The three that decide everything
Efficiency metrics tell you how a campaign is doing. These tell you whether the business can afford to grow. Benchmarks are for most e-commerce — margin and category shift them; your real numbers replace them here once a campaign is cleared for sharing.
The twelve numbers
Not a glossary of everything measurable — the twelve we actually run campaigns against. Each is reported only when it fits the objective. Formula and a healthy range for each; treat the range as a starting point, not a target.
- 01ROASReturn on ad spend
Per-platform return. Fast to read, but it takes credit for customers who'd have bought anyway — which is why MER sits next to it.
- 02MERMarketing efficiency ratio
Blended across every channel. The number a founder should actually watch — it can't be inflated by attribution settings.
- 03CACCustomer acquisition cost
Fully loaded — media, tools and the team, not just ad spend. Different from CPA, and usually higher.
- 04LTVLifetime value
Total margin a customer is expected to deliver. Sets the ceiling on what you can afford to spend to win one.
- 05LTV:CACLTV to CAC ratio
The one-line health check on the whole growth model. The single number we'd keep if we could only keep one.
- 06PaybackPayback period
How long cash is tied up per customer before they're in profit. Long payback caps how fast you can grow without funding.
- 07CPACost per acquisition
The core in-platform efficiency number. Has to stay under what a customer is worth on their first order, or the model breaks.
- 08CPMCost per mille
The price of a thousand impressions — the cost of attention on a given audience before anyone's clicked.
- 09CTRClick-through rate
How compelling the ad is. The fastest signal that a creative is working, or isn't.
- 10CVRConversion rate
Where ad quality meets landing-page quality. Below 1.5% is usually a page problem, not an ad one.
- 11AOVAverage order value
The number every efficiency target is measured against. Bundles, thresholds and post-purchase offers move it.
- 12Hook rateHook rate
Does the first frame stop the scroll. The biggest driver of video ad cost, and the cheapest thing to fix.
Channels
Meta
Facebook & Instagram — Advantage+ and manual, cold prospecting through to retention.
Search, Performance Max, Shopping, Display and Demand Gen.
YouTube
In-stream, Shorts and view-based campaigns.
How an account runs
- 01
Measurement
Pixel, Conversions API, GA4 and offline events — verified before a rupee is spent.
- 02
Structure
Clean campaign architecture built to scale, not to look busy in the dashboard.
- 03
Creative testing
Volume of hooks, concepts and formats — the biggest lever in paid social by a distance.
- 04
Scale
Winners get budget; the account structure stays stable while it grows.
- 05
Weekly review
A standing check against CPA / ROAS / MER, with next week's tests already planned.
