Digital Marketing Metrics That Matter
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Digital Marketing Metrics that Matter
{ value }
{ efficacy }
{ spend }
REVENUE METRICSWhen marketing ROI increases,
marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy
and creating more revenuefrom less investment.
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
PRE-CLICK METRICSWhen CPC decreases and
CTR increases, you get more prospects
in your funnel.
Clicks / Impressions * 100
Total Cost / Number of Leads
CPCCost Per Click
CPLCost Per Lead
Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer
CTRClick Through Rate
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
Digital Marketing Metrics Pyramid
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
The PyramidShows the RelationshipBetween traditionally ‘low-level’ metrics and business-changing marketing metrics.
{ value }
{ efficacy }
{ spend }
REVENUE METRICSWhen marketing ROI increases,
marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy
and creating more revenuefrom less investment.
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
PRE-CLICK METRICSWhen CPC decreases and
CTR increases, you get more prospects
in your funnel.
meet.ioninteractive.com/CAC
Clicks / Impressions * 100
Total Cost / Number of Leads
CPCCost Per Click
CPLCost Per Lead
Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer
CTRClick Through Rate
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC,their formulas and the chain of events that builds value and efficacy in digital marketing.
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Revenue MetricsCAC becomes a strategic indicator when used in ratios to judge the scalability of a business.Lower CAC is better. Way better.
CACCost to Acquire a Customer
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Holy Grail 101:Use less cents to make more bucks.
{ value }
{ efficacy }REVENUE METRICS
When marketing ROI increases,marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacyand creating more revenue
from less investment.
Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
ROI is just beneath CACIf you can increase marketing return on investment by getting more business out of equal or lesser spend, you will reduce CAC.Higher ROI is better.
ROIReturn on Investment
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click MetricsDrive Value.
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click MetricsDrive the R in ROI.
ROIReturn on Investment
{ value }
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPLCost Per Lead
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
CVR feeds ROI
CVRConversion Rate
If you can increase your conversion rate—the percentage of people who take marketing’s desired action—you will increase your marketing return on investment.Higher CVR is directly related to higher ROI.
{ value }
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPLCost Per Lead
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPL contributes value if…you can reduce CPL by increasing CVR—improving conversion quality while reducing spend.Lower CPL is better—unless quality suffers.
CPLCost Per Lead
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPL naturally goes downwhen—all things being equal—conversion rate goes up.Lower CPL is the result of higher CVR.
CPLCost Per Lead
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
{ spend }PRE-CLICK METRICSWhen CPC decreases and
CTR increases, you get more prospects
in your funnel.
Clicks / Impressions * 100CPCCost Per Click
CPLCost Per Lead
CTRClick Through Rate
CVRConversion Rate
Spend-focused marketingdelivers spend-focused results.
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPC & CTR improvewhen—all things being equal—the post-click experience is amazing.The post-click experience drives value—in ROI as well as spend.
CTRClick Through Rate
CPCCost Per Click
{ value }
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPLCost Per Lead
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click Focused Marketing Drives ROI-Focused Results.
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
What CMO doesn’t want more revenue from less investment?
© i-on interactive, inc. All rights reserved • www.ioninteractive.com
Morereturnfrom less investment.
{ value }
{ efficacy }
{ spend }
REVENUE METRICSWhen marketing ROI increases,
marketing’s portion of CAC (MCAC) is reduced—improving marketing efficacy
and creating more revenuefrom less investment.
POST-CLICK METRICSWhen CVR increases,CPL decreases and
ROI increases.
PRE-CLICK METRICSWhen CPC decreases and
CTR increases, you get more prospects
in your funnel.
meet.ioninteractive.com/CAC
Clicks / Impressions * 100
Total Cost / Number of Leads
CPCCost Per Click
CPLCost Per Lead
Total Period Cost / Customers Acquired in PeriodCACCost to Acquire a Customer
CTRClick Through Rate
( Gain - Cost ) / Cost * 100 ROIReturn on Investment
Converted Visitors / Total Visitors * 100CVRConversion Rate
Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC,their formulas and the chain of events that builds value and efficacy in digital marketing.
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