What indicators will help measure advertising effectiveness and what should characterize an effective advertising campaign ? We advise!
KPIs for advertising campaigns
A good advertising campaign is one that achieves its assigned goal. In the case of online marketing activities, this is usually actions performed by users, i.e. conversion (although in image campaigns the desired action may be just visiting the website). These are activities that generate profit directly through sales or lead to them in smaller steps.
For this reason, the effectiveness of an advertising campaign should be measured primarily based on the number (and sometimes quality) of actions taken by the target group, as well as the costs of obtaining them. All of this can be called KPIs (Key Performance Indicators), or key performance indicators.
The most important of them are:
CTR (Click Through Rate) – this is the so-called germany mobile phone number clickthrough rate, which determines the ratio of the number of ad clicks to the number of its displays. Too low most likely indicates that the ad creation does not encourage clicking. The problem may be: lack of benefit language, unclear message, incorrectly created CTA.
Number of ad impressions – this tells you how many times your ad was shown to users. A low share of impressions may indicate poor ad quality, poorly selected keywords, or too low a bid.
Conversion rate – allows you to determine how much engagement a campaign generates. Conversion is a direct response to an advertising message and can take many forms, depending on the company's goal. An effective advertising campaign should encourage users to interact.
Website Traffic – This indicator tells you how many people have gone to your website through your ad. It’s worth tracking the statistics for each keyword phrase.
CPC (Cost Per Click) – the price for one click. As the creator of the campaign, you determine the maximum rate yourself, but the actual costs incurred to acquire one customer may vary. If the CPC is too high, it may indicate high competition, as well as low quality advertising.
CPA (Cost Per Action) – this is the cost of obtaining a conversion. It tells you how much it costs a company to generate one desired action. It can be calculated by dividing the total cost of the campaign by the number of actions.
Bounce Rate – This shows how often users who come to your site through an ad leave without taking action. A high bounce rate indicates that your landing page is not meeting the needs of your potential audience
Effective advertising campaign – choose your goal
An effective advertising campaign should have a clearly defined goal. This will allow you to not only monitor progress, but also select an effective strategy and verify appropriate KPIs. Not all of the above-mentioned issues should be tracked for every type and goal of campaign. The effectiveness of image campaigns manifests itself differently than the effectiveness of sales campaigns. Therefore, other statistics should be analyzed.
Indicators for campaigns focused on image goals:
number of ad views,
views for individual keywords,
share of impressions (e.g. in the top position).
Metrics for campaigns focused on building traffic:
CTR rate,
traffic from individual keywords,
ad position.
Metrics for conversion-driven campaigns:
CTR rate,
conversion rate,
conversion cost,
number of ad views.
Tools for measuring the effectiveness of online advertising
To create an effective advertising campaign , you need to regularly analyze statistics, then conduct tests and check which solutions are the most effective. How to do it? Counting every click or visit to the site on your own would be impossible. Fortunately, thanks to digitization, we can do it in an easier way - using special tools to measure the effectiveness of the campaign.
If you create an ad in popular systems such as Google Ads or Facebook Ads, you will be able to automatically generate reports and check the metrics that are important for the selected campaign goal. You can connect your Facebook ad account to your company page using a Facebook pixel, a piece of code that collects information about activity from the page.
However, to create an effective advertising campaign in Google Ads, it is worth connecting your account with the Google Analytics tool. It provides the KPIs described earlier, as well as many other statistics (e.g. time spent on the site, phrases generating the most traffic, hours of peak traffic).
