Core Metrics
Spend
What it is: The total amount of money you’ve spent on ads. How it’s calculated: Sum of all costs incurred for impressions, clicks, or actions. What good looks like: This depends on your budget. Monitor for unexpected changes.Impressions
What it is: The number of times your ads were displayed on screen. How it’s calculated: Each time an ad appears on someone’s screen counts as one impression. The same person can generate multiple impressions. What good looks like: More impressions generally means more reach, but quality matters more than quantity.Reach
What it is: The number of unique people who saw your ads. How it’s calculated: Counts each person once, even if they saw your ad multiple times. Impressions vs Reach: If you have 10,000 impressions and 5,000 reach, your average frequency is 2 (each person saw your ad twice).Clicks
What it is: The number of times people clicked on your ads. Types of clicks:- Link clicks: Clicks on the ad’s destination link
- All clicks: Includes link clicks plus clicks on likes, comments, shares, etc.
Efficiency Metrics
CTR (Click-Through Rate)
What it is: The percentage of impressions that resulted in a click. Formula:CTR = (Clicks ÷ Impressions) × 100
What good looks like:
| Industry | Average CTR |
|---|---|
| E-commerce | 1.0-2.0% |
| B2B | 0.5-1.0% |
| Retail | 1.5-2.5% |
| Finance | 0.5-1.0% |
CPC (Cost Per Click)
What it is: The average cost for each click on your ads. Formula:CPC = Spend ÷ Clicks
What good looks like: Lower is generally better, but not at the expense of quality. A \0.50 CPC that doesn’t.
CPM (Cost Per Mille)
What it is: The cost for 1,000 impressions. Formula:CPM = (Spend ÷ Impressions) × 1000
What good looks like: Varies widely by platform, audience, and competition. US Facebook ads typically range from \$5-15 CPM.
Conversion Metrics
Conversions
What it is: The number of desired actions taken after seeing or clicking your ad. Types of conversions:- Purchases
- Lead form submissions
- Sign-ups
- Add to cart
- App installs
- Page views
Cost Per Conversion (CPA)
What it is: The average cost to acquire one conversion. Formula:CPA = Spend ÷ Conversions
What good looks like: Should be lower than the value of your conversion. If a customer is worth \30 CPA is good.
ROAS (Return on Ad Spend)
What it is: The revenue generated for every dollar spent on ads. Formula:ROAS = Revenue ÷ Ad Spend
What good looks like:
| ROAS | Meaning |
|---|---|
| < 1x | Losing money |
| 1x | Breaking even |
| 2-3x | Good |
| 4-5x | Very good |
| > 5x | Excellent |
Video Metrics
Video Views
Types:- 3-Second Views: Number of times your video was watched for 3+ seconds
- ThruPlay Views: Watched to completion or 15+ seconds (whichever is shorter)
Video Completion Rate
What it is: Percentage of people who watched your video to the end. Formula:Completion Rate = (Completed Views ÷ Video Starts) × 100
What good looks like:
- 25% completion: Average
- 50%+ completion: Good
- 75%+ completion: Excellent
Engagement Metrics
Reactions
Likes, loves, hahas, wows, sads, and angrys on your ad.Comments
Number of comments on your ad.Shares
Number of times your ad was shared.Page Engagement
Total engagement actions (reactions + comments + shares + clicks).Interpreting Changes
When Metrics Increase
| Metric | Increase Could Mean |
|---|---|
| CTR | Better creative resonance, improved targeting |
| CPC | More competition, broader targeting |
| Conversions | Better funnel, seasonal demand |
| CPM | Higher demand, smaller audience |
When Metrics Decrease
| Metric | Decrease Could Mean |
|---|---|
| CTR | Ad fatigue, poor targeting, creative issues |
| CPC | Less competition, better quality score |
| Conversions | Funnel issues, landing page problems |
| ROAS | Increased costs, lower conversion rates |
Using Metrics Together
High CTR but low conversions
High CTR but low conversions
Your ads are engaging but not leading to action. Check:
- Landing page experience
- Offer alignment
- Audience intent
Low CTR but high ROAS
Low CTR but high ROAS
Your targeting is specific and converts well. Consider:
- You may be reaching exactly the right people
- Could potentially expand reach carefully
Increasing CPM with stable results
Increasing CPM with stable results
Competition is increasing. Options:
- Refresh creative to maintain engagement
- Find new audiences
- Accept higher costs if ROAS is still good
Decreasing reach with same budget
Decreasing reach with same budget
Audience fatigue or competition. Try:
- Expand targeting
- Refresh creative
- Test new audiences
Quick Metric Lookup
Ask AdsGateway for specific metrics:- “What’s my CTR for last week?”
- “What’s my ROAS for this month?”
- “What’s my CPC for my Summer Sale campaign?”
- “What’s my conversion rate for yesterday?”

