Advertising Performance
What to measure. Vanity metrics vs business outcomes. For detailed benchmarks, see the KPI Deep Dive.
Performance Categories
| Category | What It Measures | Traditional | AI-Era |
|---|---|---|---|
| Traffic | Reach and cost | CPM, CPC | AI-optimized bidding |
| Conversion | Action and cost | CVR, CPA | Predictive conversion |
| Revenue | Business impact | ROAS, LTV:CAC | Incrementality-proven |
| Integrity | Trust and waste | N/A | Invalid traffic detection, on-chain verification |
The Metric Hierarchy
Not all metrics are equal. Business outcomes sit at the top.
| Level | Metrics | What They Show |
|---|---|---|
| Business outcomes | Profit, market share | Did advertising create value? |
| Revenue metrics | ROAS, LTV:CAC, payback | Are we making money? |
| Conversion metrics | CVR, CPA, CPL | Are we efficient? |
| Engagement metrics | CTR, engagement rate | Are we relevant? |
| Reach metrics | Impressions, CPM | Are we visible? |
The trap: Optimizing reach without measuring conversion. High impressions with low conversion = wasted spend.
Key Benchmarks
Summary from full KPI analysis:
| Metric | 2025 Average | Trend |
|---|---|---|
| Google Ads CTR | 6.66% | Rising |
| Google Ads CPC | +12.88% YoY | Rising |
| Google Ads CVR | 7.52% | Stable |
| Average CPL | $70.11 | +5.13% YoY |
| Email ROI | $36-40 per $1 | Highest channel |
Warning: CPC is rising faster than conversion improvements. Efficiency matters more each year.
The Measurement Triad
Best-in-class measurement combines three approaches:
| Method | Purpose | Strength | Weakness |
|---|---|---|---|
| MMM | Strategic allocation | No tracking needed, privacy-safe | Slow, aggregate level |
| MTA | Tactical optimization | Journey mapping, real-time | Requires tracking, incomplete |
| Incrementality | Causal proof | Ground truth calibration | Expensive, limited scale |
Rule: Use all three. MMM for budget allocation. MTA for daily optimization. Incrementality for validating both.
Attribution Reality
Single-touch attribution lies. Most journeys involve multiple touchpoints.
| Model | What It Credits | Bias |
|---|---|---|
| First-touch | Top of funnel | Over-funds awareness |
| Last-touch | Bottom of funnel | Over-funds closing |
| Linear | Equal across all | Over-weights low-value |
| Time-decay | Recent touches | Under-values brand |
| W-shaped | First, middle, last | Requires sophistication |
Blockchain opportunity: Timestamped, immutable touchpoint records create transparency in attribution. Every interaction verified, not estimated.
DePIN Comparison
How DePIN data changes advertising metrics:
| Metric | Traditional Data Source | DePIN Data Source | Improvement |
|---|---|---|---|
| Location targeting | IP address, GPS estimate | GEODNET centimeter precision | 100x accuracy |
| Weather-based targeting | Regional forecast | WeatherXM hyperlocal | Real-time, block-level |
| Foot traffic | Estimated from samples | DePIN sensor network | Verified, continuous |
| Map freshness | Quarterly updates | Hivemapper real-time | Always current |
Opportunity Assessment
Scoring Dimensions
| Dimension | Weight | Advertising Score | Evidence |
|---|---|---|---|
| Market Attractiveness | 20% | 8.0 | $1T global ad spend |
| Technology Disruption | 20% | 7.0 | AI targeting, cookie death |
| VVFL Alignment | 25% | 6.0 | Loop works but duopoly dominant |
| Competitive Position | 20% | 5.5 | Meta/Google entrenched |
| Timing Risk | 15% | 6.0 | Privacy shift window |
Aggregate: 6.5/10 — Monitor Closely
Warning Signs
KPIs that indicate trouble:
| Pattern | Diagnosis | Fix |
|---|---|---|
| CTR rising, CVR falling | Wrong audience or misleading creative | Tighten targeting |
| CPC rising faster than revenue | Competitive pressure | Improve quality score, diversify |
| ROAS strong, LTV declining | Acquiring wrong customers | Shift from acquisition to retention |
| High reach, low engagement | Wasted impressions | Narrow audience, improve relevance |
| CPL dropping, pipeline flat | Lead quality problem | Score leads, not just count them |
Context
- Advertising KPIs — Full benchmark deep dive
- Principles — What truths guide measurement
- Players — Who's measured
- Performance — General performance principles