A Key Performance Indicator helps to understand how the operation is performing. It acts as a compass, helping us understand whether we are taking the right path toward our strategic goals. To be effective, a performance indicator must be well-defined and quantifiable, and applicable to our operation. We use a suite of media metrics to benchmark our projects right from the beginning.

**CPM β Cost per thousand impressions**. The CPM stands for cost per thousand impressions is the rate to be charged or paid for every 1,000 times an advertisement is displayed

**CTR β Click Through Rate**. The page click-through rate (CTR) is the number of ad clicks divided by the number of page views.

**CPC β Cost per Click**. The cost-per-click (CPC) is the amount you earn each time a user clicks on your ad.

**Formula β CPM**. The formula for calculating CPM based on CTR and CPC is: CPM = 1000 Γ CTR Γ CPC.

**Formula β CPC**. The formula for calculating CPC based on CTR and CPM is: CPC = CPM / (1000 Γ CTR).

**Formula β CTR**. The formula for calculating CTR based on CPM and CPC is: CTR = CPM / (1000 Γ CPC).

**Customer Acquisition Cost**. All Sales and Marketing costs (advertising, salary, commission, bonus, overhead and other) in a period divided by the number of new customers in that period.

**Marketing % of Customer Acquisition Cost**. Take all the Marketing cost, and divide by the total Sales and Marketing costs you used to compute CAC.

**The ratio of Customer Lifetime Value to CAC**. To compute LTV. take the annual payments from a customer. adjust for your gross margin. and divide by the annual cancellation rate or churn. Then divide LTV by CAC for the ratio.

**Time to Payback CAC**. Take the CAC and divide by how much your customers pay you on average each month.

**Marketing Originated Customer %**. Take all new customers you signed up in a period, and look at what % of them started with a lead that Marketing generated.

**Marketing Influenced Customer %**. Take all new customers you signed up in a period. and look at what % of them had any interaction with a Marketing activity.