Effectiveness vs. efficiency – how to distinguish them?

[sumaiyakhatun26]

Performance is about whether your ad is producing results , while efficiency measures how cost-effective it is to achieve those results . The difference is that performance focuses on the result itself (e.g. conversions), while efficiency considers the cost of achieving those results (e.g. customer acquisition cost).

Example: A campaign may generate a lot of sales (high performance), but if each india rcs data sale costs more than it brings in profit, then the campaign will not be effective.

What are advertising performance metrics?
Performance metrics help you measure whether a campaign is achieving its goals—whether it’s generating sales, leads, or other desired actions. Some of the most important performance metrics include:

Number of conversions – how many people took the desired action, e.g. made a purchase or signed up for a webinar.
CTR (Click-Through Rate) – a click-through rate that shows how many people clicked on an ad in relation to the number of its displays.
Conversion rate – the percentage of people who completed the desired action relative to the number of page visits.
Engagement – ​​measures social media interactions such as likes, comments, and shares.
Reach and impressions – how many people had contact with your ad.
Each of these metrics shows whether a campaign is delivering the expected results, but to assess whether it’s profitable, you also need to look at efficiency.