Digital Marketing & Advertising KPIs Vocabulary

Vocabulary practice flashcards defining digital marketing and advertising metrics, key performance indicators, and their exact formulas.

CPL (Cost Per Lead)

Average cost of one lead; the most common Primary KPI for B2B and service businesses. Formula: $\text{CPL} = \text{Spend} / \text{Leads}$

CPA (Cost Per Acquisition)

Cost per completed conversion goal, broader than CPL, used when the target action is a purchase or completed sign-up. Formula: $\text{CPA} = \text{Spend} / \text{Conversions}$

ROAS (Return on Ad Spend)

For every $1 spent, how many dollars came back in revenue. The default Primary KPI for e-commerce. Formula: $\text{ROAS} = \text{Revenue} / \text{Spend}$

Revenue / Conversion Value

The actual dollar value generated by a campaign; the number every other Primary KPI is ultimately trying to grow. Formula: Raw total, not a ratio

Conversion Rate (CVR)

Of the people who clicked, the percent who completed the goal action. Formula: $\text{CVR} = (\text{Conversions} / \text{Clicks}) \times 100$

Cost Per Purchase

Cost per completed purchase specifically, used alongside ROAS as a sanity check against AOV swings. Formula: $\text{Cost Per Purchase} = \text{Spend} / \text{Purchases}$

CPM (Cost Per Mille)

Cost to reach 1,000 impressions; shows how expensive the auction is, says nothing about whether it worked. Formula: $\text{CPM} = (\text{Spend} / \text{Impressions}) \times 1000$

CPC (Cost Per Click)

Average price paid for one click. Useful for diagnosing auction competitiveness, not outcome quality. Formula: $\text{CPC} = \text{Spend} / \text{Clicks}$

CTR (Click-Through Rate)

Percent of impressions that were clicked. A strong signal of creative/message relevance. Formula: $\text{CTR} = (\text{Clicks} / \text{Impressions}) \times 100$

Impressions

Raw count of how many times the ad was shown. On its own tells you nothing about quality. Formula: Raw count, no formula

Reach

Number of unique people who saw the ad, counting each person once regardless of repeat views. Formula: Raw count, no formula

Frequency

Average number of times one person saw the ad. Rising frequency with falling CTR signals fatigue. Formula: $\text{Frequency} = \text{Impressions} / \text{Reach}$

Quality Score (Google)

Google's 1-10 rating of expected CTR, ad relevance and landing page experience; a reported score, not something you calculate. Formula: No public formula, reported score 1-10

Impression Share

The percent of impressions you actually got out of everything you were eligible for. Formula: $\text{Impression Share} = \text{Impressions Received} / \text{Total Eligible Impressions} \times 100$

Cost Per Conversion

Average cost of one conversion, whatever the conversion action is set to. Formula: $\text{Cost Per Conversion} = \text{Spend} / \text{Conversions}$

Impression Share Lost (Budget)

Percent of eligible impressions missed because the campaign ran out of budget. Formula: $\text{Lost IS (Budget)} = \text{Impressions Lost to Budget} / \text{Total Eligible Impressions} \times 100$

Impression Share Lost (Rank)

Percent of eligible impressions missed because ad rank was too low (bid or Quality Score problem). Formula: $\text{Lost IS (Rank)} = \text{Impressions Lost to Rank} / \text{Total Eligible Impressions} \times 100$

Absolute Top Impression Share

Percent of your impressions that showed in the very first ad position on the page. Formula: $\text{Absolute Top IS} = \text{Absolute Top Impressions} / \text{Total Eligible Impressions} \times 100$

Call Conversion Rate

For search ads with call extensions, the percent of calls that count as a conversion (usually a call over a set duration). Formula: $\text{Call CVR} = \text{Qualifying Calls} / \text{Total Calls} \times 100$

New Customer ROAS

ROAS calculated only on revenue from first-time buyers, separated from repeat purchase revenue. Formula: $\text{New Customer ROAS} = \text{New Customer Revenue} / \text{Spend}$

AOV (Average Order Value)

Average dollar value of each order. Formula: $\text{AOV} = \text{Revenue} / \text{Number of Orders}$

Click Share

Percent of clicks you got out of all clicks available to ads like yours in the market. Formula: $\text{Click Share} = \text{Your Clicks} / \text{Total Estimated Available Clicks} \times 100$

Conversion Value / Cost

Performance Max's blended version of ROAS, aggregated across every surface it serves on. Formula: $\text{Conversion Value / Cost} = \text{Total Conversion Value} / \text{Spend}$

vCPM (Viewable CPM)

Cost per 1,000 impressions that were actually viewable on screen. Formula: $\text{vCPM} = (\text{Spend} / \text{Viewable Impressions}) \times 1000$

Viewability Rate

Percent of served impressions that met the viewable standard (roughly 50% of the ad visible for 1+ second). Formula: $\text{Viewability Rate} = \text{Viewable Impressions} / \text{Total Impressions} \times 100$

Engagement Rate

Percent of impressions that resulted in an engagement (like, comment, share, save, click, etc. depending on platform). Formula: $\text{Engagement Rate} = \text{Engagements} / \text{Impressions} \times 100$

CPV (Cost Per View)

Cost each time someone watches to completion, watches 30 seconds, or interacts, whichever comes first. Formula: $\text{CPV} = \text{Spend} / \text{Views}$

View Rate

Percent of impressions that turned into a counted view instead of being skipped. Formula: $\text{View Rate} = \text{Views} / \text{Impressions} \times 100$

CPCV (Cost Per Completed View)

Cost per person who watched the entire ad; mostly used for non-skippable or bumper formats. Formula: $\text{CPCV} = \text{Spend} / \text{Completed Views}$

Average Watch Time

The average length of time viewers spent watching a video ad. Formula: $\text{Average Watch Time} = \text{Total Watch Time} / \text{Views}$

Audience Retention %

Percent of the video's length the average viewer watched before dropping off. Formula: $\text{Retention \%} = \text{Average Watch Time} / \text{Video Length} \times 100$

Cost / Conv. (Performance Max)

Blended cost per conversion across every channel PMax touches (Search, Display, YouTube, Shopping, Discover, Gmail, Maps). Formula: $\text{Cost / Conv.} = \text{Spend} / \text{Conversions}$

Cost Per Result (Meta)

Meta's generic label for cost per whatever the campaign's optimization event is (lead, purchase, install, etc.). Formula: $\text{Cost Per Result} = \text{Spend} / \text{Results}$

Estimated Ad Recall Lift Rate

Estimated percent increase in people who would remember the ad vs a control group who did not see it; reported directly by Meta. Formula: Reported directly by Meta

Cost Per 1,000 People Reached (CPP)

Cost to reach 1,000 unique people, as opposed to 1,000 impressions. Formula: $\text{CPP} = (\text{Spend} / \text{Reach}) \times 1000$

Cost Per Estimated Ad Recall Lifter

Cost per additional person estimated to remember the ad because they saw it. Formula: $\text{Cost per Lifter} = \text{Spend} / \text{Estimated Ad Recall Lifters}$

Landing Page View Rate

Of people who clicked the link, the percent whose landing page actually loaded. Formula: $\text{LPV Rate} = \text{Landing Page Views} / \text{Link Clicks} \times 100$

Cost Per Landing Page View

Cost per person who actually reached and loaded the landing page. Formula: $\text{Cost per LPV} = \text{Spend} / \text{Landing Page Views}$

Unique CTR

Click-through rate counted by unique people rather than by impression, removing the effect of one person clicking twice. Formula: $\text{Unique CTR} = \text{Unique Clicks} / \text{Reach} \times 100$

Cost Per Engagement (CPE)

Cost per like, comment, share, reaction, retweet, reply, click or follow, depending on platform billing event. Formula: $\text{CPE} = \text{Spend} / \text{Total Engagements}$

Cost Per Post Engagement

Cost specifically per engagement with the post itself (likes, comments, shares, photo views), separate from off-post actions. Formula: $\text{Cost per Post Engagement} = \text{Spend} / \text{Post Engagements}$

Form Completion Rate

Of people who opened a lead form, the percent who submitted it. Formula: $\text{Completion Rate} = \text{Forms Completed} / \text{Forms Opened} \times 100$

Cost Per Form Open

Cost per person who opened the lead form, whether or not they finished it. Formula: $\text{Cost per Form Open} = \text{Spend} / \text{Forms Opened}$

Cost Per Qualified Lead

Cost per lead recalculated using only leads marked qualified in your CRM. Formula: $\text{Cost per Qualified Lead} = \text{Spend} / \text{Qualified Leads}$

CPI (Cost Per Install)

Cost per app install. Formula: $\text{CPI} = \text{Spend} / \text{Installs}$

Cost Per App Event

Cost per a specific in-app action, such as registration or first purchase. Formula: $\text{Cost Per App Event} = \text{Spend} / \text{Target Events}$

ROAS (in-app)

Revenue from in-app purchases relative to ad spend. Formula: $\text{ROAS} = \text{In-App Purchase Value} / \text{Spend}$

Cost Per Add to Cart

Cost per add-to-cart event. Formula: $\text{Cost per ATC} = \text{Spend} / \text{Add to Carts}$

Cost Per Initiate Checkout

Cost per person who started checkout; sits between Add to Cart and Purchase in the funnel. Formula: $\text{Cost per IC} = \text{Spend} / \text{Initiate Checkouts}$

Purchase Conversion Rate

Of people who clicked the link, the percent who completed a purchase. Formula: $\text{Purchase CVR} = \text{Purchases} / \text{Link Clicks} \times 100$

Cost Per ThruPlay

Cost per 15-second view, or a full view if the video is shorter. Formula: $\text{Cost Per ThruPlay} = \text{Spend} / \text{ThruPlays}$

Hook Rate

Percent of impressions where someone watched at least 3 seconds; the strongest signal of whether the opening frame stops the scroll. Formula: $\text{Hook Rate} = \text{3-Second Video Plays} / \text{Impressions} \times 100$

Hold Rate

Of the people who watched past 3 seconds, the percent who kept watching to a ThruPlay; a read on whether the content itself delivers. Formula: $\text{Hold Rate} = \text{ThruPlays} / \text{3-Second Video Plays} \times 100$

Cost Per 2-Second Continuous View

Cost per 2 continuous seconds of playback. Formula: $\text{Cost per 2-Sec View} = \text{Spend} / \text{2-Sec Views}$

Cost Per Website Conversion

Cost per conversion tracked on your own website via the LinkedIn Insight Tag. Formula: $\text{Cost per Website Conversion} = \text{Spend} / \text{Website Conversions}$

Video Completion Rate

For video ads, the percent of viewers who watched to the end. Formula: $\text{Completion Rate} = \text{Completed Views} / \text{Video Starts} \times 100$

Social Action Rate

Rate of shares and comments specifically; a stronger organic-style signal than raw engagement. Formula: $\text{Social Action Rate} = (\text{Shares} + \text{Comments}) / \text{Impressions} \times 100$

Open Rate

Percent of recipients who opened a message ad. Formula: $\text{Open Rate} = \text{Opens} / \text{Sends} \times 100$

CTR (message-level)

Clicks relative to total sends, not just opens, for Sponsored Messaging. Formula: $\text{CTR} = \text{Clicks} / \text{Sends} \times 100$

Cost Per Send

Cost per message delivered. Formula: $\text{Cost per Send} = \text{Spend} / \text{Messages Sent}$

Send-to-Click Rate

Of people who opened a message, the percent who then clicked; isolates the message body from the open itself. Formula: $\text{Send-to-Click} = \text{Clicks} / \text{Opens} \times 100$

Form Fill Rate (LinkedIn)

Of people who opened a Lead Gen Form, the percent who submitted it; runs high on LinkedIn because fields pre-fill from the profile. Formula: $\text{Fill Rate} = \text{Form Completions} / \text{Form Opens} \times 100$

Lead-to-Opportunity Rate

Of the leads generated, the percent that become a sales opportunity in the CRM; the real quality check on LinkedIn leads. Formula: $\text{Lead-to-Opp Rate} = \text{Opportunities Created} / \text{Leads} \times 100$

Cost Per Follow / CPF

Cost per new follower gained. Formula: $\text{Cost per Follow (CPF)} = \text{Spend} / \text{New Followers}$

Cost Per 6-Second View

Cost per view that reached the 6-second mark on TikTok; a stronger attention signal than a 2-second view. Formula: $\text{Cost per 6-Sec View} = \text{Spend} / \text{6-Sec Views}$

Cost Per Registration

Cost per in-app registration event. Formula: $\text{Cost per Registration} = \text{Spend} / \text{Registrations}$

GMV (Gross Merchandise Value)

Total value of goods sold through TikTok Shop, including both organic and paid. Formula: Raw total, not a ratio

Outbound Click Rate

Percent of impressions on Pinterest that clicked through off-platform to your site, as opposed to just expanding the Pin in-app. Formula: $\text{Outbound CTR} = \text{Outbound Clicks} / \text{Impressions} \times 100$

Save Rate

Percent of impressions where someone saved a Pin to a board; a forward-looking purchase-intent signal given Pinterest's long attribution window. Formula: $\text{Save Rate} = \text{Saves} / \text{Impressions} \times 100$

Cost Per Checkout

Cost per completed checkout event on Pinterest. Formula: $\text{Cost per Checkout} = \text{Spend} / \text{Checkouts}$

Cost Per Reply

Cost isolated to just replies on X; a higher-value engagement type than a like. Formula: $\text{Cost per Reply} = \text{Spend} / \text{Replies}$

MER (Marketing Efficiency Ratio) / Blended ROAS

Total business revenue divided by total ad spend across every platform combined; harder to game than single-platform ROAS. Formula: $\text{MER} = \text{Total Revenue} / \text{Total Ad Spend}$

CAC (Customer Acquisition Cost)

Fully-loaded cost to acquire one new customer. Formula: $\text{CAC} = \text{Total Acquisition Spend} / \text{New Customers Acquired}$

LTV (Customer Lifetime Value)

Total revenue or profit expected from one customer over their whole relationship with the business. Formula: $\text{LTV} = \text{AOV} \times \text{Purchase Frequency} \times \text{Average Customer Lifespan}$

LTV:CAC Ratio

Value returned per dollar spent acquiring a customer; 3:1 or higher is a commonly used healthy benchmark. Formula: $\text{LTV:CAC} = \text{LTV} / \text{CAC}$

POAS (Profit on Ad Spend)

Like ROAS but uses gross profit instead of revenue; reflects real profitability after product cost. Formula: $\text{POAS} = \text{Gross Profit from Ads} / \text{Ad Spend}$

Payback Period

How long it takes to earn back the CAC spent on a customer. Formula: $\text{Payback Period} = \text{CAC} / \text{Average Monthly Revenue per Customer}$

Contribution Margin

Revenue left after variable costs like COGS, ad spend and payment fees; what's left to cover fixed costs and profit. Formula: $\text{Contribution Margin} = \text{Revenue} - \text{Variable Costs (COGS + Ad Spend + Fees)}$

Blended CPA

CPA across all channels combined, avoiding one channel's attribution inflating the picture. Formula: $\text{Blended CPA} = \text{Total Spend (all channels)} / \text{Total Conversions (all channels)}$

Marketing % of Revenue

How much of total revenue is reinvested into marketing; a business-level sanity check. Formula: $\text{Marketing \%} = (\text{Total Marketing Spend} / \text{Total Revenue}) \times 100$

nCAC (New Customer CAC)

CAC calculated using only spend and customers attributable to first-time buyers; sharper than blended CAC when repeat purchase is common. Formula: $\text{nCAC} = \text{New Customer Acquisition Spend} / \text{New Customers}$

Gross Margin %

Percent of revenue kept after the direct cost of the product itself; needed to calculate POAS. Formula: $\text{Gross Margin \%} = (\text{Revenue} - \text{COGS}) / \text{Revenue} \times 100$