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Performance indicators are a vital tool in the digital marketing process, allowing advertisers to gauge the success of their advertising efforts through a variety of metrics. As consumer attention becomes more fragmented and ad blindness rises, traditional metrics such as CTR, impressions, or ad frequency are increasingly falling short of telling the whole story.
Views, impressions, and clicks are important, but are often touted as the end-goal or evidence of ultimate advertising effectiveness. Times and audiences are changing, and advertisers will need more advanced means of measuring success if they want to keep up. Let’s take a look at some alternate metrics that advertisers can use to better understand the big picture of their marketing efforts.
The Marketing Efficiency Ratio: Measuring Comprehensive Efforts
Return on Ad Spend (ROAS) is the classic metric to gauge overall campaign performance, and it seems simple enough: money in versus money out. It has become an industry standard for good reason; its straightforward calculation helps marketers see whether their ad dollars are paying off. But ROAS has some serious limitations.
For one, ROAS doesn’t factor in the different stages of the funnel. Comparing the ROAS of a top-of-funnel awareness campaign to an end-of-funnel retargeting campaign might suggest that a company is wasting resources on visibility and branding, when those efforts are actually critical to long-term growth. Also, because ROAS is measured per campaign, it’s easy enough to manipulate ad spend and achieve a high ROAS without necessarily contributing much to sustainable revenue.
This is where the Marketing Efficiency Ratio (MER) comes in. Unlike ROAS, which zooms in on individual campaigns, MER takes a big-picture view by comparing ALL marketing spend – across all channels – to the total revenue of the company. This holistic perspective is more realistic in today’s world where marketing channels don’t exist in silos, but should work together to guide customers from awareness to purchase.
ROAS will naturally fluctuate as campaigns launch, pause, or end. But if your MER declines, that’s a clear signal that your entire marketing strategy may need a rethink. For more insight on MER and its ability to improve advertisers’ efforts, check out Genius Monkey’s recent white paper on MER vs. ROAS!
Engaged View-Through Rate: Measuring Beyond the Click
Not every ad shown will lead to a click, yet a well-placed impression can spark interest that converts days or even weeks later. That’s why view-through rates (VTR) exist: they count the number of users who saw an ad and later converted, giving credit where it’s due for upper-funnel impact.
Engaged view-through rate (eVTR) goes one step further. Instead of just noting whether a user eventually converted, eVTR digs into the actions those users took along the way. Did they spend longer-than-average time on a page? Did they come back later to learn more? Did they sign up for a newsletter or download a guide? These micro-actions show real intent and engagement, which are vital signals that an ad’s message is sticking with your audience.
By spotlighting the meaningful moments when people move from awareness to consideration, eVTR helps advertisers demonstrate the true value of upper-funnel campaigns that traditional click metrics often overlook.
Customer Acquisition Cost: Measuring Lifetime Value
Modern analytics tools have made it easier than ever to know exactly how much it costs to bring in a single new customer. While Customer Acquisition Cost (CAC) is a fairly common KPI, its true potential shines when used alongside Customer Lifetime Value (LTV). Taken together, CAC and LTV reveal not just what it costs to win a customer, but how much that customer will likely bring in over time.
For example, a retargeting campaign might deliver conversions at a lower-than-average CAC, but if those new customers churn quickly, you’re not really gaining much. Meanwhile, broader awareness campaigns might cost more per conversion upfront but could attract loyal customers who deliver significantly higher lifetime value. Tracking CAC against LTV helps advertisers identify which campaigns, channels, and messages are bringing in the highest-value customers at the most efficient cost.
Connecting Alternate Metrics to the Conversion Funnel
The real power of these alternate metrics lies in how they map your customer’s journey through the funnel.
- MER offers a broad, macro view of how efficiently your total marketing investment is generating revenue.
- Attention metrics and engaged view-through rates show whether you’re effectively capturing interest and driving deeper engagement at the top and middle of the funnel.
- CAC ensures you’re not just acquiring customers, but acquiring them cost-effectively with an eye on long-term value.
Taken together, these metrics help advertisers move beyond the outdated “last-click” mindset. By looking beyond the regular numbers, marketers can better understand how every impression, action, and interaction works in concert to deliver sustainable growth.
Trading Vanity for Substance
As consumer behaviors evolve and media consumption becomes more fragmented, advertisers must demand more from their data. Alternate metrics like MER, attention, eVTR, and CAC don’t just look good in a report; they make your budget work harder by ensuring every dollar spent moves customers further down the funnel.
The days of fire-and-forget advertising are over. This is the next level of programmatic advertising, and it’s possible through data-driven platforms like Genius Monkey. Our tools provide the data insights advertisers need to understand the entire customer journey, and our team of experts is here to make it happen no matter the budget.
If you’re ready to start increasing conversions and long-term growth, now is the time for you to get in touch with Genius Monkey and evolve your marketing strategy!
