Performance Measurement (CPC, CTR, ROI)

Performance Measurement in Digital Marketing

Key Metrics

In digital marketing, performance measurement is crucial for evaluating the effectiveness of campaigns. Three key metrics often used are:

• CPC (Cost Per Click): This metric measures the amount spent for each click on an advertisement. It helps in assessing how cost-effective an ad campaign is in driving traffic.

• CTR (Click-Through Rate): This is the ratio of users who click on an ad to the number of total users who view the ad. A higher CTR indicates that the ad is effective in attracting interest.

• ROI (Return on Investment): This metric evaluates the profitability of an investment. It is calculated by comparing the revenue generated from a campaign to the cost of the campaign.