How to Use Ads

What do the different ad performance metrics mean?

1. Impression 

Impression measures the number of times your ads are seen by logged-in shoppers. The higher the impression, the wider the reach of your ads to potential shoppers. For Shop Ads, this metric is also called Shop Impression.  

1. Clicks

Clicks measure the number of times logged-in shoppers click on your ads after seeing them. For Shop Ads, this metric is also called Shop Clicks. 

1. Click-Through-Rate (CTR)

CTR measures the percentage of times shoppers click on your ads after seeing them. For Shop Ads, this metric is also called Shop CTR. 

1. For example, if there are 100 impressions for your ad and 10 clicks, your CTR is 10%. A higher CTR is better as it reflects higher interest in your ad

1. Orders

Orders measures the number of orders placed by shoppers on the advertised product and other products from your shop within 7 days of an ad click. 

1. One order can contain multiple quantities of your products
2. All orders are attributed to the last-clicked ad

1. Items Sold

Items Sold measures the total quantity of the advertised product and other products purchased from your shop within 7 days of an ad click. 

1. One order can contain multiple items sold. For example, if you are advertising a shirt and a shopper buys 3 shirts at once, the Order will be 1 and Items Sold will be 3
2. All items sold are attributed to the last-clicked ad

1. Gross Merchandise Value (GMV)

GMV measures the total amount of money generated by shoppers from the purchase of the advertised product and other products from your shop within 7 days of an ad click. 

1. All sales are attributed to the last-clicked ad

1. Expense

Expense measures the total amount of money spent on your ads. Make sure your expense is within your advertising budget.

1. Return on Investment (ROI)

ROI indicates the return from your ad spend, by measuring the revenue generated by the ad from the sales of your shop's products relative to every dollar spent on your ad. 

1. ROI = GMV ÷ Expense
2. For example, if the GMV brought in by your ad is $3000 and your ad’s expense is $600, your ROI is 5

1. Cost-Income-Ratio (CIR)

CIR measures the percentage of your ad spend relative to the revenue generated by your ad from the sales of your shop's products. 

1. CIR = Expense ÷ GMV x 100%
2. For example, if your ad’s expense is $600 and the GMV brought in by your ad is $3000, your CIR is 20%

1. Direct Orders

Direct Orders measures the number of orders placed on the advertised product within 7 days of an ad click. When a shopper submits an order, it may contain multiple quantities of your advertised product.

1. For Shop Ads, the number of orders includes products clicked on within 1 day and purchased within 7 days

1. Direct Items Sold

Direct Items Sold measures the total quantity of the advertised product purchased within 7 days of an ad click. 

1. One order can contain multiple items sold. For example, if you are advertising a shirt and a shopper buys 3 shirts at once, the Direct Order will be 1 and Direct Items Sold will be 3
2. For Shop Ads, the total quantity of products includes products clicked on within 1 day and purchased within 7 days

1. Direct Gross Merchandise Value (GMV)

Direct GMV measures the total amount of money generated by shoppers from the purchase of the advertised product within 7 days of ad click. 

1. For Shop Ads, the total product sales include products clicked on within 1 day and purchased within 7 days

1. Direct Return on Investment (ROI)

Direct ROI measures the revenue generated by the ad from the sales of the advertised product relative to every dollar spent on your ad. 

1. Direct ROI = Direct GMV ÷ Expense
2. For example, if the Direct GMV brought in by your ad is $3000 and your ad’s expense is $600, your Direct ROI is 5
3. For Shop Ads, revenue from the purchase of products clicked on within 1 day and purchased within 7 days will be used for Direct ROI calculation

1. Direct Cost-Income-Ratio (CIR)

Direct CIR measures the percentage of your ad spend relative to the revenue generated by your ad from the sales of the advertised product. 

1. CIR = Expense ÷ Direct GMV x 100%
2. For example, if your ad’s expense is $600 and the Direct GMV brought in by your ad is $3000, your Direct CIR is 20%
3. For Shop Ads, revenue from the purchase of products clicked on within 1 day and purchased within 7 days will be used for Direct CIR calculation

What is Average Ranking for Keyword Ads?

1. Average Ranking

Average Ranking refers to the average ad ranking amongst other ads for the chosen keyword in the search results page, not the average ranking amongst all search results. 

If your ad ranking is 8, your ad will appear at the 8th ad position from the top of the search results page, not at the 8th search result position. A smaller number ranking means that your ad will get better placement, closer to the top of the search results. For example, ranking of 1 is better than ranking of 2, 3 and so on. 

What are Product Impression, Clicks and CTR for Shop Ads?

1. Product Impression

Product Impression refers to the number of times products in your shop page are seen by logged-in shoppers after clicking your Shop Ad. 

For example, if a shopper clicks on your Shop Ad and scrolls down to see 10 products in your shop’s page before they exit, you will have 10 Product Impressions. A higher Product Impression indicates that shoppers explore your shop more after clicking your Shop Ad. 

1. Product Clicks

Product Clicks refer to the number of times the products in your shop page are clicked by logged-in shoppers after clicking your Shop Ad. 

For example, if a shopper clicks on your Shop Ad, then clicks on 4 products in your shop page, you’ll get 1 Shop Click and 4 Product Clicks. As such, your Product Click count may be higher than your Shop Click count, as an interested shopper may click on multiple products after clicking once on your Shop Ad.

1. Product CTR

Product CTR measures the percentage of times shoppers click on your products upon seeing them in your shop page, after they click on your Shop Ad. 

1. Product CTR = Product Clicks ÷ Product Impressions
2. For example, if you have 100 Product Impressions and 20 Product Clicks, your Product CTR is 20%. High Product CTR indicates that the products on your shop page are attractive to shoppers. 

Where can I check my ads' performance?

Check your ads performance via your Shopee app or by logging into Seller Center on your browser. 

1. Via Shopee app

1. Tap on your "Me" tab

2. Tap on “My Shop” at the top left of the screen

3. Scroll down and tap on "Shopee Ads"

4. Depending on which ad type you are looking for, tap on "Keyword Ads" or "Targeting Ads

5. Tap on any product to see the product level ads performance data. You can also toggle the desired time period for the ads performance.

1. Via Seller Centre on your browser

After logging into your Seller Centre, click "Shopee Ads" on the left navigation bar.

When and how often should I review my ad data?

1. When running your ads for the first time, wait for at least 2 weeks before downloading the report to get sufficient and robust data. Minimal adjustment is advised for the first 2 weeks for new ads.

2. Check your ad performance at least once a day after 2 weeks. You can check more frequently if your ads are not performing to your expectations and optimise your ads.

3. Download and save your data regularly. The Export Data function allows you to access data up to the last 90 days.

Related articles

Optimising Keyword Ads Performance

How to Use Targeting Ads Right

Optimising Shop Ads for Success