Introduction

Return on Ad Spend (ROAS) is a widely recognized metric in digital marketing. It provides a clear picture of the revenue generated in relation to advertising costs. However, focusing exclusively on ROAS can be limiting. To achieve long-term growth and sustained performance, businesses must evaluate additional KPIs that offer deeper insights into campaign efficiency, user behavior, and customer value.

Here are five essential KPIs—beyond ROAS—that every marketing team should monitor.

1. Cost Per Acquisition (CPA)

Definition:
CPA measures the average cost required to acquire a new customer or lead through paid efforts.

Why it matters:
While ROAS focuses on revenue, CPA highlights the actual cost-efficiency of your campaigns. Tracking CPA allows marketers to assess whether acquisition costs align with budget goals and overall profitability.

Best Practice:
Analyze CPA across different audience segments and platforms to identify your most cost-effective acquisition channels.

2. Click-Through Rate (CTR)

Definition:
CTR indicates the percentage of people who clicked on your ad or content after seeing it.

Why it matters:
A strong CTR is a direct reflection of how relevant and engaging your ad creative and messaging are to your target audience. Higher CTRs often lead to improved ad placements and reduced costs on platforms like Google Ads and Meta Ads.

Best Practice:
Monitor CTR consistently to gauge creative performance and refine your messaging for stronger audience engagement.

3. Customer Lifetime Value (LTV)

Definition:
LTV estimates the total revenue a business can expect from a customer throughout the duration of their relationship.

Why it matters:
Understanding LTV helps businesses make informed decisions about how much they can invest in acquiring customers. A higher LTV enables greater flexibility in setting CPA targets and scaling marketing efforts sustainably.

Best Practice:
Use LTV insights to forecast revenue, segment customer value, and design loyalty-focused marketing strategies.

4. Engagement Rate

Definition:
Engagement Rate measures how actively users interact with your content—through likes, shares, comments, saves, or clicks.

Why it matters:
Engagement is a strong indicator of content relevance and brand resonance. High engagement often correlates with stronger brand affinity and improved campaign performance, especially on social platforms.

Best Practice:
Track engagement across both paid and organic content to identify creative that resonates and informs future content development.

5. Conversion Rate (CVR)

Definition:
CVR represents the percentage of users who complete a desired action, such as making a purchase or submitting a form, after interacting with your ad or website.

Why it matters:
A high conversion rate reflects effective targeting, optimized user experience, and clear value propositions. It directly affects your ability to generate returns from your marketing investments.

Best Practice:
Evaluate CVR at different funnel stages to identify and address potential drop-off points in the user journey.

Conclusion

While ROAS is a valuable metric, it does not provide a complete view of marketing performance. By monitoring a diverse set of KPIs—including CPA, CTR, LTV, Engagement Rate, and CVR—businesses can gain deeper insights into campaign effectiveness and make data-driven decisions that support sustainable growth.

At Digital Made Agency, we specialize in crafting marketing strategies built on meaningful metrics and performance insights. If you’re ready to elevate your reporting and results, let’s start a conversation.