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Metrics & formulas — from zero
In one sentence
Every metric is a count, a rate (count ÷ count) or a cost (spend ÷ count). Name the type and the formula follows.
CPMspend ÷ impressions × 1,000CTRclicks ÷ impressionsCPLspend ÷ leadsROASrevenue ÷ spend
Type 1
Count
- Impressions, reach
- Clicks, landing-page clicks
- Leads, conversions, sends
Type 2
Rate = count ÷ count
- CTR = clicks ÷ impressions
- CVR = leads ÷ clicks
- Frequency = impressions ÷ reach
Type 3
Cost = spend ÷ count
- CPM = spend ÷ impressions × 1,000
- CPC = spend ÷ clicks
- CPL = spend ÷ leads
Every ad metric is either a count (impressions, clicks, leads), a rate (count ÷ count), or a cost (spend ÷ count). If you can name which of the three it is, you can derive the formula.
| Metric | Formula | Reads as | Typical LinkedIn B2B |
|---|---|---|---|
| Impressions | count of times an ad rendered | volume | — |
| Reach | unique members who saw the ad | breadth | — |
| Frequency | Impressions ÷ Reach | times each person saw it (per ad set — true frequency is higher) | 2–4 / week healthy; fatigue above ~5 |
| Penetration | Reach ÷ Audience size | share of target actually reached | <30% after a month = bid too low or audience too big |
| CPM | Spend ÷ Impressions × 1,000 | price of attention | €30–80 (median ≈ $65 across 464 accounts) |
| CTR | Clicks ÷ Impressions × 100 | creative relevance | 0.4–0.7% single image; use landing-page CTR for truth |
| Clicks to landing page | count | real traffic (excludes reactions, "see more", Page clicks) | often only 10–40% of "clicks" on TLAs |
| CPC | Spend ÷ Clicks | price of a click | €6–18 cold; LP-CPC often 2–4× reported CPC |
| Engagement rate | (Clicks + reactions + comments + shares + follows) ÷ Impressions | social resonance | 0.5–2%; TLAs higher |
| Dwell time | seconds the ad was ≥50% in view | attention quality | higher for TLAs and video |
| View (video) | 2 s+ with ≥50% in view (LinkedIn definition) | — | — |
| View rate / VTR | Views ÷ Impressions | hook strength | 25–35% |
| Completion rate | Completions (97%) ÷ Views | creative quality | 10–20% on 30 s |
| CPV | Spend ÷ Views | — | €0.05–0.20 |
| Sends / Opens / Open rate | Open rate = Opens ÷ Sends | subject + sender quality | 30–50% |
| CTOR | Clicks ÷ Opens | message body quality | 3–5% message ads |
| CPS | Spend ÷ Sends | — | €0.40–0.80 |
| Conversion rate (CVR) | Conversions ÷ Clicks (or ÷ LP clicks) | landing page quality | 2–5% content, 0.5–2% demo |
| Lead form completion rate | Leads ÷ Form opens | form friction | 10–15% feed; 30–40%+ inbox |
| CPL | Spend ÷ Leads | price of a lead | €60–200 content; €250–500 demo |
| CPA / Cost per conversion | Spend ÷ Conversions | — | defined per client |
| MQL → SQL rate | SQLs ÷ MQLs | lead quality | 20–40% |
| Cost per SQL / opportunity | Spend ÷ SQLs | what sales cares about | — |
| CAC | Total S&M spend ÷ New customers | acquisition cost | — |
| ROAS | Attributed revenue ÷ Ad spend | € back per € spent | >3× is the usual bar; B2B judges on pipeline |
| ROI | (Revenue − Cost) ÷ Cost | — | — |
| Pipeline ROAS | Influenced pipeline ÷ Spend | early signal before revenue closes | 5–10× |
| LTV / CLV | ACV × gross margin × avg years | customer worth | LTV:CAC ≥ 3:1 |
| Payback period | CAC ÷ monthly gross profit per customer | months to recover CAC | < 12–18 months SaaS |
| SOV / ESOV | Share of voice; Excess SOV = SOV − Share of market | brand growth predictor | ESOV > 0 → growth (see frameworks) |
| Brand lift | % exposed who recall ÷ % control who recall − 1 | awareness impact | survey-based |
Funnel maths clients love: Impressions × CTR = Clicks · Clicks × CVR = Leads · Leads × MQL→SQL = Opportunities · Opps × win rate × ACV = Revenue. Work backwards from a revenue target to find the required budget: Budget = (Revenue ÷ ACV ÷ win rate ÷ SQL rate ÷ CVR ÷ CTR) × CPM ÷ 1,000.
Remember
- Frequency = impressions ÷ reach; penetration = reach ÷ audience size. Frequency above 5 means fatigue.
- ROAS is revenue ÷ spend; ROI is (revenue − cost) ÷ cost — the exam loves the difference.
- Funnel maths: impressions × CTR = clicks; clicks × CVR = leads; leads × SQL rate = opportunities; × win rate × ACV = revenue.