If you’re a founder, marketer, or anyone striving to scale your startup, you’ve probably heard the phrase, “What gets measured gets managed.” Well, in the fast-paced world of digital marketing, that couldn’t be more true.

Key Performance Indicators (KPIs) are like the dashboard of your marketing trajectory they help you understand what’s working, what’s not, and where to steer next. But with so many metrics flying around, which ones should you actually focus on?

Let’s break down 22 digital performance marketing basic terms & KPIs every startup or company should track. I'll keep it simple, and practical, so you can walk away ready to put these into action!

Let’s break it down into basic terms to know and KPIs to track so that it's easier to digest.

Basic Terms to Know

1. Impressions

Impressions are simply how many times your ad was shown, whether it was clicked or not.

Why It Matters: It’s a key metric for building brand awareness.

2. Reach

Reach is the number of unique users who see your content.

Why It Matters: It helps measure the spread of your content.

3. Search Engine Ranking

Search Engine Ranking is your website’s position on search engine results pages (SERPs).

Why It Matters: Higher rankings bring more visibility and organic traffic.

4. Organic Traffic

Organic Traffic is the number of visitors who land on your site through unpaid search results.

Why It Matters: A strong SEO strategy leads to higher organic traffic which means greater eyeballs on your business for FREE or without any ad spends. This will also include people just searching your business name or service and landing on your website. However, you will have to put efforts and investments in content & backlinking & other SEO optimisations.

5. Paid Traffic

Paid Traffic is the number of visitors who come to your site through paid ads.

Why It Matters: It shows the effectiveness of your paid campaigns. Google Ads, LinkedIn Ads, Bing Ads or social media platforms like Meta & TikTok, allow you to generate visibility, traffic, and leads in a short time. By optimising metrics like CPC, CPA, and ROAS, you can maximise your ad spend and achieve measurable growth efficiently. Paid ads, when paired with a solid organic strategy, can be a game-changer for scaling your business.

6. Lead Generation or Demand Generation

Lead Generation is the process of attracting and converting potential customers. You will use different social media and search engine channels to run performance ads and optimise the key metrics to generate more qualified business.

Why It Matters: It directly drives opportunities for sales growth.

7. Lead Nurturing

Lead Nurturing involves building relationships with potential customers throughout their journey.

Why It Matters: It improves conversion rates and customer retention.

KPIs to Track

8. Click-Through Rate (CTR)

CTR is your ad's first impression on steroids—it shows how many people clicked on your ad versus how many saw it.

Why It Matters: Higher CTR indicates better audience relevance. Higher CTR = higher relevance to your audience = better ad performance.

Formula: CTR = (Clicks ÷ Impressions) × 100

9. Conversion Rate (CR)

Think of CR as the ultimate goal. It measures the percentage of visitors who actually take that desired action- whether it’s a signup, a purchase, or downloading your app.

Why It Matters: It directly ties to ROI, after all, no conversions, no revenue!

Formula: CR = (Conversions ÷ Visitors) × 100

10. Cost Per Click (CPC)

This tells you how much you’re paying every time someone clicks on your ad.

Why It Matters: Balancing CPC with CR ensures you're not overspending.

Formula: CPC = Total Ad Spend ÷ Total Clicks

11. Cost Per Acquisition (CPA)

The holy grail of startup metrics- how much does it cost to acquire a new customer?

Why It Matters: A high CPA can tank profitability. Aim for a balance of cost and quality.

Formula: CPA = Total Campaign Cost ÷ Conversions

12. Return on Investment (ROI)

This classic metric tells you if your marketing dollars are paying off.

Why It Matters: It’s the “is it worth it?” question answered in numbers. It evaluates if your marketing efforts are worth the cost.

Formula: ROI = (Net Profit ÷ Cost of Investment) × 100

13. Return on Ad Spend (ROAS)

Think of ROAS as ROI's laser-focused cousin, specific to ads. It shows how much revenue you earned for every dollar spent on advertising.

Why It Matters: It’s a precise measure of ad efficiency.

Formula: ROAS = Revenue from Ads ÷ Ad Spend

14. Engagement Rate

Engagement Rate tracks like, shares and comments - basically, how much people are interacting with your content.

Why It Matters: High engagement = relevant, interesting content.

Formula: Engagement Rate = (Total Engagements ÷ Impressions) × 100

15. Bounce Rate

This is the percentage of people who land on your site and leave without taking any action.

Why It Matters: A high bounce rate signals poor user experience or irrelevant content.

Formula: Bounce Rate = (Single Page Visits ÷ Total Visits) × 100

16. Average Session Duration

This tracks the average time users spend on your site.

Why It Matters: More time on site usually indicates higher engagement.

Formula: Average Session Duration = Total Session Time ÷ Total Sessions

17. Pages Per Session

Pages Per Session measures the average number of pages viewed per visit.

Why It Matters: It indicates how compelling your site is.

Formula: Pages Per Session = Total Page Views ÷ Total Sessions

18. Customer Lifetime Value (CLV)

CLV measures the total revenue a customer generates over their lifetime with your business.

Why It Matters: It helps decide how much to invest in customer acquisition.

Formula: CLV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan

19. Customer Acquisition Cost (CAC)

CAC measures the cost of acquiring a new customer.

Why It Matters: Lower CAC with higher CLV indicates sustainable growth.

Formula: CAC = Total Marketing Costs ÷ Total New Customers

20. Email Open Rate

Email Open Rate measures the percentage of recipients who open your email.

Why It Matters: It reflects the effectiveness of your subject lines.

Formula: Email Open Rate = (Emails Opened ÷ Emails Delivered) × 100

21. Email Click Rate

Email Click Rate measures the percentage of recipients who clicked a link in your email.

Why It Matters: It tracks how engaging your email content is.

Formula: Email Click Rate = (Clicks ÷ Emails Delivered) × 100

22. Social Media Engagement

Social Media Engagement measures interactions on your posts, such as likes, shares, and comments.

Why It Matters: It reflects how well your content connects with your audience.

Formula: Engagement Rate = (Total Engagements ÷ Followers) × 100

KPIs and basic digital marketing terms aren’t just jargon—they’re the heartbeat of your marketing strategy. By understanding and tracking these metrics, you can make smarter decisions, optimise your campaigns, and scale your business effectively.

Which KPI or term do you track the most?

If you’re looking to implement a digital growth strategy for your startup or business, book a free consultation with our Growth Advisors at GrowthClics. We’ll help you achieve your goals with expert guidance, hassle-free support, and efficient budget management - focusing on smart growth rather than simply increasing your ad spend.