👉 Ad math, or advertising metrics, is a set of quantitative measures used to evaluate the effectiveness and efficiency of advertising campaigns. Key metrics include Cost Per Click (CPC), which calculates the average cost paid for each click on an ad; Cost Per Thousand Impressions (CPM), which measures the cost to display an ad to 1,000 people; Cost Per Acquisition (CPA), which indicates the cost to acquire a specific customer or conversion; Return on Ad Spend (ROAS), which assesses the revenue generated for every dollar spent on ads; and Click-Through Rate (CTR), which shows the percentage of users who click on an ad after seeing it. These metrics help advertisers optimize their campaigns, allocate budgets effectively, and maximize return on investment by providing insights into the performance of different ad strategies and channels.
