# Moving Average

**Category:** metrics  
**Short Description:** Rolling calculation that smooths data fluctuations over time.  
**Last Updated:** 2024-03-20T11:00:00Z

## Definition

A moving average is a statistical calculation that creates a series of averages from different subsets of data over time. It helps identify trends by smoothing out short-term fluctuations and random outliers in metrics like CPC, CTR, or ROAS.

## Calculation

**Formula:** `MA = (V₁ + V₂ + ... + Vₙ) / n`

**Explanation:** Sum of values in the time window divided by the number of periods, where V represents values and n is the time window

### Components

- **Current Value**: The metric value for the current period
- **Previous Values**: The metric values for the previous n periods
- **Time Window**: Number of periods to include in the moving average

## Examples

- 7-day moving average of daily CPC to identify bidding trends
- 30-day moving average of ROAS to assess campaign health

## Related Terms

### Similar Terms

- **[Statistical Significance](/resources/glossary/metrics/statistical-significance)**: Both help identify true performance patterns vs random variation. While moving averages smooth fluctuations, statistical significance validates if changes are meaningful
- **[Exponential Moving Average (EMA)](/resources/glossary/metrics/exponential-moving-average-ema)**: EMA prioritizes recent data while standard moving average weights all periods equally

### Component Terms

- **[Standard Deviation](/resources/glossary/metrics/standard-deviation)**: Helps establish normal ranges around moving averages for monitoring performance

## Related Resources

- [Moving Average Interactive Example in AdSights Creative Fatigue Article](/blog/topics/creative-strategy/creative-fatigue-in-meta-ads-detection-and-management-strategies) - Demonstrates how moving averages help identify creative fatigue patterns in advertising performance