KPIs for Ecommerce Ads on Shopee, Lazada & TikTok: What to Measure Beyond ROAS

When it comes to KPIs for ecommerce ads, should you look beyond ROAS or ROI? This is a major challenge for digital marketers on platforms like Shopee, Lazada, and TikTok. It can be tough to decide which metrics to track—too few, and you won’t get the full picture; too many, and you’ll lose focus.

Many who follow our content might hear us talk a lot about ROAS (Return on Ad Spend) and ROI. We mention them so often that you might think they’re the only metrics that matter. In reality, there are several other KPIs you should be watching. The right ones depend on your business and specific goals. Here, we’ll share the KPIs we actually use in our daily work, beyond just ROAS and ROI.

A quick note: The names of these KPIs can vary slightly between platforms, and some platforms might not offer certain metrics directly.

The Fundamentals: Clicks, CPC, and CTR

You might think these are basic metrics, but do they still matter? For us, the answer is a definite yes. Let’s quickly break down what they mean in simple terms:

• Clicks: The total number of clicks on your ad.
• CPC (Cost per Click): The price you pay for each click. The formula is simply: Cost / Clicks = CPC.
• CTR (Click-Through Rate): The percentage of people who saw your ad and clicked on it. The formula is: (Clicks / Impressions) * 100 = CTR (%).

So, what can these three KPIs tell you? The most straightforward insight is the cost per click for a product or product group. You can track the average CPC over time, for example, during major sales events like D-Day, Mid-Month, or Payday sales. During these periods, CPC is often higher than on normal days. This means that even if you increase your budget, a high CPC might result in a similar number of clicks as a regular day.

CTR, on the other hand, helps you gauge how appealing your ad is. A high CTR often indicates a product that grabs attention from the start—perhaps due to a great product image, an attractive starting price, or a compelling title. However, you should always analyze CTR alongside your conversion rate (purchase rate). If your CTR is high but your conversion rate is low, it’s time to investigate. What could be the issue? Maybe customers clicked but found out there was no free shipping coupon, the product wasn’t part of a promotion, or the specific variant they wanted was out of stock. CTR can be a great indicator of these potential problems.

How Interested Are Customers? Look at Add to Cart

Add to Cart is a KPI that not all platforms provide, but if it’s available, it’s worth checking. Think of it as the second checkpoint in the customer journey. After a customer clicks on your product, what do they do next? Adding an item to the cart is a strong signal of purchase intent.

They might not buy it immediately. A high number of “Add to Cart” actions but low sales, especially on a normal day, often means customers are interested but are waiting for a promotion. This could be a D-Day, Mid-Month, or Payday sale. If you’ve joined a campaign and see a lot of items in carts but no sales, double-check that you’ve correctly opted into the promotion. We’ve personally seen cases where a simple mistake of forgetting to join a campaign led to zero sales, despite high customer interest.

To Increase Purchase Value, Focus on Orders, Cost per Order, Unit Sold, and AOV

• Orders: The total number of transactions.
• Cost per Order: The advertising cost for each transaction. The formula is: Cost / Orders = Cost per Order.
• Unit Sold: The total number of individual items sold.
• AOV (Average Order Value): The average amount spent per order. The formula is: GMV / Orders = AOV.

Orders and Unit Sold might seem similar, but they are very different. Let’s imagine a customer buys three of your products (Product A, B, and C) in a single transaction. In this case, you would have 1 Order but 3 Units Sold.

We group these four KPIs together because they help you understand how many items customers are buying in each transaction. If you notice a significant difference between your number of Orders and Units Sold, it’s an opportunity. To increase the number of units sold per order, you could introduce promotions like “Bundle Deals” or even consider creating multi-packs of your products.

As for AOV, this metric shows the average value of each order. If your AOV is low, you need to find ways to increase it. Strategies similar to the ones above, like creating product bundles or “buy two, get a discount” offers, can help. You could also look at your brand positioning. Is there an opportunity to launch a new, more premium product with a special formula or enhanced features? These strategies can lead to a higher AOV as you start selling higher-priced items.

GMV and Revenue

Finally, you can’t ignore GMV (Gross Merchandise Value) and Revenue. Different platforms might use different terms, but they both essentially represent your income. While tracking revenue is standard practice, be careful. A high GMV doesn’t always mean your advertising is successful. You need to look at it in context with other metrics. For example, if your GMV is high but your ROAS is low, something is wrong. Why is the return so low? Did you join the right campaigns? Are you offering free shipping?

Furthermore, GMV depends heavily on your product price. A low-priced product that achieves the same GMV as a high-priced product is performing exceptionally well. When you consider this alongside a strong ROAS, it might be a clear signal to increase the ad budget for that product.

What KPIs for Ecommerce Ads Should You Use Beyond ROAS?

All the metrics discussed here can be added to your advertising KPI dashboard. The ones you choose to focus on will depend on your products and your company’s specific goals. However, all of these are crucial KPIs for anyone managing Ecommerce Advertising in Thailand on platforms like Shopee, Lazada, and TikTok. Feel free to adapt and apply them to ensure your ad campaigns are running at peak performance.

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Originally in Thai. Translated to English with the help of Gemini.