A KPI, or Key Performance Indicator, is a measurement that will directly affect your marketing objectives. They can be identified by examining your strategic business goals, and deciding how to measure your progress towards those goals. Every business has unique KPIs so be sure you are measuring the most meaningful metrics to make more educated marketing decisions.
KPIs sometimes correspond to individual metrics, but more often, they are calculated from a series of metrics you are tracking. One common example of a KPI for advertising is ROAS (return on ad spend). ROAS is a measurement that evaluates gross revenue generated for every dollar spent. The math is simple if you have the tracking data you need. ROAS = revenue from ad campaign, minus the cost of the ad campaign, divided by the cost of the ad campaign.
