Glossaryreturn on investmentadvertising metrics

Return on Investment (ROI)

ROIad campaignprofit analysisinvestment return

Return on Investment (ROI)

A measure of how much a given investment or risk pays off relative to its cost.

In advertising, ROI is calculated by comparing the profit generated by a campaign against the initial spend required to run it. A positive ROI indicates the campaign returned more than it cost; a negative ROI signals the opposite. Advertisers use ROI alongside other performance metrics to evaluate campaign efficiency and guide future budget allocation.

Click
A click is an engagement metric that records every instance of a user clicking on an ad. Importantly, a click is counted regardless of whether the user successfully reaches the destination — if the target website is…
Click-Through Rate (CTR)
Also known as: CTR Click-through rate is the percentage of ad impressions that result in a click. It is calculated as: CTR = number of clicks ÷ number of impressions CTR is one of the core metrics for evaluating ad…
Conversion Rate (CVR)
Conversion rate (CVR) is the percentage of ad clicks that result in a conversion — meaning the user completed a desired action after clicking, such as making a purchase, signing up, or filling out a form. Formula: > CVR…
Impression
Also known as: ad view An impression is counted every time a creative (ad) is served to a user. It is one of the foundational performance indicators used to measure campaign delivery and reach. Impressions are counted…