Metric |
Explanation |
Actions |
An action is any activity a user takes when interacting with a website, application or product. This could include email signups, page views, downloads, video plays, purchases or any other activity. |
Ad Spend |
Amount of money spent on advertisement, a.k.a. "Cost". |
Attribution |
Attribution links an established set of user actions to a desired result and then assigns a value to each of those outcomes. Marketers use attribution models and reporting to understand how their marketing activities are performing relative to business results. For example, if my goal was to learn if the blog posts I’m publishing are delivering qualified leads that convert, I could set up an attribution report to monitor how many people read my blog posts, sign up for a free trial and then convert to a paying customer. |
Authentic Impression Rate |
To be counted as Authentic, an impression must satisfy all of the following criteria: - Fully viewed - By a human - In a brand-safe environment - Within the correct geography This metric is found only on Display and Video 360 (Google). |
Average Order Value (AOV) |
Average Order Value. Revenue divided by Transaction/Sales/Orders/Purchases - expresses how much each buyer spends on average. |
Average Position |
Google does not show ads for every query. Certain queries show just one ad, some show up to 4 and some show none. Some queries show 2 results above organic results, some only show ads below organic results. Average position is one the most important KPIs for Google Ads campaigns and expresses at which position (1-6) an ad on Google Ads appeared on average. |
Bounce Rate |
Bounce rate is the percentage of people that came to a landing page and left without browsing further or clicking elsewhere on the website. |
Click |
Select (an option on an electronic interface) by pressing a button or touching a screen. |
Click Share |
Click Share is defined as the number of clicks a product group (or product ID) received, divided by the estimated maximum number of clicks it could have received in a given time frame. Found only on Google Ads. |
Click-Though Rate (CTR) |
The ratio between the clicks and the impressions (an indicator of the relevancy/efficacy of the ad). CTR = Clicks / Impressions |
Conversion |
A conversion occurs when a visitor to your website completes a desired goal, such as filling out a form or making a purchase. |
Conversion Rate (CVR) |
Conversion rate is calculated when users take a particular, defined action that you want them to take. The most common measurement for conversion is the number of unique website visitors that convert to paying customers. However, conversions could be the number of people who sign up for a free trial, make a purchase, download a white paper, click on an ad, etc. |
Cost |
Investment or spending for the specific channel/campaign. |
Cost Per Acquisition (CPA) |
Cost per Acquisition - This is a metric used to determine how much it costs to acquire one customer. You can calculate this by dividing the total cost of your campaign by the number of conversions. This metric is important because it actually shows you how much you are spending per conversion. If this cost is too high, you should consider reworking your marketing campaign. CPA = Costs / Conversions |
Cost Per Click (CPC) |
Cost per Click. Costs divided by clicks. A common way to pay for search engine and other types of online advertising, CPC means you pay a pre-determined amount each time someone clicks on your advertisement to visit your site. You usually set a top amount you are willing to pay per click for each search term, and the amount you pay will be equal or less to that amount, depending on the particular search engine and your competitors’ bids. Also referred to as Pay Per Click (PPC) or Paid Search Marketing. |
Cost Per Lead (CPL) |
Cost per Lead. Costs divided by Conversions. |
Cost Per Impression (CPI) |
Cost Per Impression - measures how many times your ad appears on a site whether or not the users actually sees or interacts with it. This is similar to the marketing term “reach” but reach measures how many people see your content and impressions measure how many times your ad or content was displayed. Impressions build brand recognition while reach will help you build your brand. CPI = Costs/Impressions |
Cost Per Mille (CPM) |
Cost per Mille. Costs divided by (Impressions divided by 1000). A common internet marketing cost structure, especially for banner advertising. You agree to pay a set cost for every 1,000 Impressions your ad receives. Search engine marketing may involve CPM costs for Contextual Advertising. It should really be called Cost per 1,000 Impressions. |
Cost Per Order (CPO) |
Cost per Order. Costs divided by Conversions. Also see CPA. |
Cost Per View (CPV) |
Cost per View. Costs divided by Video Views. CPV is an spend method, similar to CPC or CPM, but only applicable for video content. With CPV bidding, you'll pay for video views or interactions (e.g. someone clicking on a video banner ad). A view is counted when someone watches 30 seconds of your video ad (or the duration if it's shorter than 30 seconds) or interacts with the ad, whichever comes first (Youtube definition). Facebook might count them differently e.g. Cost per 3-second video view. CPV = Costs / Viewed Videos |
Customer Acquisition Cost (CAC) |
Customer Acquisition Cost - is the total sales and marketing cost required to earn a new customer over a specific time period. CAC = Total Costs(Marketing + Sales) / Nr. of New Customers |
Customer Lifetime Value (CLV) |
CLV is defined as the overall financial value of a customer relationship, based on the present and future net profit of the specific customer association. Ultimately, CLV can help you make critical business decisions about future sales, marketing, and other business development plans. In order to calculate the CLV for each customer, you will need three pieces of data: the average order value, the customer’s purchase frequency, and the customer value. |
Customer Retention Rate (CRR) |
Customer Retention Rate is the ability of a company to retain its customers over a period of time. Customer retention a percentage that measures how many customers a company keeps at the end of a set time period. |
Engagement Rate |
Engagement rate is a term used to measure how “engaged” a visitor is with your brand. This can be calculated in multiple ways. For example, a visitor who came to your website and clicked on multiple pages stayed for an extended period and shared one of your social media posts would have a higher engagement rate than a visitor who only came to your website once. |
Events |
Events and the actions mentioned above are relatively synonymous and you will hear the terms interchanged frequently. What you might not hear as often is the term Custom Events. Custom Events include any event (or action) that you would like to track. For example, a mobile gaming company might want to track how many of their users make it past the first level. So, the company would create a Custom Event that tracks level completion. |
Frequency |
Impressions divided by Reach. How often did I reach one person on average? |
Gross Ratings Point (GRP) |
Gross ratings point. Metric used primarily in TV advertising. Used by media planners and buyers to determine how many people within an intended audience might have seen their ads. GRPs can be calculated for total reach as well as exposure by different demographics, times of day etc. The formula is: (size of target audience) x (times ad was played). Thus, if you get advertise to 30% of the target market and give them 4 exposures, you would have 120 GRP. The calculation uses data based on TV ratings (Nielsen, GfK etc.). But it is really well explained here: https://digiday.com/marketing/what-is-a-grp-gross-ratings-point/ |
Impression |
The number of times someone views a page displaying your ad. Note that this is not the same as actually seeing your ad, so it is less of a meaningful KPI than e.g. clicks or conversions. |
Impression Share |
Impression share is the number of impressions you've received divided by the estimated number of impressions you were eligible to receive. Found only on Google Ads. |
Landing Page |
The page intended to identify the beginning of the user experience resulting from a defined marketing effort. In other words, a landing page is a standalone web page that has been designed for a single objective. |
Lead |
A lead is a person who shows interest in a brand's products or services, which makes the person a potential customer. |
Link Clicks |
Link clicks are the number of clicks on links to select destinations or experiences, on or off Facebook-owned properties. E.g. Clicks on an URL link in the text description of an ad |
Marketing Qualified Lead (MQL) |
Marketing Qualified Lead is a lead who has indicated interest in what a brand has to offer based on marketing efforts or is otherwise more likely to become a customer than other leads. For example, the visitor may have filled in a web form, have downloaded content, have signed up for a newsletter or have virtually placed items in a shopping cart. |
Mentions |
Mentions are an informative metric to help online businesses gauge how the perception and visibility of their brand. Mentions encompass PR, social media, SEO, and overall brand awareness & popularity. |
Orders |
Amount of orders for a certain product |
Pageviews |
The instance of an Internet user visiting a particular page on a site. A pageview is recorded whenever a full page of your website is viewed or refreshed. |
Reach |
Marketing reach is the number of recipients of a particular marketing message/campaign. Depending on the intention of the message, this could be measured in a number of ways; people, households, impressions, maybe even number of cars (if it's a billboard advert on a motorway). It is the total number of unique people who have seen your content – a Facebook post, a shared image on Instagram or a paid ad. Note that it is not the same as an impression, which is the number of times the ad was displayed. In this sense, the reach is the count of unique impressions received over a certain period of time. Interactions with the ad are not relevant when evaluating reach. |
Reactions |
Reactions are simply another way to engage with customers. Reactions are more descriptive than a simple “like” and allow marketers to see how customers “feel” about posts. |
Return On Ad Spend (ROAS) |
Return On Ad Spend - Ratio between net profit and costs of ad spend. Similar to ROI ROAS = Net Profit / Ad Spend |
Revenue |
Money generated by the sale of products, a calculation of quantity * price. Usually revenue is one of the most important metrics for our e-commerce clients and is used to calculate profit and ROAS. |
ROI |
Return On Investment - Ratio between net profit and costs of investment ROI = Net Profit / Costs |
Sales Qualified Leads (SQL) |
A Sales Qualified Lead is a prospective customer that has progressed past the engagement stage, has been thoroughly analyzed by both marketing and sales, and has been deemed ready for the next stage in the sales process — a direct sales push. |
Sessions |
The term session (often called visits) refers to the activity a visitor takes on your application or website throughout a given time. The actual amount of time that is attributed to a session varies depending on your analytics solution. For example, a two-hour session could include the projects, purchases, and reports that a user engaged with while on your application. After a period of inactivity, the session ends and a new session will begin as soon as the user comes back to your site or application. |
Spend |
Investment or spending for the specific channel/campaign. Usually Facebook calls the costs, spend. |
Stock Keeping Unit (SKU) |
Stock Keeping Unit - most commonly used in E-Commerce. It is normally a unique code that identify's a specific item for stock control. If that item runs out of stock, the CMS can be updated so that all items pertaining to that code can be changed to 'out of stock'. |
Video View |
Indicates how often a video has been exposed to a viewer. Different platforms might measure a view differently, depending on how much of the video was watched. |
Viewed Cost Per Mille (vCPM) |
Viewed Cost per Mille - refers to the amount an advertiser pays when more than 50% of their creatives are tracked as viewed by 1,000 people for longer than 1 second for display ads and 2 seconds for video ads. vCPM = 1000 x Cost / Viewable impressions vCPM = CPM x Total Impressions / Viewable impressions vCPM = CPM / viewable impressions % |
View-Through Rate (VTR) |
View Through Rate is the ratio showing the number of paid views of a video ad to the number of impressions. VTR = Nr of paid views / Impressions |
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