Definition
Auction overlap measures how often your ads compete in the same auctions as another advertiser. It can explain CPM/CPC pressure and ranking dynamics.
How to use it
- Use overlap and outranking share to understand competitive pressure.
- Do not chase impression share blindly; use marginal ROAS and profit constraints.
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "Auction Overlap" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Marginal ROAS: how to scale ads with diminishing returns) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- CPL to CAC Calculator: Convert cost per lead (CPL) into CAC using lead-to-customer rate (and compute targets).
- Break-even CVR Calculator: Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.
- Click-through Conversion Rate Calculator: Calculate click-through conversion rate (click-to-conversion CVR) and estimate required clicks for target conversions.
- ROAS Calculator: Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
- Break-even ROAS Calculator: Estimate the break-even ROAS based on contribution margin assumptions.
Guides
- Marginal ROAS: how to scale ads with diminishing returns: A practical guide to marginal ROAS: why average ROAS misleads at scale, how diminishing returns work, and how to pick a profit-maximizing spend level.
- Paid ads bidding & budgeting hub: max CPC, target CPA, and break-even targets: A practical hub for bidding and budgeting: compute max CPC from CVR and margin, set target CPA using LTV, and use break-even CTR/CVR/CPM targets to guide creative and landing optimizations.