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2. CTR — Click-Through Rate

What it means:
The percentage of people who saw your ad and actually clicked on it.

Formula:$$\text{CTR} = \frac{\text{Clicks}}{\text{Impressions}} \times 100$$CTR=ImpressionsClicks​×100

Example:
Your ad was shown 10,000 times (10,000 impressions).
200 people clicked.
→ CTR = (200 ÷ 10,000) × 100 = 2%

Think of it like: out of 100 people who see your store sign, 2 walk in.

Why it matters:
A high CTR usually means your ad and message are interesting or relevant to people.

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3. ROAS — Return On Ad Spend

What it means:
How much revenue you make for every $1 spent on ads.

Formula:$$\text{ROAS} = \frac{\text{Revenue from ads}}{\text{Ad spend}}$$ROAS=Ad spendRevenue from ads​

Example:
You spent $100 on ads.
You made $400 in sales from those ads.
→ ROAS = 400 ÷ 100 = 4.0 (or 400%)

Think of it like: for every $1 you put into ads, you got $4 back.

Goal:
You always want ROAS > 1 (meaning you’re making more than you spend).

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4. LTV — Lifetime Value (Customer Lifetime Value)

What it means:
How much money an average customer brings you over their lifetime — not just from one purchase.

Example:
A customer buys a $30 T-shirt today.
Then buys a hoodie for $50 next month.
Then another $30 T-shirt later.
→ Total = $110 over time.
Your LTV = $110

Why it matters:
You might spend $20 to get a customer (CPC + conversion costs), but if they bring you $110 over time, that’s still a win.

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5. KPI — Key Performance Indicator

What it means:
A measurable goal that shows how well your marketing is doing.
It’s like a scoreboard.

Examples of KPIs in marketing:

• CTR (if you want to measure ad engagement)
• ROAS (if you care about profit)
• Conversions (if you want sales)
• Cost per lead (if you’re getting signups)
• Customer retention rate (if you want repeat buyers)

Think of it like:
If your goal is to “drive more sales,” your KPIs might be:

• ROAS above 3x
• Cost per sale under $20