Digital Marketing Metrics Flashcards
What are Key Performance indicators (KPI)?
Is a measurable value that marketers use to evaluate success across all marketing channels
What does cost per click (CPC) mean?
Is a paid advertising term where an advertiser pays a cost to a publisher for every click on an ad. CPC is also called pay per click (PPC)
What does Click Through Rate (CTR) mean?
A ratio showing how often people who see your ad or free product listing end up clicking it. It can be used to gauge how well your keywords and ads, and free listings, are performing
Clicks ÷ Impressions = CTR
What does Conversion Rate (CVR) mean?
Measures the number of users who completed a desired action as a percentage of the total number of users that visited your site
What does cost per acquisition (CPA) mean?
Is a metric that indicates how much it costs to get a single customer down your sales funnel, from the first touch point to conversion
Cost ÷ Conversions = CPA
What does return on investment (ROI) mean?
Measures the money a marketer spends on marketing campaigns against the revenue those campaigns generate
(Revenue - Cost) ÷ Cost = ROI
What does impression mean?
In practice, it occurs any time a user opens an app or website and an advertisement is visible. It is not to be confused with an engagement
What does clicks mean in digital marketing?
The number of times viewers of an ad unit click on it to view the full offer
What does revenue mean in digital marketing?
It means the total revenue generated from advertising
What does cost mean in digital marketing?
It is the total cost of advertising online
What does sales/conversions mean in digital marketing?
It usually refers to the total number of sales but can also mean another desired action like email sign-ups, application submissions, etc
