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Understanding Key Metrics | Programmatic

Programmatic campaign performance is measured using key metrics such as impressions, clicks, CTR, and CPM. Impressions show visibility, CTR measures how well ads resonate with audiences, clicks indicate engagement, and CPM reflects the cost to serve impressions. Together, these metrics provide insight into reach, efficiency, and effectiveness of campaigns.

Key Takeaways

  • Impressions → Gauge brand visibility and reach.

  • Clicks → Show user interest and engagement.

  • CTR (Click-Through Rate) → Measures ad relevance and effectiveness; higher CTR means stronger resonance with the audience.

  • CPM (Cost Per Thousand) → Tracks cost efficiency for impressions; fluctuates with targeting, competition, and seasonality.

 

Metric Definition Why it Matters
Impressions Total number of times the ad was shown. Measures brand visibility and overall reach.
Clicks Number of times users clicked on the ad. Indicates user interest and engagement with the ad.
CTR Percentage of impressions that resulted in a click.
Formula: (Clicks ÷ Impressions) × 100		 Evaluates ad effectiveness and targeting; higher CTR means stronger audience resonance.
CPM

Cost per Thousand Impressions.
Formula: (Cost ÷ Impressions) × 1000

 Reflects cost efficiency; fluctuates by audience, location, competition, and seasonality.
VTC

User who lands back on the website after viewing the ad, but not initially interacting.

 Shows the influence of ad creative + how it can lead to future interaction.