CLEARBYTE / 10

Comparisons

Compare definitions, tradeoffs and worked examples before choosing a metric or method.

CPM vs CPC: compare equivalent advertising costs

Effective CPM = CPC × CTR as a fraction × 1,000. A CPC of 0.20 at a 1% CTR corresponds to an effective CPM of 2.00. Equivalent cost does not imply equivalent traffic quality.

Advertising & growthComparisons

CTR vs conversion rate: keep the denominator visible

CTR measures clicks divided by impressions. Click-based conversion rate measures conversions divided by eligible clicks. With 100,000 impressions, 1,000 clicks and 40 conversions, CTR is 1%, click CVR is 4%, and impression-to-conversion rate is 0.04%.

Advertising & growthComparisons

ROAS vs ROI: revenue return is different from profit return

ROAS divides attributed revenue by ad spend. Here ROI divides revenue minus all included costs by those costs. Revenue of 1,200, ad spend of 200 and product costs of 600 gives 6× ROAS but 50% all-cost ROI.

Business arithmeticComparisons

Margin vs markup: one profit, two denominators

Margin divides profit by revenue; markup divides the same profit by cost. Buying for 80 and selling for 100 produces a 20% margin and a 25% markup.

Business arithmeticComparisons

Percent change vs percentage points in campaign reports

Percentage-point change subtracts two percentages. Relative percent change divides that difference by the original percentage. A rate rising from 2% to 3% gains 1 percentage point and increases by 50%.

Everyday numbersComparisons

Sequential discounts vs adding discount percentages

Sequential discounts multiply the remaining price fractions. A 20% discount followed by 10% off the reduced price gives a combined 28% discount, not 30%.

Business arithmeticComparisons

Average CPM vs impression-weighted CPM

Combined CPM is total money divided by total impressions, multiplied by 1,000. Segments with 1,000 impressions at 10 CPM and 99,000 impressions at 1 CPM have a combined CPM of 1.09, not the simple average of 5.50.

Advertising & growthComparisons

Request cache-hit rate vs byte cache-hit rate

Request hit rate weights each request equally; byte hit rate weights the response-body bytes. If 99 small 1 KB responses hit cache and one 1,000 KB response misses, request hit rate is 99% but byte hit rate is only 9.01%.

Web & developmentComparisons

Compression ratio vs percentage saved

Using the original-to-compressed convention, compression ratio is original bytes divided by compressed bytes. Reducing 100 KB to 25 KB gives 4:1 compression and 75% byte savings, not 400% savings.

Web & developmentComparisons

Break-even units vs break-even sales revenue

Break-even units divide fixed costs by contribution per unit. Break-even sales revenue divides fixed costs by the contribution-margin fraction. With fixed costs of 1,000, price 20 and variable cost 12, break-even is 125 units or 2,500 in sales.

Business arithmeticComparisons