A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate the success of a specific activity or overall business objective.
In advertising and marketing, KPIs are essential for translating broad business goals into actionable, trackable targets for campaigns. They provide an objective basis for measuring performance, justifying budgets, and making data-driven decisions. By monitoring KPIs like Return on Ad Spend (ROAS), Cost Per Acquisition (CPA), or Customer Lifetime Value (CLV), marketers can identify which strategies are working, optimize underperforming assets, and demonstrate the direct impact of their efforts on revenue and growth. Without clear KPIs, it is impossible to gauge the true effectiveness or ROI of advertising initiatives.
