## Click-through rate (CTR):

Formula: =Clicks/Impressions

## Cost-per-click (CPC):

Formula: =Cost/Clicks

## Conversion rate:

Formula: =Conversions/Clicks

## Cost-per-conversion:

Formula: =Cost/Conversions

## Return on ad spend (ROAS):

Formula: =Revenue/Cost

Explanation: This formula divides the revenue generated by your ad campaign by the total cost of your campaign. The resulting figure is your ROAS.

## Average order value (AOV):

Formula: =Revenue/Orders

Explanation: This formula divides the total revenue generated by your ad campaign by the number of orders received. The resulting figure is your average order value.

## Cost of goods sold (COGS):

Formula: =Total_cost_of_goods_sold/Number_of_orders

Explanation: This formula calculates the average cost of goods sold (COGS) per order, by dividing the total cost of goods sold by the number of orders received.

## Cost per thousand impressions (CPM):

Formula: =Cost/Impressions*1000

Explanation: This formula calculates the cost per thousand impressions (CPM), which is the cost you pay for every 1000 times your ad is displayed. It’s calculated by dividing the total cost of your ad campaign by the number of impressions and then multiplying by 1000.

## Click-through conversion rate (CTCR):

Formula: =Conversions/Clicks*100

Explanation: This formula calculates the click-through conversion rate (CTCR), which is the percentage of clicks that result in a conversion. It’s calculated by dividing the number of conversions by the number of clicks and then multiplying by 100.

## Return on investment (ROI):

Formula: =(Revenue – Cost)/Cost

Explanation: This formula calculates the return on investment (ROI) for your ad campaign. It’s calculated by subtracting the total cost of your campaign from the revenue generated and then dividing it by the total cost. The resulting figure is a percentage that represents the return on your investment.

## Ad spends as a percentage of revenue:

Formula: =Cost/Revenue*100

Explanation: This formula calculates the ad spend as a percentage of revenue, which is the proportion of your revenue that is spent on your ad campaign. It’s calculated by dividing the total cost of your campaign by the revenue generated and then multiplying by 100.

Looking to optimize your inventory management? Check out our guide to 15 key performance indicators (KPIs) for inventory management, complete with formulas and explanations.

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