Performance Marketing Formulas

Here are some key formulas used in performance marketing to measure success:

1. Cost Per Acquisition (CPA)
   CPA= Total Spend/Number of Acquisitions

Measures the cost of acquiring a single customer.

1. Return on Ad Spend (ROAS)
   ROAS= Revenue from Campaign/Ad Spend

Shows the revenue earned for each dollar spent.

1. Click-Through Rate (CTR)
   CTR= Total Clicks/Total Impressions×100 

Indicates the percentage of people who clicked on an ad.

1. Conversion Rate
   Conversion Rate=Total Conversions/Total Clicks×100

Measures the effectiveness of turning clicks into conversions.