The 7 Essential Paid Advertising Metrics That (Actually) Matter

As a marketing agency, one of the most common questions we hear from e-commerce store owners is "how do we know our paid advertising campaigns are really working?" 

The short answer: hitting various benchmarks in your ROAS, CPA, and LTV.

But these are only the surface level key performance indicators (KPIs).

Knowing which metrics truly matter (and which you can ignore) will help you make informed decisions about where to invest your limited time and resources

This listicle outlines the 7 most important paid advertising metrics and math behind each one. 

Let’s dive in…

Essential Metric #1: Conversion Rate (CR)

Essential Metric #2: Lifetime Value (LTV)

Essential Metric #3: Marketing Efficiency Ratio (MER)

Essential Metric #4: Return on Ad Spend (ROAS)

Essential Metric #5: Click-Through Rate (CTR)

Essential Metric #6: Bounce Rate (BR)

Essential Metric #7: Percentage of Sales from Paid Advertising Channel

Wrapping Up the Key Takeaways for Paid Advertising Metrics

By monitoring these KPIs, your business can get a better understanding of which campaigns are working best for your store and which need to be adjusted or eliminated. Additionally, tracking the effectiveness of campaigns over time can help you identify patterns in your customer behavior and make more informed decisions about where to focus your efforts in the future.

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