CTR
Clicks / Impressions × 100
10,000 impressions, 500 clicks → CTR = 5%. High CTR means the ad gets clicked frequently — it does not mean the campaign is profitable.
CPC
Cost / Clicks
AED 1,000 spend, 200 clicks → CPC = AED 5.
CPM
Cost / Impressions × 1,000
AED 500 / 50,000 impressions → CPM = AED 10. More commonly important in awareness/display/video.
CVR
Conversions / Clicks × 100
500 clicks, 25 leads → CVR = 5%.
CPA
Cost / Conversions
AED 2,000 / 20 leads → CPA = AED 100.
CPL
Ad Spend / Leads
AED 3,000 / 30 leads = AED 100 CPL. CPL is not necessarily customer acquisition cost.
CAC
Spend / Customers
100 leads → 20 qualified → 5 customers, spend AED 5,000 → CPL = AED 50, but CAC = AED 1,000. Track downstream CRM outcomes.
Revenue
Purchases × AOV
100 purchases × AED 500 AOV = AED 50,000 revenue.
AOV
Revenue / Orders
AED 50,000 / 100 = AED 500 average order value.
ROAS
Revenue / Ad Spend
AED 50,000 revenue / AED 10,000 spend → ROAS = 5, usually expressed as 500%.
ROI
(Net profit / investment) × 100
Revenue AED 50,000; ad spend AED 10,000, COGS AED 20,000, other costs AED 10,000 → profit AED 10,000 → ROI = 10,000/40,000×100 = 25%. Different from ROAS; exact definitions vary by what costs are included.
LTV
Sum of customer value over time
Purchases of AED 500 + 500 + 1,000 = AED 2,000 LTV. SaaS: AED 300/mo × 20 months = AED 6,000. Sophisticated models add gross margin, churn and retention.