## One-Sheeter for Analyst Exercise

*Ad metrics*

**Impressions**: the number of times your ad is viewed, regardless of shopper interaction
**Clicks**: a consumer clicking on an ad
**Cost**: the cost accrued from clicks on ads
**Orders**: a consumer purchase, after an ad click
**Units**: the number of products purchased
**Sales**: revenue generated from purchases after an ad click
**Click-through-rate (CTR)**: Clicks divided by impressions; the ratio of consumers who click on your
ad to the number of consumers who viewed it.
**Cost per click (CPCs)**: Cost divided by click; the average price of each click.
**Conversion rate (CVR)**: Orders divided by clicks; the ratio of conversions (orders) to traffic to the
product page.
**Average order value (AOV)**: Sales divided by orders; the average value of each order.
**Sales per click (SPC)**: Sales divided by clicks; the average value of each click.
**ACoS**: Ad cost divided by ad sales (the inverse of ROAS); an efficiency metric.

**_Keyword categorization – Brand v. Non-Brand_**
Brand and non-brand, or unbranded, are the two major segments into which we categorize keywords.
Keywords containing the brand name, including misspellings, are considered “brand”, while all other
keywords, including competitor names, are categorized as “non-brand,” “unbranded” or “generic.”

Performance, specifically efficiency (ACoS), between the two categories can vary notably. Brand terms
carry a higher efficiency (lower ACoS), since the user has already determined what they are looking to
purchase and who they are looking to purchase from, and therefore have a higher likelihood of
conversion. Non-brand terms signify the user has not yet determined the brand they want to buy from,
are usually not as far along in the journey to purchase, therefore non-brand terms carry a lower
conversion rate. Non-brand traffic constitutes a majority of search (impression and click) volume for
accounts. Competitor search terms, still considered non-brand, carry the lowest conversion rate.
Competitor search terms are an effort to change the mind of the consumer, who has already identified a
preferred brand, in order to acquire market share. While competitor search terms are usually more
inefficient than even average non-brand performance, they serve as a tool to grow market share through
acquisition of new customers.

While brand terms carry sales volume at a lower ad cost, available volume of searches is lower than non-
brand and can cannibalize traffic arriving to purchase through organic methods.