Understand CPC, ROAS, CPM, CTR, CPA & estimate your ad revenue.
You can’t improve what you don’t measure. These metrics tell you if your ads are profitable—or wasting money.
What it is: The percentage of people who click your ad after seeing it.
Formula: (Clicks ÷ Impressions) × 100
What’s good? MENA: 1–3% | US/EU: 2–5%
Why it matters: Low CTR = your ad isn’t compelling. High CTR = you’re reaching the right audience.
What it is: How much you pay each time someone clicks your ad.
Formula: Total Ad Spend ÷ Clicks
What’s good? Depends on your profit. If you earn $10 per sale, CPC under $2 is great.
Why it matters: High CPC with low sales = losing money.
What it is: Cost per 1,000 ad impressions (common in brand awareness campaigns).
Formula: (Total Ad Spend ÷ Impressions) × 1,000
What’s good? MENA: $1–$5 | US/EU: $5–$15
Why it matters: Useful for comparing visibility cost across platforms.
What it is: How much you pay to get one conversion (sale, signup, download).
Formula: Total Ad Spend ÷ Conversions
What’s good? Must be lower than your profit per customer. If profit = $50, CPA < $30 is safe.
Why it matters: This is the #1 metric for profitability.
What it is: How much revenue you earn for every $1 spent on ads.
Formula: Revenue from Ads ÷ Ad Spend
What’s good? ROAS > 2x = profitable. ROAS > 4x = excellent.
Why it matters: The ultimate measure of ad success.