Campaign Performance Metrics
Digital advertising has become instrumental in business growth. As such, the goal of every marketing effort is to build traffic. This, however, is not enough. You still need to convert these into actual sales. In the end, your marketing campaigns should produce positive results in terms of the revenue gained compared to the money invested in digital ads. To ensure that this is the case, it is necessary that you track and analyze the applicable Key Performance Indicators. Here are the main performance metrics that will give you a better understanding of how well your marketing campaigns are doing.
This is the most basic metric that you can use to track the progress of your paid campaigns. Essentially, the budget that you allocate to your ad campaigns should tally with the overall financial gain involved. For instance, if the goal of your campaign is to market a new product, you need to compare the amount of revenue you will receive from product sales with the amount of money you will spend on the advertisement.
Your goal should not be to recover the expense but to achieve a positive ROI. That is, your total revenue subtracted from your total investments should give you an amount reasonably above zero. To improve on your ROI, you may choose to maximize the effect of your ad campaign or lower the amount of money spent on the same.
This metric will help you establish whether you are putting your money to good use by determining how much your ads are contributing to your revenue.
Bounce rate refers to the percentage of people who land on a single page on your website, view without performing any action, and then leave. This is a useful metric for measuring the effectiveness of a campaign ad that is meant to drive users to your website.
A bounce rate that exceeds 5% is quite high. This could mean that the site content that the users are interacting with is not relevant to the call-to-action of your ad. For instance, when marketing a product, if your ad link sends the users to the homepage instead of the product page, they might lose interest and leave. A high bounce rate could also indicate:
The page content was not compelling enough for users to take further action;
Your website is of low quality, not user-friendly or mobile-friendly;
The wrong audience for the purpose of the page
A very slow page or one that returns an error.
You can increase the effectiveness of your ad campaign by making an effort to reduce your bounce rate. You can do this by improving the user experience of your website and updating your page content.
Qualified leads are potential customers who portray a high chance of making a purchase in the near future. A high number of qualified leads is an indication of an effective marketing campaign. These leads can also help you to optimize your conversion rate. This is possible through studying the nature and behavior of these potential customers.
Click Through Rate
Impressions refer to the number of times your ad appears on a viewer’s screen. On the other hand, click rate doesn’t calculate the number of people who just viewed but those who also clicked on the ad for more information.
From these two metrics, we get the click through rate. It shows the percentage of people who, after coming across your ad, chose to click on it. You can calculate it by dividing your click rate by your total impressions. This is a great metric to use if you want to measure the extent to which your ad is sparking the interest of its viewers. Therefore, a high click through rate could indicate that the message in your ad is appropriate for your audience.
If you find yourself having a low click through rate, you should consider reexamining your ad copy. Try and make it more creative and appealing to your viewers so as to encourage them to click on your ads.
The use of click through rate alone as a metric is not enough. It should be used together with other metrics such as the conversion rate.
Landing Page Conversion Rate
Clicking on your ads is not enough. Users still need to take specific actions within the website. This is where the landing page conversion rate comes in. A conversion occurs when a user performs an action that you desired for them to take. This usually depends on the goal of your ad. For instance, the landing page for your ad may be a product page. A conversion, in this case, will be equivalent to a purchase.
Hence, the landing page conversion rate calculates the percentage of people who, after clicking through your ad, converted on the offer. It is gotten when you divide the number of conversions by the number of clicks.
A high conversion rate indicates an increased interest in what you are offering. It also goes to show that users are having an easy time doing so. If you have a low conversion rate, you need to ensure that your ad aligns with what you are offering on your landing page.
Cost Per Conversion
This metric helps you