4 Important Metrics to Measure in Paid Traffic Campaigns

By Ryan Deiss, Russ Henneberry

Part of Digital Marketing For Dummies Cheat Sheet

When running paid traffic campaigns on advertising platforms like Facebook, Google, Twitter, or LinkedIn, you’ll have no shortage of data at your disposal. And thanks to its nature, digital advertising is infinitely more measurable than its counterpart in the offline world.

Although you can glean important information from the dozens of available metrics, for your paid traffic campaigns, keep most of your analysis focused on these four core metrics:

  • Cost per acquisition of customer (CPA): The amount of advertising spend divided by the number of customers generated. Drill down on this metric by calculating CPA by traffic campaign, traffic source, and more.
  • Cost per lead (CPL): The amount of advertising spend divided by the number of leads generated. Drill down on this metric by calculating CPL by traffic campaign, traffic source, and more.
  • Click-through rate (CTR): The number of clicks divided by the number of impressions on an ad and any other call to action. The higher the click-through rate, the more prospects you will be moving from stage to stage in the customer journey.
  • Cost per click (CPC): The amount of advertising spending divided by the number of clicks on the ad, ad set, or ad campaign.

Although the click-through rate (CTR) and cost per click (CPC) are important metrics to monitor, they are not as important as your cost per acquisition (CPA) and cost per lead (CPL). After all, if your lead, customer acquisition, or both costs are within the range of profitability, a low click-through rate or high cost per click becomes less important.