When a marketing communications activity uses paid media advertising, which KPI is commonly used to measure the campaign's effectiveness?

When a marketing communications activity uses paid media advertising, which KPI is commonly used to measure the campaign's effectiveness?

• A. Cost per click
• B. Impressions
• C. Profits per customer
• D. Customer acquisition cost

Answer: (A)

In paid media, the most direct measure of campaign efficiency is cost per click. Since these ads are paid per user click, CPC tells you exactly how much you’re spending to generate each click, making it easy to compare performance across keywords, placements, and campaigns and to adjust bids and budgets for better efficiency. Impressions only indicate reach and don’t reflect engagement or results, profits per customer looks at profitability after sale rather than the ad’s efficiency, and customer acquisition cost covers all channels and activities, not just the paid media clicks. If the goal is actions beyond clicking, cost per conversion can be used, but for evaluating the paid media spend itself, cost per click is the standard.

In paid media, the most direct measure of campaign efficiency is cost per click. Since these ads are paid per user click, CPC tells you exactly how much you’re spending to generate each click, making it easy to compare performance across keywords, placements, and campaigns and to adjust bids and budgets for better efficiency. Impressions only indicate reach and don’t reflect engagement or results, profits per customer looks at profitability after sale rather than the ad’s efficiency, and customer acquisition cost covers all channels and activities, not just the paid media clicks. If the goal is actions beyond clicking, cost per conversion can be used, but for evaluating the paid media spend itself, cost per click is the standard.