage of single-page sessions where users exit without meaningful interaction.

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Session Duration

The length of time a user spends actively engaged during a single website visit.

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Average Order Value

A key e-commerce metric measuring the average monetary value of each completed transaction.

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Customer Acquisition Cost

The total business cost required to convert a prospect into a paying customer.

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New Customer Acquisition Cost

Cost specifically to acquire first-time customers.

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Marketing Efficiency Ratio

Total revenue divided by total marketing spend, measuring overall marketing effectiveness.

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Attributed Marketing Efficiency Ratio

Revenue attributed to paid marketing divided by total marketing spend.

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New Marketing Efficiency Ratio

Revenue from new customers divided by marketing spend, measuring acquisition efficiency.

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Thumbstop Rate

Percentage of users who pause scrolling to view content for a meaningful duration.

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Thumbstop Click Rate

Percentage of users who click after meaningfully pausing to view content.

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ThruPlay Rate

Percentage of video ad impressions that result in complete views or 15-second watches.

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View Rate

Percentage of video ad impressions that result in views meeting platform-specific duration thresholds.

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Cost Per ThruPlay

Average cost of achieving a ThruPlay (complete view or 15-second watch) for video ads.

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First-Time Impression Ratio

The percentage of ad impressions that are shown to users who have never seen the ad before.

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Impressions

The total number of times an ad is displayed to users.

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Share of Voice

Percentage of market presence across advertising, social media, and PR relative to total market or competitors.

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Churn Rate

Percentage of customers who stop using a product or service during a given time period.

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Customer Retention Rate

Percentage of existing customers who remain active with a business over a given time period.

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Return on Investment

Net profit or loss generated relative to total investment cost, expressed as a percentage.

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Moving Average

Rolling calculation that smooths data fluctuations over time.

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Exponential Moving Average

Weighted moving average giving more importance to recent data.

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Statistical Significance

Measure of whether results are likely due to chance or a real difference.

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Confidence Interval

Range of values likely to contain the true population parameter.

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Margin of Error

Maximum expected difference between sample estimate and true value. A measure of the precision of a sample estimate.

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Sample Size

The number of observations in a sample, critical for the accuracy and reliability of statistical estimates.

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Variance

The average of the squared differences from the mean.

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False Positive

An error in data analysis where a test incorrectly indicates the presence of a condition or effect that is not actually present.

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Control Group

A segment of users or data points that receive no treatment or intervention, serving as a baseline for comparison in experiments.

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Overfitting

A modeling error where an algorithm learns the training data too precisely, capturing noise rather than underlying patterns, resulting in poor performance on new data.

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