Mastering Marketing KPIs: Metrics, Tools, and Strategies to Accelerate Growth
Defining marketing success is challenging because not every conversion or sale can necessarily be mapped back to a specific campaign.
So, how do you justify your marketing budget for the next year? That’s where marketing KPIs come in.
Marketing KPIs are metrics you track to measure the results of all the work you put into planning and running your marketing campaigns. Recording the numbers provides the hard data that you need to optimize and improve your campaigns. It also gives you the backup to justify marketing spend and even request more budget from your managers.
This article explores 20+ different KPIs for marketing and when and why to use them. You dont have to track every one of them. Just pick the top few that align with what success looks like for your company and start monitoring them for improved marketing direction and progress!
What are Marketing KPIs?
A key performance indicator (KPI) numerically tracks your organization’s progress in a specific operational aspect. KPIs exist for every department, from finance to HR, and mathematically quantify progress towards specific objectives. For example, time to hire tracks the average number of days it takes to fill a vacant position, and gross profit calculates the percentage of revenue remaining after all operational costs.
Similarly, KPIs for marketing track a whole range of data points related to marketing efforts, like new site visitors from a Google Ad, marketing costs per customer, and social media engagement. The data is collected and calculated periodically over time, often with the goal of achieving a target value range within a pre-defined interval. Which KPIs you track depends on your audience, the channels they are at, and your organization’s marketing objectives and business goals.
Why KPIs for marketing matter
44% of businesses cannot quantify marketing impact on the bottom line. Marketing KPIs allow you to make data-driven decisions and allocate resources more effectively so every dollar spent on marketing delivers measurable value. For example, you can prioritize investments in channels that bring in the most qualified leads, or design ad campaigns that truly resonate with your audience.
Another key advantage is identifying areas for improvement. KPIs reveal bottlenecks or underperforming campaign aspects. For example, if your click-through rates are high but conversion rates are low, it may indicate a problem with your landing page or offer. Such insights allow you to refine your strategies without relying on guesswork.
Most importantly, KPIs create accountability and alignment within your marketing team. When everyone understands the key metrics that define success, it becomes easier to work toward common goals. Regularly reviewing performance data keeps teams focused, encourages transparency, and ensures efforts align with broader organizational objectives.
Key Marketing KPIs and How to Measure Them
Marketing KPIs are typically channel- and campaign-specific, but several advanced KPIs can also be used to assess the company’s overall marketing efforts.
Website KPIs
For most brands, the website is the heart of the business – acting as a central hub for customer connection and transactions. It can also be one of the primary data sources for your KPIs. If your marketing campaigns aim to maximize website reach, consider the following KPIs.
Website traffic
Website traffic is measured as the number of unique site visitors in a given period. You can track traffic for individual pages or the website as a whole. Various factors, like site performance, design, and overall search engine ranking could impact website traffic. Hence, it is best to look at the traffic of specific landing pages that relate directly to your marketing efforts.
Engagement rate
Engagement rate refers to the percentage of website traffic that engages with your page in some way, such as watching a video, clicking a link, or signing up for a newsletter. This KPI is a direct indicator of how well your team understands your audience. Your engagement rate will increase if your marketing campaigns are targeting the right audience with the right content.
Time on site
Time on site measures the average time end users spend on your website page. Increasing this KPI boosts search engine rankings, helping more people find you on Google and increasing organic traffic.
This KPI is very relevant to content marketers, as publishing high-quality site copy increases time on site. However, high-quality content should be supported by a clutter-free, visually appealing design and easy site navigation. Advanced technologies like personalized content feeds or embedded AR/VR experiences (like this virtual make-up trial by Maybelline) can also boost this KPI.
Conversion rate
Conversion rate measures the percentage of site visitors who take a desired action or “convert” on the site. The action varies by business goal and can include anything from completing a purchase to signing up for a newsletter, filling out a contact form, or downloading an e-book. The conversion rate differs from the engagement rate in that any site action will boost the engagement rate, but only specific (pre-determined conversion actions) will raise the conversion rate.
One in three marketing leaders prioritizes conversion rates as their top KPI because it helps map sales to existing marketing efforts. For example, the conversion rate can tell you how many products were purchased or how many sales leads were generated thanks to your efforts! Read more about how to increase conversion rates on your site.
Measuring website KPIs
In order to capture and track relevant website data for KPIs, you need to use third-party tools. Google Analytics is one of the most versatile tools for monitoring website KPIs. It provides a centralized platform with customizable dashboards, real-time reporting, and historical data analysis. You get a detailed breakdown of user demographics, behavior, and traffic sources. Google Analytics also lets you set conversion goals and track the end-to-end customer journey from Google Ads and other platforms to the final conversion.
Social Media KPIs
Most brands spend nearly 30% of their ad budget on social media advertising. If you plan to increase your social presence, consider the following KPIs.
Followers
Irrespective of your target channel, your first focus should be increasing your page followers and subscribers. A loyal following on social media goes beyond numbers; it reflects a dedicated audience that your marketing team can directly interact with. Your followers will more likely convert into customers and advocate for your brand. Their positive interactions create the social proof necessary to gain new customer trust. More importantly, you can run A/B testing or request feedback directly to fine-tune your strategy.
Engagement rate
The likes, shares, and comments on your posts and social ads measure engagement rate. It is calculated as a percentage of impressions, another metric measuring how often your content is displayed to users. For example, if you create an Instagram post and it shows up in member feed views 1000 times, your impressions for the post are 1000. However, if you get 100 likes and 50 comments, your engagement rate is 15% (150/1000*100)
Monitoring this metric helps you understand what types of content perform best, allowing you to refine your strategy and focus on posts that drive conversations and build connections.
Click-through rate
Click-through rate (CTR) measures the percentage of users who click on a link in your social media posts, typically leading to your website or landing page. Analyzing CTR across platforms helps you identify where your audience is most receptive and strategically allocate your social media marketing resources.
Attention-grabbing headlines and clear calls to action improve CTR, but remember that search engines (and consequently SEO efforts) can bring in over 1,000% more traffic than social media.
Brand mentions
This metric measures the number of times independent third parties like other users, influencers, or media outlets “tag” your brand on social media. It indicates your visibility and reputation but may not always be positive! Brand reputation and sales can tank if you are constantly being mentioned in critical posts. For example, the beer brand Bud Light lost 20-25% of sales in the US after a boycott campaign took off on social media. It is essential to actively engage with mentions, whether to nurture relationships or resolve issues.
Measuring social media KPIs
Various tools like Hootsuite, Buffer, and Sprout Social allow you to manage all social channels from a single place and collect the data you need to track KPIs. You can plan your posts and schedule content while monitoring cross-channel post-performance. Analyze audience sentiment, monitor trends, and adjust strategies from a single, centralized platform.
Email Marketing KPIs
The average return on investment (ROI) from email marketing is a whopping 4200%! Planning to capitalize on your email marketing efforts? Consider the following KPIs.
Open rate
The email open rate measures the percentage of recipients who open your email. Nearly half of all email recipients choose to open an email based on the subject line, so the open rate indicates both subject line effectiveness and sender reputation.
Create concise, personalized, and intriguing subject lines to improve your open rate. Use the recipient’s name and reference past brand interactions so the email feels more relevant. Timing also matters – send emails at optimal times for your audience. Maintain a clean email list by removing inactive subscribers to reach more engaged users.
Click-through rate
Click-through rate (CTR) measures the percentage of recipients who click on a link within your email. To improve CTR, you need compelling email copy that delivers on the promise of your subject line. Visually appealing design elements like buttons, images, and videos capture attention and make the email more interactive. Use A/B testing to test different layouts and wording and strategically improve your email’s CTR.
Conversion rate
Conversion rate tracks the percentage of email recipients who complete a specific action, such as making a purchase or signing up for a service, after reading your email. To track email conversions, you must integrate your email marketing platform with tools like Google Analytics and monitor the complete buyer journey. Ensure your email content aligns with the landing page experience to create an effective email marketing funnel. Time-based incentives, like discounts or exclusive content, can motivate recipients to act. You often have to send multiple emails as reminders and nurture the relationship before you get a conversion.
Measuring email marketing KPIs
Platforms like Mailchimp, HubSpot, and Constant Contact provide the technology to manage email campaigns and collect KPI data. You get user-friendly reporting tools to monitor campaign performance and segment your mailing list into multiple categories. Some tools also combine email analytics with broader CRM capabilities for detailed CTR and conversion tracking.
Paid Advertising KPIs
You can boost brand awareness by 80% with digital advertising – running ads across search engines, social media, and native ad networks like Outbrain.
Most platforms require you to target ads to specific keywords or placements and define your daily budget a.k.a “bid.” For example, let’s say you are running ads on Google for the keyword “florist in Austin.” You write your ad and then configure the amount you are willing to spend to run it. Given you are not the only florist running ads for that specific keyword or ad placement, Google determines how many users to show your ad to based on your budget. A higher bid means your ad will be shown to more Google visitors than your competitors, increasing the likelihood of a customer discovering it.
While ad delivery is automated and easy to configure, choosing the right bid amount, ad content, and campaign length can be challenging. The KPIs below ensure that you spend every ad dollar efficiently.
Cost per click
Cost per click (CPC) measures the cost incurred every time a customer clicks on your ad.
CPC = Total Cost of the Campaign ÷ Total Number of Clicks
For example, if you spend $500 on a campaign that generates 1,000 clicks, your CPC is $0.50.
Targeting appropriate keywords and improving ad quality increases clicks and reduces CPC. However, this needs to be complemented by the right bidding strategy. Our take? Don’t run digital ads on any platform without understanding the nuances of their bidding system. Otherwise, you’ll just end up throwing good money away.
Cost per acquisition
Everyone who clicks on your ad is not going to make a purchase. Cost per acquisition (CPA) measures the cost of converting a single customer through the ad. Conversion could be a purchase, sign-up, download, or anything else you decide.
CPA = Total Ad Spend ÷ Total Number of Conversions
For example, if you spend $1,000 and achieve 50 conversions, your CPA is $20.
High-performing campaigns align ad content closely with audience needs while ensuring that the path to conversion is smooth and engaging.
However, it is important to remember that as you scale your advertising, you must target a broader audience, which typically increases CPA. To scale sustainably, build an audience over many months so your CPA doesn’t become so high that it is no longer profitable.
Return on ad spend
Instead of counting individual conversions, Return on Ad Spend (ROAS) looks at how much revenue you generate for every dollar spent on ads.
ROAS = Total Revenue Generated from Ads ÷ Total Ad Spend
For instance, if you generate $5,000 in revenue from a campaign that costs $1,000, your ROAS is 5:1, meaning you earn $5 for every $1 spent.
To improve ROAS, promote high-value products and services through your ads. Accurate customer data, like interests and purchasing patterns, also helps refine ad strategies for better profitability. Explore Outbrain Brainpower to discover current topics, keywords, and devices your audiences are engaging with and target them appropriately to maximize ROAS.
Advanced marketing KPIs
Consider the following KPIs when assessing marketing contribution to overall business growth.
Customer lifetime value
Customer lifetime Value (CLTV) measures the total revenue a business can expect from a single customer over their entire relationship.
CLTV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan
For example, if a customer spends $50 per purchase, makes four purchases a year, and remains loyal for five years, their CLTV is $1,000
This metric assesses the profitability of the existing customer base and guides decisions on marketing spend and retention strategies. Low CLTV may signal the need for improved customer experience or loyalty programs. Consider developing upselling, cross-selling, and subscription strategies.
Customer acquisition cost
Customer acquisition cost (CAC) measures how much it costs to acquire a new customer.
CAC = Total Marketing and Sales Spend ÷ Number of New Customers Acquired
For example, if you spend $10,000 on marketing and sales and acquire 100 new customers, your CAC is $100.
Reducing CAC is vital for ensuring sustainable growth and maximizing profits. You can achieve this through targeted marketing campaigns, improved lead nurturing, and optimizing the sales funnel to reduce drop-offs.
Customer churn rate
This marketing KPI represents the percentage of customers who stop doing business with your company during a specific period.
Churn Rate = (Customers Lost During a Period ÷ Total Customers at the Start of the Period) × 100
For example, if you start the month with 1,000 customers and lose 50, your churn rate is 5%.
A high churn rate indicates dissatisfaction, competition, or gaps in your offerings.
Net promoter score
Net promoter score (NPS) measures customer satisfaction and loyalty by asking customers: “How likely are you to recommend our company to others?” Respondents rate their likelihood on a scale of 0 to 10, with scores categorized as:
- Promoters (9–10)
- Passives (7–8)
- Detractors (0–6).
NPS is then calculated as:
NPS = (% of Promoters – % of Detractors)
For example, if 60% of respondents are promoters and 20% are detractors, your NPS is 40.
NPS provides actionable insights into how your business is perceived and helps identify areas for strengthening customer loyalty. Use the feedback to tweak messaging, ad content, and campaign design.
How to Set Effective Marketing KPIs
Effective marketing KPIs align closely with your overarching business objectives. Instead of overwhelming your analytics team, select a few key metrics that directly influence your business goals and have the highest potential to impact success. For example, if the business wants to increase revenue, your marketing KPIs might focus on metrics like ROAS, conversion rates, and CPA. But if you are aiming to increase brand awareness, you could focus on social media KPIs and engagement rate. Regularly revisiting and refining your KPIs ensures they remain relevant to your evolving business priorities and market conditions.
Some more tips:
Use the SMART goal framework
Set KPIs that are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of setting a vague goal like “increase website traffic,” define it as “achieve a 25% increase in organic website traffic within six months.” SMART KPIs provide a clear timeline for evaluation and help maintain focus and accountability. Visual aids, such as goal-setting charts or progress trackers, make KPIs more engaging and can motivate your team to success.
Set data-driven benchmarks
Establishing effective KPIs for marketing requires a solid understanding of your baseline performance. Use historical data to set realistic benchmarks and identify improvement areas. Tools like Google Analytics can provide insights into past performance, making it easier to define ambitious yet achievable goals.
Don’t let KPI targets replace the actual goal
Over-focusing on KPIs can drive wrong behaviors in the team, resulting in high KPI scores that don’t align with business objectives.
For example, consider two similar marketing teams running a blogging campaign. Team A focuses on the organic traffic KPI but with the specific goal of “brand awareness with the target audience.” Team B skips goal setting and only emphasizes a numerical increase in the organic traffic KPI.
The result? Team B focuses on any organic traffic since, in their eyes, success = more visits. They target max traffic keywords without considering the context. The resulting traffic has a very low engagement rate, despite their high KPI scores.
In contrast, Team A keeps its goal and target audience top-of-mind. They target context-sensitive keywords and drive more qualified and relevant traffic, ultimately boosting conversions and sales. Despite lower KPI values, they are more successful.
Track Your Marketing the Right Way
Marketing KPIs allow you to quantify marketing efforts and make data-driven decisions, keeping profits in mind. You can track several KPIs based on your channel, campaign, and overall business goals. Align them with your marketing strategy for the year to set measurable and achievable goals. However, don’t overemphasize KPIs to the detriment of the business!
