Which set of definitions correctly describes digital metrics CTR, conversion rate, and ROAS?

Explore the Promotional Mix in Marketing. Prepare with quizzes using multiple choice questions, each accompanied by explanations and study aids. Ace your exam with confidence!

Multiple Choice

Which set of definitions correctly describes digital metrics CTR, conversion rate, and ROAS?

Explanation:
These metrics are defined as specific ratios that describe ad engagement and campaign efficiency. CTR is clicks divided by impressions, showing what fraction of people who saw the ad actually clicked. Conversion rate is conversions divided by visits, indicating what portion of site visits result in the desired action. ROAS is revenue divided by advertising spend, measuring how much revenue is earned per dollar spent on ads. This combination matches the best choice because it uses standard definitions for each metric. The other formulations mix up the fractions or invert the ratios—CTR would be impressions over clicks, conversion rate would be visits over conversions, or ROAS would be spend over revenue—which don’t correctly describe the intended performance measures.

These metrics are defined as specific ratios that describe ad engagement and campaign efficiency. CTR is clicks divided by impressions, showing what fraction of people who saw the ad actually clicked. Conversion rate is conversions divided by visits, indicating what portion of site visits result in the desired action. ROAS is revenue divided by advertising spend, measuring how much revenue is earned per dollar spent on ads. This combination matches the best choice because it uses standard definitions for each metric. The other formulations mix up the fractions or invert the ratios—CTR would be impressions over clicks, conversion rate would be visits over conversions, or ROAS would be spend over revenue—which don’t correctly describe the intended performance measures.

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