Summary  
This chapter explains how to define, calculate, and interpret key performance metrics and KPIs, apply attribution models to assign credit across interactions, and use A/B testing to iteratively optimize based on aggregated data.

General domain of usage  
Digital advertising

- **Impressions** - how many times an ad is shown;
- **Clicks** - how many times users interact with the ad;
- **CTR (Click-Through Rate)** - clicks ÷ impressions, indicates relevance/engagement;
- **CPC (Cost Per Click)** - cost for each click, key metric for budgeting;
- **CPM (Cost Per Thousand Impressions)** - cost per 1,000 views, common for brand awareness;
- **ROAS (Return on Ad Spend)** - revenue per $1 spent (e.g., 5:1 → $5 earned for every $1).

Definition

Digital ad performance is tracked through **metrics** and **KPIs** to make **data-driven** decisions and maximize ROI. Analyze metrics together (not in isolation) and iterate via **A/B testing** to optimize results.

**Conversions** (purchases, sign-ups, downloads) may occur later than the click. Use attribution models:
- **First-click**: credits the first interaction;
- **Last-click**: credits the final ad before purchase;
- **Multi-touch**: distributes credit across interactions in the customer journey.

Note

Monitor trends and compare audiences in **Ads Manager/Google Analytics**; continually optimize targeting, creatives, and bids with A/B tests aligned to business goals.

What does Click-Through Rate (CTR) measure?

Which metric is primarily used in brand awareness campaigns?

How does multi-touch attribution differ from last-click attribution?

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Key Advertising Metrics and KPIs

1. What does Click-Through Rate (CTR) measure?

2. Which metric is primarily used in brand awareness campaigns?

3. How does multi-touch attribution differ from last-click attribution?