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Funnel

Performance Marketing Metrics (Quick Guide)

  1. CPM (Cost per Mille) How much you pay for every 1,000 ad views.
    = 1,000 x (Cost ÷ Impressions)

  2. CTR (Click-Through Rate) % of people who clicked after seeing your ad.
    = 100 x (Clicks ÷ Impressions)

  3. CPC (Cost per Click) How much it costs to bring one visitor to your site.
    = Cost ÷ Clicks

  4. CVR (Conversion Rate) % of visitors who completed a desired action (lead/sale).
    = 100 x (Conversions ÷ Clicks)

  5. CPA (Cost per Acquisition) Cost to acquire one paying customer.
    = Cost ÷ Customers

  6. ROAS (Return on Ad Spend) Revenue earned for every $1 spent on ads.
    = Revenue ÷ Ad Spend

  7. ROI (Return on Investment) Total profit margin after all costs.
    = 100 x (Profit ÷ Spend)

  8. LTV (Lifetime Value) Total revenue from one customer over time.
    = AOV × Purchase Frequency × Customer Lifespan

  9. AOV (Average Order Value) Average amount customers spend per purchase.
    = Total Revenue ÷ Number of Orders

  10. (LTV:CPA Ratio) How much value each customer brings vs cost to acquire them.
    = (LTV ÷ CAC) 3:1 is healthy — 5:1+ is excellent.

  11. Engagement Rate: % of audience who interacts with your content.
    = 100 x (Engagements ÷ Impressions)

  12. Bounce Rate: % of visitors who leave your site without taking action.
    = 100 x (Single-page visits ÷ Total visits)

Sample Marketing Funnel: From Awareness to Loyalty

Step 1- Awareness

Goal: Reach as many potential buyers as possible and introduce the brand or product.

What I Do:

I create short form UGC videos or lifestyle photos that highlight the product's benefits. The campaign objective is to gain Awareness or reach to maximize exposure and attract new audiences.

Key Metrics to Monitor: 

  • Impressions
  • CPM
  • CTR

Goal: Maintain a low CPM for efficient reach and a high CTR for engaging creatives. Once Awareness is built, the audience moves to next stage.

Step 2- Consideration

Goal: Turn Awareness into curiosity, get users to explore the website or product catalog.

What I Do:

I use Traffic or Engagement campaigns to retarget people who interacted with previous awareness ads. I create carousel ads, short demos, or testimonials that highlight key product features and benefits.

Key Metrics to Monitor:

  • CPC
  • CTR

Goal: Achieve a lower CPC while keeping a strong CTR, showing genuine purchase intent.

Step 3- Conversion

Goal: Drive real purchases and achieve total orders needed to meet the revenue goal.

What I Do:

I lunch sales Conversion campaigns targeting users who have already shown interest, such as those who viewed products or added to cart. These campaigns focus on urgency, limited offers and social proof visuals.

Key Metrics to Monitor:

  • CVR
  • CPA
  • ROAS

Goal: Maintain a healthy ROAS (typically 3x or higher) and ensure CPA remains profitable based on product margin.

Step 4- Measure & Improve

Goal: Review, measure and optimize performance to ensure continued improvement and profitablility.

What I Do:

After each campaign cycle, I analyze results across all funnel stages.

  • If CPM is too high: test new audiences or ad placements.
  • If CTR is low: I refresh creatives, visuals or headlines.
  • If CVR is weak: I improve the website experience, funnel, adjust the offer or CTA.

I allocate more budget towards top-performing ad sets with the lowest CPA and highest ROAS. A positive ROI means the campaign is profitable and can be scaled for even greater revenue.

Measure ROI after all ad costs and expenses.

In Simple Terms

  1. Show your products to as many people as possible: build awareness.
  2. Spark interest and encourage them to learn more: build consideration.
  3. Convert that interest into real purchases: drive conversions.
  4. Measure & Improve: performance, optimize and scale.

Every metric: CPM-CTR-CPC-CVR-CPA-ROAS-ROI