Marketing reports are full of acronyms. Once you understand how the core metrics connect, they become much easier to read, and much easier to question. This guide explains the essentials with one worked example.
The marketing funnel in numbers
Most reports follow a journey: people see an ad, some click, and some of those convert (buy, sign up, request a quote). Each step has a metric.
| Metric | Meaning | Formula |
|---|---|---|
| Impressions | Times an ad was shown | – |
| Clicks | Times it was clicked | – |
| CTR | Click-through rate | Clicks ÷ Impressions |
| Conversion rate | Share of clicks that convert | Conversions ÷ Clicks |
| CPC | Cost per click | Spend ÷ Clicks |
| CPA | Cost per acquisition | Spend ÷ Conversions |
| ROAS | Return on ad spend | Revenue ÷ Spend |
A worked example
Two campaigns ran last month:
| Campaign A | Campaign B | |
|---|---|---|
| Spend | $1,000 | $1,000 |
| Clicks | 2,000 | 800 |
| Conversions | 40 | 48 |
| Revenue | $2,400 | $3,840 |
Campaign A has more clicks and a lower CPC ($0.50 vs $1.25). It looks better at first. But Campaign B has a lower CPA ($20.83 vs $25) and a higher ROAS (3.84 vs 2.4). If the goal is profitable sales, B performed better.
Always ask which metric is closest to the business goal.
Questions to ask of any report
- What is the goal: awareness, leads or sales?
- What time period is covered, and is it comparable to the previous one?
- How is a "conversion" defined?
- Is revenue gross or after refunds?
- Are results different by device, audience or region?
Watch out for
- Vanity metrics: high impressions with no conversions.
- Small numbers: a 50% conversion rate from 4 clicks is not reliable.
- Attribution differences: different platforms may credit the same sale.
Turn it into a recommendation
A good summary might read: "Campaign B produced 20% more conversions at a lower cost per acquisition. We recommend shifting part of Campaign A's budget to B next month and reviewing again after four weeks."
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