Performance Metrics
Performance metrics are indicators used to evaluate the effectiveness of marketing campaigns and advertising activities in terms of specific results (leads, sales, installs, etc.).
Simply put:
These are metrics that show whether marketing is generating real money and actions.
Key performance metrics
- CR (Conversion Rate)
The percentage of users who complete a target action. - CPC (Cost Per Click)
The cost of one click on an advertisement. - CPA (Cost Per Action)
The cost of a target action (lead, registration, purchase). - CAC (Customer Acquisition Cost)
The cost of acquiring one customer. - ROI / ROMI
Return on investment in marketing. - CTR (Click-Through Rate)
The clickability of an advertisement. - LTV (Lifetime Value)
How much a customer brings over their entire relationship with the business.
Where they are used
- Performance marketing
- Digital advertising
- E-commerce
- Mobile apps
- Lead generation
Why performance metrics are needed
They help to:
- Measure real advertising effectiveness
- Optimize budget
- Compare channels with each other
- Scale successful campaigns
- Make data-driven decisions
Difference from brand metrics
- Performance metrics — focused on results (sales, leads)
- Brand metrics — focused on perception (awareness, loyalty)
Example
If an ad campaign:
- Generates 100 purchases
- With a budget of €1,000
CPA = €10 → you can evaluate its effectiveness.
Key takeaway
Performance metrics are key indicators that measure marketing effectiveness through specific user actions. They are the foundation of performance marketing and allow you to manage advertising as an investment.
