Term
Formula
Threshold → action
Basis
01
Hook rate
3s plays ÷ impressions
Cold-feed medians sit near 22%. Under 20%, rewrite the opening.
Industry band
02
Hold rate
15s plays ÷ 3s plays
State the denominator before quoting it. Sources disagree only because some measure at 15s and some at 75% completion.
Definition
03
Creative hit rate
winners ÷ new creatives shipped
4–8% is normal. Plan volume around it, not against it.
Industry band
04
Production rate
1 new ad ÷ $3,000 monthly spend
A rate, not a slogan. $30,000 is ten ads a month. $300,000 is a hundred.
Our rate
05
Format mix
statics ÷ total live ads
Direct-to-consumer accounts commonly run near 65% static. A static is 30–60 minutes of work; a video is 4–8 hours.
Industry band
06
Frequency
impressions ÷ reach
Past 3.0 on prospecting, retire the ad.
Our threshold
07
CTR
clicks ÷ impressions
Under 1%, or down 20% week over week, retire the ad.
Our threshold
08
Learning phase
50 optimisation events ÷ ad set ÷ week
A platform requirement, not a target. Below it, the ad set gets merged, not retargeted.
Platform
09
Live ad floor
active ads ÷ ad set
Meta's own guidance is ten or more. Advantage+ Shopping wants fifteen to twenty.
Platform
10
Event Match Quality
Meta's 1–10 server-event match score
Floor 7.0. Target 8.0 to 9.0. You can read this yourself in Events Manager.
Platform
11
Signal capture
matched events ÷ actual conversions
Browser pixel alone sees roughly two thirds. Pixel plus CAPI on one shared event_id sees roughly 95%.
Industry band
12
iROAS
incremental revenue ÷ spend
Commonly 30–60% below platform-reported ROAS. Platforms over-attribute to themselves.
Industry band
13
MER
total revenue ÷ total marketing spend
The strategic number. ROAS is the daily tactical one.
Definition
14
Blended CAC
total marketing spend ÷ all new customers
The honest number. Paid CAC is the flattering one.
Definition
15
Contribution margin
revenue − COGS − shipping − processing − returns
We use a 15% floor per order to fund fixed costs before scaling spend.
Our threshold
16
Gross-profit LTV : CAC
gross-profit LTV ÷ blended CAC
3:1 minimum. Revenue LTV flatters every account ever built.
Our threshold
17
CAC payback
days to recover blended CAC
Days, not months. Under twelve months non-subscription, under six subscription.
Our threshold