Digital Marketing ROI
Performance metrics for modern growth hackers.
Marketing Theory & Growth Models
What is ROAS vs Marketing ROI?
ROAS (Return on Ad Spend) measures gross revenue earned for every dollar spent on advertising. Marketing ROI accounts for other costs like agency fees, content creation, and software. A 4:1 ROAS is generally the benchmark for a healthy campaign.
CPC to CPA: The Profit Gap
The relationship between Cost Per Click (CPC) and Cost Per Acquisition (CPA) is determined entirely by your conversion rate. If you pay $1 per click and convert 1% of visitors, your CPA is $100. Improving conversion rate is often more effective than lowering CPC.
Conversion Rate Optimization (CRO)
Even a 1% increase in conversion rate can double your profit without increasing your ad budget. Factors influencing CRO include site speed, copy clarity, mobile responsiveness, and trust signals.
Value of an Email Subscriber
Email subscribers are "owned" assets. Unlike social media followers, you can reach them without paying an algorithm. Calculating the annual revenue per subscriber helps determine how much you can afford to pay for lead generation.
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