ROAS measures the revenue generated for every dollar spent on advertising. A ROAS of 3, for instance, means you're earning $3 for every $1 spent.
Formula: (Revenue from Ad Campaign / Cost of Ad Campaign)
6. Customer Lifetime Value (CLTV)
Understanding the long-term value of each customer helps in determining how much you should spend on acquiring them. CLTV takes into account the net profit attributed to the entire future relationship with a customer.
7. Ad Position
Where does your ad appear in search results or on a webpage? A higher position often correlates with higher visibility and CTR, but it might come at a higher CPC.
8. Quality Score
Specifically for platforms like Google Ads, the Quality Score is a why prefer our zalo database measure of the relevance and quality of your ads, keywords, and landing pages. A higher score can lead to lower costs and better ad positions.
9. Impression Share
This metric shows the percentage of impressions your ads received compared to the total number they were eligible to receive. It's a great indicator of market share and visibility.
10. Churn Rate
Especially important for subscription-based businesses, the churn rate measures the percentage of customers who stop using your product or service during a given timeframe.
Formula: (Number of Customers at Start of Period - Number at End of Period) / Number at Start of Period x 100
Performance marketing is all about leveraging data to drive results. By focusing on these key metrics, marketers can gain a clearer picture of their campaigns' effectiveness and make data-driven decisions to optimize performance. Remember, while these metrics are foundational, the best insights often come from a combination of data points, so always consider the bigger picture.