Digital advertising is increasingly crucial to promote and grow your business. It allows you to reach your audience where they spend most of their time, increasing anything from brand awareness to your customer rates.
Spending big money on digital campaigns means little if you don’t know whether these campaigns are actually performing well. And for the majority of brand, that’s exactly what happens. In fact, more than 75 percent of marketers struggle to track the return on investment for their digital campaigns.
With the right numbers, you can determine exactly whether or not the money you invest in your digital marketing strategy is well-spent. These numbers allow you to make adjustments, prioritize spending, and maximize business growth. To accomplish these goals, here are 9 key metrics that can help you measure and determine the success of your digital ad campaigns.
The most basic of ad metrics answers the question of how far it traveled. Depending on your preferred network, you will get the answer to that question in one or both of two basic ways:
The difference is best explained through an example: one person seeing your ad twice will constitute a reach of one, but two impressions. Either metric is best used to measure the brand awareness you get through your digital campaign.
Naturally, you also need to know how much you are actually spending on your campaign. While the overall cost is probably defined ahead of time, this metric helps you better understand how your budget is spent throughout the campaign.
A reach of 10,000 is much more impressive on a $10 than a $100 daily budget. Monitoring your daily or monthly costs over time also allows you to spot exactly how consistently your campaign has been running, which you can correlate with spikes in other metrics for additional insights.
Most digital campaigns have clicks as an immediate goal. Typically, these clicks direct to the brand website, where the user is prompted to read relevant content, or convert to a lead through a landing page.
Based on that goal, it follows naturally that the totality of clicks can help you understand the success of your campaign on its most basic level. More clicks means more audience attention, which you can leverage into conversions and other desirable actions down the road.
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Total clicks matter, but click-through rate might be even more important. This metric divides clicks by the total impressions of your ad, allowing you to understand which percentage of viewers actually clicked on it.
Whereas total clicks predict success down the funnel, your click-through rate allows for direct insights into the success of the ad itself. Through continuous A/B testing, you can improve individual aspects of your ads to maximize your click-through rate over time.
Take your average daily or monthly costs, and divide them by the total clicks for that time period. You get your cost per click, which can be a crucial determinant for understanding how well your budget is working toward your basic campaign goal.
Costs per click can vary significantly based on your industry. In real estate, for instance, the average cost per click for Google search ads is $1.81, while the average Facebook cost per click is just under $2. Because most digital ads are charged by the click, this metric is crucial to forecasting your budget as well.
Once members of your target audience get to your website as a result of clicking on your ad, what happens? A visitor who immediately bounces is of little value to your business. To better determine the success potential of each click, consider using a platform like Google Analytics to track your web metrics.
More specifically, it makes sense to track the average amount of time a visitor spends on your website, as well as the number of pages they view while there. You can narrow your data by channel, allowing you to pay special attention to web visitors who came from paid ads.
Ideally, a visitor to your website doesn’t just spend some time there, but converts to a lead for further, more targeted marketing. How well your individual ads perform in accomplishing that goal can be crucial in determining the ultimate success of your digital ad campaigns.
In that effort, lead conversion rate will be an important metric. More specifically, what percentage of users who view your ads actually converted to leads on your website? Through tracking pixels on ad platforms like Google and Facebook, you can easily relate individual website conversions back to your individual ads.
Similar to cost per click, this metric helps you determine your actual ROI. If you know that an average customer is worth $10,000, and about 5 percent of your leads convert to customers, you know that the average lead is worth $500. Now, you know that a cost per lead below $500 will result in a positive return on investment.
Cost per lead is also an ideal metric to compare different advertising networks. Facebook, for instance, tends to have a lower cost per click but higher cost per lead than LinkedIn. Which of the two works best for you ultimately depends on your marketing goals.
Finally, the holy grail of marketing metrics: how many of your leads actually become customers? Once you figure out this number, you will have a better idea of exactly how successful your ads actually are.
The lead to close ratio finishes your sales funnel. In combination with your other metrics, it helps you track the success of your ads from first exposure all the way to becoming customers. As a result, it will be vital to measure the success of your digital ad campaigns.
Track these metrics, and you will increase the chances of each ad actually making an impact for your audience. The result is reliable, sustainable business growth. But of course, you still need the right marketing strategy and execution to actually make that happen.
If your brand or business would like to establish and succeed with digital ad/marketing campaigns, contact us to schedule a free consultation.
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