Core Paid Media Formulas
- CTR = Clicks ÷ Impressions × 100
- CPC = Spend ÷ Clicks
- CPM = Spend ÷ Impressions × 1000
- CPA = Spend ÷ Conversions
- ROAS = (Conversions × AOV) ÷ Spend
Benchmarks by Channel
| Channel | Typical CTR | Typical CPC |
|---|---|---|
| Google Search | 2–5% | $1–$3 |
| Google Display | 0.3–0.7% | $0.50–$1.50 |
| Facebook feed | 1–2% | $0.50–$2 |
| LinkedIn feed | 0.4–0.8% | $4–$12 |
| TikTok feed | 0.8–1.5% | $0.40–$1.20 |
Diagnostic Use
- High impressions, low CTR — Creative/audience mismatch. Refresh creatives.
- High CTR, high CPC — Bidding competition. Improve ad rank via quality score.
- High CPC, low CPA — Fine — the funnel converts. Scale spend.
- Low CPC, high CPA — Landing page problem, not ad problem.
What NOT to Optimise For
Do not chase low CPC. Cheap clicks that don't convert are expensive clicks in disguise. Optimise for CPA or ROAS, not CPC.