Definition
A simplified ad funnel: impressions -> clicks -> conversions. Use CPM/CTR/CVR to diagnose where efficiency is lost.
How to use it
- CPM drives cost per impression.
- CTR turns impressions into visits.
- CVR turns visits into outcomes; combine with AOV and margin for profit.
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 "Click-to-conversion Funnel" 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.
- Document common pitfalls so the metric doesn't get gamed.
Where to use this on MetricKit
Calculators
- ROI Calculator: Calculate Return on Investment (ROI) for a campaign or project.
- Incrementality Lift Calculator: Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
- Marginal ROAS Calculator: Estimate diminishing returns and find the profit-maximizing ad spend from a simple response curve.
- Target CPA from LTV Calculator: Translate LTV and contribution margin into a target CPA (and break-even CPA) for paid acquisition.
- MER Calculator: Calculate MER (Marketing Efficiency Ratio / blended ROAS) and estimate break-even and target MER from margin assumptions.
Guides
- Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit): A practical guide to the paid ads funnel: how CPM, CTR, and CVR drive CPC, CPA, ROAS, and profit - with formulas and common pitfalls.
- CTR (Click-Through Rate): definition, formula, and how to improve: CTR explained: what click-through rate is, how to calculate it, and how to improve CTR without sacrificing conversion quality.
- CVR (Conversion Rate): definition, formula, and how to calculate: CVR explained: what conversion rate means, how to calculate it correctly, and how to improve it without sacrificing scale.
- CPC (Cost Per Click): definition, formula, and how to calculate: CPC explained: what cost per click means, how to calculate it, and how CPC connects to CTR, CVR, and CPA.
- CPM (Cost Per 1,000 Impressions): definition, formula, and how to calculate: CPM explained: what cost per mille means, how to calculate it, and how CPM affects CPC and CPA.