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Metrics allow you to evaluate the most important indicator for any media buyer – the effectiveness of a campaign. These are tools for monitoring progress and development, which help assess bundles and adjust strategy.
Keitaro Tracker calculates them automatically. It collects data, uses formulas to calculate metrics, and shows results in reports. The tracker often gets the necessary data either with clicks from the traffic source (the expense part) or with conversions from affiliate networks (the revenue part). Or it determines by its mechanisms, for example, the Geo of a click using the Keitaro Geo database.
Mainly, metrics consist of revenue and expense parts and can be percentage-based like LP CTR, quantitative, for example, LP Clicks (Landing Page Clicks), or financial, for example, CPA (Cost per Action).
In Keitaro Tracker, you can view all the metrics you need in one report for any campaign, offer, landing page, affiliate network, or traffic source individually or in your preferred grouping in a consolidated report.
Read the article here for more details on building reports in Keitaro Tracker.
Essential Metrics in an Ad Tracker
There are five important metrics that any advertising tracker must be able to calculate. You must understand well what they mean and how to use them to profit from media buying.
ROI
ROI (Return on Investment) is a percentage measure of profitability or a return on investment. You can read more about this metric in our article here.
Its basic formula is:
Keitaro Tracker will help you calculate three types of ROI: expected, confirmed, and total.
ROI (total) is calculated for all conversions in all statuses using the formula:
ROI = ((Revenue in hold + Confirmed revenue) – Cost) / Cost * 100
Revenue in hold is the income from a conversion the affiliate network sent with the Lead status. For example, when a customer has placed an order through your offer but has not yet confirmed or paid for it. If the user refuses the product, you often do not receive a payout from this Lead, and it moves to the Rejected status.
Confirmed revenue is the income from a conversion with the status Sale. This means the customer ordered the product, confirmed the purchase, and paid for it. This indicator can be higher or lower than the Revenue in hold, depending on the conditions of the affiliate network for your specific offer.
ROI (expected) shows the profitability from conversions in the Lead status and is calculated using the formula:
ROI (expected) = (Revenue in hold – Cost) / Cost * 100
ROI (confirmed) shows how much you have earned and is calculated using the formula:
ROI (confirmed) = (Confirmed revenue – Cost) / Cost * 100
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CPA
CPA (Cost Per Action) is one of the most popular payment methods, which reflects the cost per target action. It has several variations — for example, CPL (Cost Per Lead) and CPS (Cost Per Sale).
This is a financial metric that is calculated using the basic formula:
For example, you want to know how much you spent to attract users who made a purchase. You spent $100 on the campaign and received 50 clicks, 5 of which resulted in a product purchase. Therefore, the CPS in this campaign was $20: (100 / 5) = 20.
In addition to the general CPA metrics, Keitaro Tracker also has uCPA (Unique CPA) metrics, which show the cost of target actions for unique clicks.
These metrics allow you to quickly determine how much you spend for each target action unique visitors make. This is important because, for example, a person could click on your link many times, say 50, but only make one purchase. This distinction helps in understanding and optimizing your advertising spending more effectively.
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СTR
CTR (Click-Through Rate) shows the frequency of clicks on an advertisement. It is measured in percentages and is typically calculated using the formula:
Keitaro Tracker cannot access data on the number of impressions of your advertisements. You can view this information in the traffic source.
However, the tracker automatically calculates another important metric, LP CTR (Landing Page Click-Through Rate), for Landing Page-Offer bundles based on the number of clicks using the formula:
LP CTR = Clicks of Landing Page / Visitors of Landing Page * 100
Thanks to this metric, you can assess the effectiveness of creatives on your landing pages, specifically during A/B testing.
For example, if you have three different landing pages for one offer: LP CTR for Landing Page 1 = 10%, LP CTR for Landing Page 2 = 15%, and LP CTR for Landing Page 3 = 75%. The performance of the first two landing pages is relatively low, while the third one is very high. This means you can disable the first two landing pages and direct traffic only to the third one. This helps optimize your campaign for better results.
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CR
CR (Conversion Rate) shows the conversion rate, which is calculated using the following standard formula and is measured in percentages:
In Keitaro Tracker, there are six types of CR metrics: Total, Leads, Sales, Registrations to Deposits, Unique (uCR), Unique from Leads to Registrations, and Unique from Registrations to Deposits. This variety of CR metrics allows you to effectively monitor user behavior at each stage of the funnel.
CR calculates the overall conversion rate.
CR (Leads) calculates the conversion rate in hold, meaning conversions where a purchase has yet to be made.
CRs (Sales) calculates the conversion rate for confirmed conversions where a purchase has been made.
CR (Registrations to Deposits) calculates the conversion rate from registrations to deposits and is commonly used for iGaming offers.
uCR (Registrations) shows the conversion rate from the Lead status to registrations for unique clicks.
uCR (Deposits) shows the conversion rate from registration to deposits for unique clicks.
uCR shows the conversion rate from the Lead status for unique clicks.
For example, if you have 10 sources from which you are driving traffic to one campaign, using CR, you can determine which sources are more or less profitable for that specific campaign. You can also make groups in a consolidated report by any other parameter or their combination, such as by offer and source. This allows you to view metrics for each offer in each source and optimize your campaigns for profitability. You can read more about the capabilities of consolidated reports here.
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EPC
EPC (Earnings Per Click) shows how much you have earned in a quantitative value from each click. The basic formula for calculating this metric is:
In Keitaro Tracker, there are 6 variations of this metric: Total, Expected, Confirmed, Unique Total (uEPC), Unique Expected, and Unique Confirmed. These variations provide different insights into your earnings per click.
EPC is calculated from the total revenue (in hold + confirmed), EPC (expected) is calculated from the revenue in hold, and EPC (confirmed) is calculated from the confirmed revenue. The three variations of uEPC calculate three types of earnings per click relative to the number of unique clicks. These metrics help you understand how much revenue you generate for each click under different circumstances.
Not every click results in a conversion, but you pay for each of them. The EPC metric helps you calculate whether you profit or lose from each click in specific campaigns, offers, landing pages, or traffic sources. It provides valuable insights into the profitability of your advertising efforts.
Keitaro Tracker offers a wide range of metrics and their variations, allowing you to monitor your campaigns, analyze data, optimize bundles, and adjust strategies. This comprehensive set of metrics helps you make informed decisions and improve the performance of your advertising campaigns. You can find a more detailed list of formulas for popular metrics in the Glossary.
