How to Read Your Data and Make Profitable Decisions
1. Actionable vs Vanity Metrics
Not all metrics matter equally. Some look impressive but don't tell you what to do. Others directly inform profitable decisions. Know the difference.
The Smart Report Difference
The Blockchain-Ads Smart Report is designed to surface actionable insights, not vanity metrics. Every data point answers a question: What's working? What should you scale? What should you cut?
Access Your Smart Report:
hub.blockchain-ads.com/reports
2. Key Metrics Explained
2.1 CPA — Cost Per Acquisition
The amount you spend to acquire one conversion (registration, deposit, purchase, etc.).
Formula: CPA = Total Spend ÷ Total Conversions
Example: $5,000 spend ÷ 100 conversions = $50 CPA
CPA is your primary efficiency metric. If your CPA is below your target, you're profitable. If it's above, you're losing money on each acquisition.
2.2 ROAS — Return on Ad Spend
The revenue generated for every dollar spent on advertising.
Formula: ROAS = Revenue ÷ Ad Spend
Example: $15,000 revenue ÷ $5,000 spend = 3.0x ROAS
A 3.0x ROAS means you're generating $3 for every $1 spent. Whether that's profitable depends on your margins—a 3x ROAS with 50% margins is very profitable; with 20% margins, you're barely breaking even.
ROAS vs CPA
Use CPA when you have fixed payouts (affiliate offers, lead gen). Use ROAS when revenue varies per conversion (e-commerce, deposits). Many advertisers track both.
2.3 Conversion Rate (CVR)
The percentage of clicks that result in conversions.
Formula: CVR = (Conversions ÷ Clicks) × 100
Example: (100 conversions ÷ 2,000 clicks) × 100 = 5% CVR
CVR tells you how well your landing page converts the traffic you're sending. Low CVR with good traffic usually means landing page issues. Low CVR across the board might mean audience mismatch.
2.4 CTR — Click-Through Rate
The percentage of impressions that result in clicks.
Formula: CTR = (Clicks ÷ Impressions) × 100
CTR measures creative effectiveness. A high CTR means your ads are compelling enough to generate clicks. But CTR alone doesn't indicate profitability—you need to track what happens after the click.
3. Reading the Smart Report
The Smart Report surfaces the insights that matter. Here's how to read it and what to look for.
3.1 Performance Overview
The top-level dashboard shows your aggregate performance across all campaigns:
- Total Spend: How much you've invested
- Total Conversions: How many acquisitions you've generated
- Overall CPA: Your blended cost per acquisition
- Total Revenue (if tracking): Money generated from conversions
- Overall ROAS (if tracking revenue): Return on your investment
Use the overview to assess overall health. Then drill down to find optimization opportunities.
3.2 Campaign-Level Breakdown
Compare performance across campaigns to identify winners and losers:
3.3 Creative Performance
See which creatives are driving results:
- CTR by creative: Which ads generate the most clicks
- CVR by creative: Which ads drive the most conversions
- CPA by creative: Which ads are most cost-efficient
- Spend distribution: Where budget is being allocated
Creative Insight
If one creative has 80% of conversions at your best CPA, that's your winner. Create variations of it and test against it. Don't waste budget on creatives with zero conversions after significant spend.
3.4 GEO Performance
Understand which regions are performing best:
- CPA by country/region: Where acquisitions are cheapest
- Volume by GEO: Where you're getting scale
- CVR by GEO: Where traffic quality is highest
- Revenue by GEO (if tracking): Where revenue is generated
GEO data helps you allocate budget to profitable regions and cut underperformers.
3.5 Audience Performance
Compare results across different audience segments:
- CPA by audience: Which segments convert most efficiently
- Volume by audience: Which segments have scale
- CVR by audience: Which segments have highest intent
Accessing Smart Reports
Navigate to hub.blockchain-ads.com/reports to access your Smart Report. Data updates regularly to show your latest performance.
4. The Scale / Optimize / Cut Framework
Every piece of data should lead to a decision. Use this framework to translate metrics into actions.
4.1 When to Scale
Signal: CPA below target + strong volume
What it means: You've found a profitable combination that's working at scale
Action: SCALE — Increase budget 20-50%, expand to similar audiences/GEOs
Signal: ROAS above target + room to grow
What it means: Campaign is generating strong returns with capacity for more
Action: SCALE — Increase daily budget, test additional creatives
4.2 When to Optimize
Signal: CPA slightly above target + good volume
What it means: Campaign is close to profitable but needs refinement
Action: OPTIMIZE — Test new creatives, adjust audiences, refine GEOs
Signal: High CTR + low CVR
What it means: Ads are compelling but landing page isn't converting
Action: OPTIMIZE — Test landing page variations, check offer alignment
Signal: Good CPA + low volume
What it means: Efficient but not scaling
Action: OPTIMIZE — Expand audiences, add GEOs, increase budget gradually
4.3 When to Cut
Signal: CPA 2x+ target after 7+ days
What it means: Campaign is significantly unprofitable with enough data to confirm
Action: CUT — Pause campaign, reallocate budget to winners
Signal: Zero conversions after significant spend
What it means: Fundamental mismatch between offer, audience, or creative
Action: CUT — Pause and diagnose before relaunching
Signal: Declining performance over 2+ weeks
What it means: Creative fatigue or audience saturation
Action: CUT OR REFRESH — Pause and launch with new creatives/audiences
The Sunk Cost Trap
Don't keep spending on losing campaigns hoping they'll turn around. If data clearly shows a campaign isn't working after sufficient volume, cut it. Reallocating that budget to winners will always outperform hoping losers improve.
5. Calculating True ROI
ROI (Return on Investment) tells you whether your advertising is actually making money. Here's how to calculate it properly.
5.1 Basic ROI Formula
Formula: ROI = ((Revenue - Cost) ÷ Cost) × 100
Example:
- Ad Spend: $10,000
- Revenue Generated: $35,000
- ROI = (($35,000 - $10,000) ÷ $10,000) × 100 = 250%
A 250% ROI means you made $2.50 profit for every $1 spent on ads.
5.2 ROI with Margins
For a more accurate picture, factor in your profit margins:
Formula: Net ROI = ((Revenue × Margin) - Ad Cost) ÷ Ad Cost × 100
Example:
- Ad Spend: $10,000
- Revenue Generated: $35,000
- Profit Margin: 40%
- Gross Profit: $35,000 × 0.40 = $14,000
- Net ROI = (($14,000 - $10,000) ÷ $10,000) × 100 = 40%
5.3 LTV-Based ROI
For subscription or repeat-purchase businesses, factor in customer lifetime value:
Formula: LTV ROI = ((LTV × Customers Acquired) - Ad Cost) ÷ Ad Cost × 100
Example:
- Ad Spend: $10,000
- Customers Acquired: 200
- Customer LTV: $150
- Total LTV: 200 × $150 = $30,000
- LTV ROI = (($30,000 - $10,000) ÷ $10,000) × 100 = 200%
Why LTV Matters
A $50 CPA might look expensive if first purchase is $40. But if customer LTV is $200, that $50 CPA is highly profitable. Always consider the full customer value, not just first transaction.
6. Weekly Reporting Routine
Consistent reporting prevents surprises and enables proactive optimization. Follow this routine:
Monday: Performance Review
- Pull Smart Report for previous 7 days
- Compare CPA to target—are you profitable?
- Identify top 3 and bottom 3 performers (campaigns, creatives, GEOs)
- Note any significant changes from previous week
Wednesday: Optimization Actions
- Scale: Increase budget on campaigns hitting targets
- Optimize: Test new creatives on marginal campaigns
- Cut: Pause clear underperformers
- Verify tracking is functioning correctly
Friday: Planning
- Document learnings from the week
- Plan creative tests for next week
- Identify expansion opportunities (new GEOs, audiences)
- Set goals for the following week
Monthly: Deep Analysis
- Full ROI calculation for the month
- LTV analysis if applicable
- Trend analysis: Is performance improving month-over-month?
- Budget reallocation across campaigns
- Strategic planning for next month
7. Common Reporting Mistakes
Next Steps
Data without action is just numbers. The Smart Report gives you the insights—now turn them into decisions.
Your action plan:
- Access your Smart Report at hub.blockchain-ads.com/reports
- Identify your top performer and bottom performer
- Apply the Scale/Optimize/Cut framework
- Calculate your current ROI
- Implement the weekly reporting routine
Need Help Analyzing Your Data?
Our team can help you interpret your reports and identify optimization opportunities.
Contact us at blockchain-ads.com
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