Performance Marketing and Key KPIs for Internet Marketing
Posted: Wed Sep 24, 2025 3:16 pm
Performance marketing is the measurement of online marketing results using numbers. For example, we calculate the cost per order (CPO) in rubles—let's say CPO = 500 rubles—which is pure performance. There are numerous similar metrics; they are essentially KPIs (performance indicators) for advertising and, ultimately, for business. Businesses need to know how much they spend on advertising and the specific number of applications, calls, and, most importantly, sales they generate for that money.
In general, entrepreneurs should understand that all marketing is calculated and clearly demonstrated in specific metrics, and internet marketing agencies must provide reports, analyze all the resulting figures, and present them to the client.
Small businesses are often financially uneducated and act on instinct: "We've seen some results, so let's move on." "We ordered contextual denmark telemarketing database advertising and it seems to be working well, so let's keep working on it or even increase the budget." "SEO promotion is going well, but at some point there's a decline, mostly due to the incompetence of pseudo-specialists." Analyzing this is quite simple, and my personal opinion is that entrepreneurs should understand the basics of internet marketing themselves in order to:
don't waste your money on useless or unprofitable advertising
Don't risk your business as a whole and remember the common situation that online advertising is the only source of clients
don't waste money on the appearance of work by "specialists"
Why I came to this conclusion
Business and its processes must be built scientifically. The foundation of business is counting your money. You need to be able to count it at any level, including in advertising.
As an entrepreneur myself, I understand the importance of understanding all the fundamental processes involved in money. For example, it's essential to understand the basics of accounting—you don't need to know the finer details, but you do need to fully grasp the essence of how it works and the results.
So, let's get back to performance marketing.
It all comes down to sales funnels. There's online advertising, there's a website, and then there's the final sales.
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Each step can be assessed by its own indicators.
Internet advertising
Let's take contextual advertising for simplicity. What are its key metrics?
CPC (cost per click) – this is self-explanatory; the price depends on competition and CTR (which, by the way, is often overlooked).
CTR (click-through rate). The higher the CTR, the more profitable it is for search engines to sell impressions (CPM model).
That's basically it. Incidentally, entrepreneurs often think they set up advertising and that's it – sales will follow. But that's not true. The goal of advertising is to bring interested users to your website... and then, what's more, they'll see how you work with them. How you manage your business processes, work with clients, and manage projects – this is what influences inquiries, calls, and sales.
In general, entrepreneurs should understand that all marketing is calculated and clearly demonstrated in specific metrics, and internet marketing agencies must provide reports, analyze all the resulting figures, and present them to the client.
Small businesses are often financially uneducated and act on instinct: "We've seen some results, so let's move on." "We ordered contextual denmark telemarketing database advertising and it seems to be working well, so let's keep working on it or even increase the budget." "SEO promotion is going well, but at some point there's a decline, mostly due to the incompetence of pseudo-specialists." Analyzing this is quite simple, and my personal opinion is that entrepreneurs should understand the basics of internet marketing themselves in order to:
don't waste your money on useless or unprofitable advertising
Don't risk your business as a whole and remember the common situation that online advertising is the only source of clients
don't waste money on the appearance of work by "specialists"
Why I came to this conclusion
Business and its processes must be built scientifically. The foundation of business is counting your money. You need to be able to count it at any level, including in advertising.
As an entrepreneur myself, I understand the importance of understanding all the fundamental processes involved in money. For example, it's essential to understand the basics of accounting—you don't need to know the finer details, but you do need to fully grasp the essence of how it works and the results.
So, let's get back to performance marketing.
It all comes down to sales funnels. There's online advertising, there's a website, and then there's the final sales.
Subscribe to the FireSEO Telegram channel and stay up-to-date with new articles and posts on Telegram.
Each step can be assessed by its own indicators.
Internet advertising
Let's take contextual advertising for simplicity. What are its key metrics?
CPC (cost per click) – this is self-explanatory; the price depends on competition and CTR (which, by the way, is often overlooked).
CTR (click-through rate). The higher the CTR, the more profitable it is for search engines to sell impressions (CPM model).
That's basically it. Incidentally, entrepreneurs often think they set up advertising and that's it – sales will follow. But that's not true. The goal of advertising is to bring interested users to your website... and then, what's more, they'll see how you work with them. How you manage your business processes, work with clients, and manage projects – this is what influences inquiries, calls, and sales.