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Definitions on Analytics

Definitions

C

Conversion Rate
Intro
The conversion rate is a measure of the percentage of visitors to a website or other online platform who take a desired action, such as making a purchase or signing up for a newsletter. It is calculated by dividing the number of conversions (or completed actions) by the total number of visitors, and is typically expressed as a percentage. For example, if a website receives 100 visitors and 20 of them make a purchase, the conversion rate would be 20%, indicating that 20 out of every 100 visitors made a purchase. Conversion rate is an important metric for measuring the effectiveness of a website or marketing campaign, as it provides insight into how well the website or campaign is able to persuade visitors to take a desired action. Read more about Conversion Rate

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Cost Per Click (CPC)
Intro
Cost per click (CPC) is a pricing model used in online advertising, where the advertiser pays a set amount each time their ad is clicked. This is in contrast to other pricing models, such as cost per impression (CPM), where the advertiser pays for each time their ad is displayed, regardless of whether it is clicked on. CPC is a commonly used pricing model for pay-per-click (PPC) advertising, where advertisers bid on keywords and pay each time a user clicks on their ad. The amount paid per click can vary depending on the competitiveness of the keyword and the quality of the ad. CPC is a useful metric for advertisers, as it provides a clear indication of the cost of acquiring a new customer or generating a lead. Read more about Cost Per Click (CPC)

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R

Return On Investment (ROI)
Intro
Return on investment (ROI) is a measure of the profit earned from an investment compared to the initial cost of the investment. It is typically expressed as a percentage, and is often used to compare the efficiency of different investments. The higher the ROI, the better the return on the investment. To calculate ROI, the net profit from the investment is divided by the initial cost of the investment, and the result is multiplied by 100 to express it as a percentage. For example, if an investment of $100 earns a net profit of $20, the ROI would be 20/100 * 100 = 20%. Read more about Return On Investment (ROI)

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