Paid Social is traffic and conversions you buy from social networks by running ads to targeted audiences. Platforms auction inventory in real time and you pay per impression, click, or conversion. Unlike organic social, where reach is earned, Paid Social guarantees distribution to a defined segment, making it a controllable acquisition channel you can analyze alongside paid search.
Paid Social is a clean experiment harness. You set budget, audience, and creative, then observe on‑site behavior: do users start a session, view pages, complete a conversion? With consistent UTM parameters and clear attribution, you can isolate this traffic and compare efficiency to email, search, and referral. It is also a fast way to test messaging that later informs landing pages and conversion rate optimization.
Core metrics and quick math
| Metric | What it tells you | Formula |
|---|---|---|
| CPC | Cost to get a click | Spend ÷ Clicks |
| CPM | Cost per 1000 impressions | (Spend ÷ Impressions) × 1000 |
| CTR | Ad relevance and pull | Clicks ÷ Impressions |
| CPA | Cost to get a conversion | Spend ÷ Conversions |
| ROAS | Revenue efficiency | Revenue ÷ Spend |
Mini example: Spend = $2,000; Impressions = 500,000; Clicks = 4,000; Conversions = 160; Revenue = $8,000.
CPC = 2000/4000 = $0.50; CPM = (2000/500000)×1000 = $4; CPA = 2000/160 = $12.50; ROAS = 8000/2000 = 4.0×.
Practical notes for analysts
- Tag every ad with UTM parameters so sessions roll into the right source/medium.
- Align attribution windows with buying strategy; short windows favor click‑driven creatives, longer windows capture view‑through influence.
- Segment new vs returning unique visitor cohorts to see whether Paid Social acquires net‑new users or nudges existing ones.
- Break out performance by audience, creative, placement, and country to find scalable pockets instead of chasing blended averages.