Ad Campaign KPI Tree

Acquisition > Ad Campaign > KPI Tree

Summary

This report page shows the performance of the ad campaigns and identifies the key metrics influencing their overall sales, helping users quickly understand what is driving ROAS and areas requiring attention.

Questions the report answers

• How are my ad campaigns performing in terms of generating revenue and orders?
• What are the key metrics driving ROAS, and how are they performing compared to the previous year?
• Where should I focus my efforts to improve ad performance (e.g., increasing clicks, optimizing conversion rates, reducing costs)?

How to read the report

The KPI Tree structure as seen in the report helps visualize the relationships between the key performance indicators (KPIs) and how they influence the core business metric.

Understanding the structure of the KPI Tree

• Return on Ad Spend (ROAS) is the top-level KPI that reflects the effectiveness of your ad spend by comparing the revenue generated from ads to the cost of ads. If this metric is positive and growing, your campaigns are performing well; if it’s negative or declining, it indicates underperforming campaigns.
• ROAS is driven by the total Revenue from Ads and the total Ad Costs. If Revenue from Ads is increasing while Ad Costs remain stable or decrease, ROAS will improve. Conversely, if ad costs increase without a proportional rise in revenue, ROAS will decline.
• Revenue from Ads is further influenced by the Number of Orders from Ads and the Average Order Value (AOV) from Ads
• Each of these high-level metrics provides a fundamental view of how the ads are performing.
• Number of Clicks on your ads is a key driver of the Number of Orders from Ads. Clicks on your ads are influenced by Number of Impression and Click-through Rate (CTR)
• Key cost metrics include Cost per 1000 Impressions (CPM) and Cost per Click (CPC), which measure the efficiency of your ad spend.
• The low-level metrics are the storytelling metrics help you understand why behind the performance of the high-level metric. For example, if the Revenue from Ads is down compared to the prior year, the KPI Tree helps determine whether the decline is due to a decrease in the Number of Orders from Ads, Average Order Value from Ads, or both. The tree allows for further analysis by breaking down these high-level metrics into more detailed insights, offering a top-down view of the business.

Understanding the KPI Card

• Metric Title: Displayed at the top left corner which defines what the KPI is measuring. Examples include “Revenue from Ads”, “Number of Orders from Ads”, “Average Order Value (AOV) from Ads”, etc.
• Time frame: Just below the metric title you’ll see a time filter label providing you context for the period being analyzed in the KPI.
• Actual Value: The most prominent figure on the card is the Actual Value of the KPI for the selected period.
• YoY Variance: On the right side of the KPI card you’ll see the absolute YoY Variance and YoY Variance % for the metric on the first row.
• Color Coding and Icons of the Title
  • Green: Indicates a positive change — increase the metric value.
  • Red: Indicates a negative change — decrease in the metric value.
  • Yellow: Indicates no change in the metric value
• Tooltip: A tooltip appears when hovering over the KPI card, providing a detailed view of the data. It includes a table and a 13-week trend chart that compares the current period with the previous one for the selected metric.

Glossary

Average Order Value from Ads

The average revenue per order generated from all advertising platforms. It is calculated by dividing the total ad revenue by the total ad orders.

Ads Cost

The total spend on advertisements across all advertising platforms. It is calculated by summing the costs associated with each ad platform.

Clicks

The total number of clicks generated from all advertising platforms. It is calculated by summing the clicks across all ad platforms.

Clicks to Order Conversion

The percentage of ad clicks that result in an order across all advertising platforms. It is calculated by dividing the total number of ad orders by the total number of ad clicks.

Click through Rate (CTR)

The percentage of ad impressions that resulted in clicks across all advertising platforms. It is calculated by dividing the total number of ad clicks by the total number of ad impressions.

Conversion Rate (Google Analytics)

The percentage of website sessions tracked by Google Analytics (GA) that result in a purchase. It is calculated by dividing the number of orders by the number of sessions.

Cost per 1000 Impressions (CPM)

The average cost per thousand ad impressions across all advertising platforms. It is calculated by dividing the total ad cost by the total number of ad impressions and then multiplying by 1,000.

Cost per Click (CPC)

The average cost incurred for each click on advertisements across all advertising platforms. It is calculated by dividing the total ad cost by the total number of ad clicks.

Impressions

The total number of times advertisements were displayed to users across all advertising platforms. It is calculated by summing the impressions from all ad platforms.

Number of Orders from Ads

The total number of orders generated from all advertising platforms. It is calculated by summing the orders across all ad platforms.

Revenue from Ads

The total revenue generated from all advertising platforms. It is calculated by summing the order values across all ad platforms.

Return on Ad Spend (ROAS)

The revenue generated for every dollar spent on advertisements across all advertising platforms. It is calculated by dividing the total ad revenue by the total ad cost.