Your boss wants a portfolio of metrics to track the company's ability to increase sales. Which metrics would you recommend?

Your boss wants a portfolio of metrics to track the company's ability to increase sales. Which metrics would you recommend?

• A. Impressions, Clicks, CTR
• B. Conversions, Conversion Rate, Cost Per Acquisition
• C. Revenue, ROI, CPA
• D. CPC, CPM, Impressions

Answer: (B)

The key idea is to use metrics that tie advertising activity directly to sales and cost efficiency. Conversions capture the actual sales or other valuable actions you’ve defined, giving a clear measure of results. Conversion rate shows how effectively traffic becomes those conversions, letting you optimize ads, keywords, and landing pages to improve efficiency. Cost per acquisition tells you how much each sale costs, which is essential for profitability and scaling—you can set CPA targets and adjust bidding to stay within a desired cost. Together, these three provide a direct, actionable view of sales performance and the cost to acquire customers. Impressions, CTR, CPC/CPM focus on exposure or cost per interaction rather than actual sales, and revenue/ROI depend on margins and may be less immediately controllable through ad campaigns.

The key idea is to use metrics that tie advertising activity directly to sales and cost efficiency. Conversions capture the actual sales or other valuable actions you’ve defined, giving a clear measure of results. Conversion rate shows how effectively traffic becomes those conversions, letting you optimize ads, keywords, and landing pages to improve efficiency. Cost per acquisition tells you how much each sale costs, which is essential for profitability and scaling—you can set CPA targets and adjust bidding to stay within a desired cost. Together, these three provide a direct, actionable view of sales performance and the cost to acquire customers. Impressions, CTR, CPC/CPM focus on exposure or cost per interaction rather than actual sales, and revenue/ROI depend on margins and may be less immediately controllable through ad campaigns.