All references

Glossary entry

DTC performance metrics — CTR, CVR, AOV, ROAS, LTV

Performance marketing

The five most-cited metrics in DTC paid media plus four engagement metrics (hook rate, 3-second hold, completion rate, comments rate). Each measures a different part of the funnel.

Every bullet in a teardown report ends with a metric tag — the analyst is calling which performance number the observation would move. This page explains the most-cited metrics so you can read each tag with intent.

Engagement metrics — top of the funnel

Hook Rate

Definition. Percentage of impressions that produce a 3-second view.

What it measures. Did the opening earn attention? A hook rate below ~30% on Meta usually means the visual or audio in the first second isn't strong enough.

Common synonyms. "3-second view rate." Often used interchangeably with Thumbstop Ratio.

Thumbstop Ratio

Definition. 3-second view rate ÷ impressions. See the full primer.

What it measures. Whether the first frame stops the scroll. Industry shorthand for hook strength.

3-Second Hold

Definition. Percentage of 3-second viewers who reach the end of the ad.

What it measures. How well the body sustains attention after the hook earns it. Hook gets them in; hold keeps them in.

Video Completion Rate

Definition. Percentage of impressions where the viewer reaches 95-100% of the runtime.

What it measures. Total attention captured by the ad. Strong completion correlates with brand recall but not always with CTR.

Comments Rate

Definition. Comments ÷ impressions.

What it measures. How emotionally activating the creative is. High comments often indicates either strong love or strong friction — context tells you which.

Conversion metrics — bottom of the funnel

CTR (Click-Through Rate)

Definition. Clicks ÷ impressions.

What it measures. Whether the body + CTA earn intent — does the viewer think the destination is worth the tap?

Range. DTC paid social typical: 1-3%. Above 4% on cold is exceptional.

CVR (Conversion Rate)

Definition. Conversions ÷ clicks.

What it measures. Whether the landing page + offer convert the intent the ad created. Low CVR with high CTR means the ad over-promises relative to the LP.

Range. DTC typical: 1-4% on cold, 4-12% on retargeting.

Economics metrics — what you're optimizing for

AOV (Average Order Value)

Definition. Total revenue ÷ orders.

What it measures. How much each customer spends on a single purchase. Bundle-promoting ads target AOV directly.

ROAS (Return On Ad Spend)

Definition. Revenue ÷ ad spend.

What it measures. Whether the campaign is profitable on a first-purchase basis. The hurdle rate depends on margin — most DTC brands need 2.5-3x to break even after COGS + shipping.

LTV (Lifetime Value)

Definition. Total revenue from a customer over their full relationship.

What it measures. Whether subscription / repeat-purchase behavior justifies aggressive first-purchase acquisition spend. Subscription brands often run ROAS < 1 on first order if LTV is 5x+.

Why teardown bullets tag metrics

Each bullet ends with the metric it predicts to move because vague claims like "this ad is engaging" don't help operators decide what to test. A claim that "the question hook lifts hook_rate" is falsifiable — you can A/B test it and measure the lift. A claim that something is "engaging" is not.

Related concepts

Related