Decision Metrics vs Execution Metrics
Decision Metrics (Strategy) tell you *where* to spend money (e.g., Incremental ROAS, CAC, Payback). Execution Metrics (Tactics) tell you *how* to optimize the creative (e.g., CTR, CPM, CPC). Confusing the two leads to executives micromanaging creative and media buyers ignoring business health.
The Short Version
The CEO looks at the compass; the pilot looks at the gauges.
Prerequisites
The CEO who asks about CTR
Your CEO asks 'Why is our CTR down this week?'
This is a distraction. CTR is an execution detail. The CEO should ask 'Why is our Contribution Margin down?'
How it works
Decision Metrics: Monthly/Quarterly cadence. Audience: Execs/CFO.
Execution Metrics: Daily/Weekly cadence. Audience: Media Buyers/Agencies.
Do not mix them in the same report.
Common Misconceptions
Making budget decisions based on CTR (Execution metric)
Evaluating a creative director based on ROAS (Decision metric)
Reporting everything to everyone
Related Terms
Frequently Asked Questions
QWhich is more important?
Neither. You cannot fly the plane without gauges (Execution), but you end up at the wrong airport without a compass (Decision).