Value, like beauty, is usually in the eye of the beholder.
In online advertising, the relative value of various campaign metrics has been subject to much debate. For brand marketers, well-designed banners shown to targeted consumers on high quality sites are perceived to have high value.
Similarly, clicks and high click through rates (CTRs) that drive targeted consumers to the advertiser’s site are often seen as very valuable to brand marketers.
However, in the world of performance display and search retargeting, where high return on advertising spend (ROAS) and/or return on investment (ROI) is the goal, savvy marketers don’t pay as much attention to impression or click based metrics. Instead, performance marketers tend to value the actions their campaigns drive, and the resulting cost per action (CPA).
The “actions” upon which CPAs are calculated vary widely, depending on the advertiser’s business and goals.
Performance marketers look to drive actions that include email sign-ups, travel bookings, white paper downloads, test drive appointments, and/or the sale of products and services.