What key metric is commonly used for value measurement in performance advertising?

In performance advertising, the key metric commonly used for value measurement is conversion rates. This metric is critical because it indicates the effectiveness of an advertising campaign in prompting desired actions from users, such as making a purchase or signing up for a newsletter. Higher conversion rates suggest that the advertising strategies employed are successfully persuading users to take these actions, thereby leading to greater ROI (return on investment).

Conversion rates provide a clear insight into how well the ads are performing in driving actual business results beyond simple engagement metrics. Unlike other metrics, such as click-through rates or traffic sources, which may show initial engagement or interest, conversion rates directly reflect the achievement of advertising goals, making them a vital metric for evaluating the success of performance ad campaigns.