Why tracking advertising metrics is necessary
The end-game of every business is growth. You want to increase your bottom line. This means that digital marketers need their advertising to generate positive results every month in order to be successful. If you don’t have a plan to track your ad campaign’s performance, you can’t show that it is successful. It is essential to have a list of advertising metrics that you check on a regular basis so that you can make changes to your campaigns as needed – think of it as a checklist.
A good way to begin analyzing your Google and Facebook ad metrics is to start by looking at them. The metrics described below can be used to measure, compare and evaluate your campaigns, allowing you to determine whether your advertising is achieving your desired ROI. Many key advertising metrics that can be applied to display advertising can also be applied to email and social media.
Google advertising metrics
Whether you’re running paid advertising campaigns in Google Ads or just tracking website traffic metrics in Google Analytics, Google provides you with a lot of digital advertising metrics to help you monitor your advertising ROI.
1. Total site traffic
Every website needs to be seen by lots of people who are interested in what it sells, in order to increase sales. Web traffic is the amount of data sent and received by visitors to a website. The number of visitors and the number of pages they visit determines how successful a website is. of different pages Websites use monitoring tools to keep track of the amount of traffic coming in and going out of the site. This helps website owners to see which pages are popular and identify any trends.
You should track your campaign’s progress regularly to see how much traffic it is bringing to your site.
The number of targeted and unique visitors matters a lot. The number of targeted and unique visitors is important because if a visitor leaves within ten seconds, you cannot generate sales.
Firstly, you should research your target audience and market. Secondly, you should identify and locate them.
In order to take the desired action, subscribe to your site first, and then buy what you are selling.
Tips for Generating high-quality unique visitor:
- Have quality web content
- On-page SEO optimization
- Promote to channels your visitors are active on
2. Bounce rate
This metric is also important in indicating how well your site is performing. A person who visits your site and then leaves immediately without doing anything else contributes to your bounce rate.
If you have a high bounce rate, that means there are some problems with your campaign, like targeting the wrong audience, or having a weak landing page. It could also mean that your traffic sources are irrelevant.
3. Page value
The average value for a page that a user visited before landing on the goal page is known as the page value. This value is used to measure how well a website is performing in terms of prompting users to take specific actions, such as completing an ecommerce transaction. The value tells you which website page has contributed more to your website’s revenue.
4. CPM (cost-per-thousand impressions)
You will pay a certain amount per one thousand views when you run ads on the Google Display Network. CPM bidding means that you pay per thousand impressions. Selecting viewable CPM bidding ensures that you only pay when your ads are seen by a human.
Clicks can help you measure how effective your ad or web page is by allowing you to track how many times users take a specific action. This way, you can determine how well your target audience is responding to your marketing campaign. Click triggers fire tags in Google Tag Manager when a click event occurs. This allows you to see when an element on a page that meets the trigger requirements is clicked.
6. CPC (cost-per-click)
You will pay a certain amount each time someone clicks on your ad that is placed on Google. Your maximum CPC is the most you will be charged for a click.
The conversion rate is a metric that measures how many potential customers take a desired action, such as making a purchase. This metric is important because it can have a significant impact on the profitability of your site.
If the conversion rate increases by 1%, your profits double. Conversion rate is a metric that tells you how effective you are at converting your web traffic into the desired action.
The conversion rate is calculated by taking the number of organic or unique visitors and dividing it by the number of conversions.
Few common types of conversion actions:
- If a visitor makes a purchase
- Submits a form (contact form, info form, lead generation form)
- Engaging through chat
- Subscribes or signs up
- Downloads some material or information
- Upgrading their service
Using google analytics you can track your conversion rate. The factor that affects conversion rates can differ from site to site. Moreover, you can be as broad and as specific with your conversion rate to examine your performance:
How effective is your website at converting traffic into leads or sales, regardless of where the traffic came from?
What is the conversion rate for marketing channels such as Google Ads or Facebook Ads?
are most important while dealing with optimization Page-level conversions are the most important thing to consider when optimizing your website.
What was the campaign’s conversion rate? How effective was the campaign, or was there any specific campaign that worked better?
How effective an ad is at converting traffic into a desired action. If an ad isn’t driving enough traffic or isn’t converting traffic at a high enough rate, you may want to change the copy or design of the ad.
What is your site’s keyword conversion rate? Using which keyword brings more traffic to your site, or which keyword deserves more budget?
8. CPC (cost-per-conversion)
This term, CPA, is used in Web analytics and online advertising that indicates the total cost paid for a campaign in relation to the success of the goal. It is the ratio of number of viewers to the number of successful conversions – sign ups, purchases, or any other fruitful interaction.
The metric calculates the cost of acquiring a customer through advertising. There are traffic packages where the advertiser pays a fixed amount for a specific number of views or time span.
Campaign optimization- means increasing the number of conversions by keeping the cost per conversion the same If a campaign costs $100 and results in 100 views, with 8 of those views resulting in conversions, then campaign optimization would aim to increase the number of conversions while keeping the cost per conversion the same.
CPC = $100/8, so cost per conversion is $12.5
9. Cost-per-acquisition (CPA)
This metric measures the cost of acquiring one paying customer on a campaign. This tool is important because it can help you measure how much revenue your campaign generates. CPA provides a business perspective to help assess the success of a campaign.
It is used in the following paid marketing mediums:
SEO can also be used for ecommerce, email, and other platforms that don’t have direct advertising costs, but still require overhead (labor, indirect expenses such as content production, etc.).
10. LTV (lifetime value)
LTV is the amount of money that a customer spends with a company over the course of their relationship. This Metric allows you to predict how much revenue each new customer will bring in over the course of their time with your company.
LTV can help you understand which customers are the most valuable to your business and how to keep them coming back. If you can identify your life-time clients and what they need, you can keep designing and providing products and services that meet their requirements.
11. ROAS (return on advertising spend)
ROAS allows you to see how much revenue is generated from specific ad campaigns, as opposed to ROI which shows you the overall return from all marketing efforts. This is how you calculate ROAS:
12. Engaged visit rate
This metric measures the quality of visits coming from your display advertising campaigns, which is the opposite of bounce rate. To calculate the engaged visit rate, take the bounce rate as a percentage and then subtract it from 100.
13. YOY comparisons
Comparing your ad campaigns year-over-year gives you a more comprehensive overview than month-over-month comparisons. The YOY function allows for things like seasonality or public holidays to be taken into account so that it is easier to see how campaigns have performed over time.
14. Quality Score
Quality Score is a 1-10 rating that significantly impacts ad rank for paid search ads on major search engines such as Google and Bing. Both platforms collect user’s feedback in the form of click-through-rate (CTR), ad relevance, and post-click landing page experience — all of which help determine Quality Score:
Advertisers with higher quality scores gain a higher position in SERPs. This means that if you have a higher Quality Score, you can get a higher ad rank than an advertiser who has a higher bid but a lower Quality Score.
- Expected clickthrough rate: The expected CTR determines whether your keyword is likely to get a user to click your ads. Google Ads takes into account the past performance of keywords based on your ad’s position. Both ad platforms provide an expected CTR for a keyword of your campaign based on the assumption that the search term will match that keyword exactly.
- Ad relevance: Ad relevance is a status that measures the message match between your keyword and your ad. For example, Google and Bing determine if someone searching for a keyword you’ are bidding on sees your ad is relevant to the search query.
- Post-click landing page experience: Both Google and Bing measure post-click landing page experience by determining how relevant your post-click landing page is to your ad, and how much it relates to the user’s search term. The post-click landing page experience status describes whether the post-click landing page provided a good experience for the visitor who landed on the page after clicking the ad.
Now, onto YouTube advertising metrics…
YouTube advertising metrics
15. Cost-per-view (CPV)
CPV is the amount you pay divided by the number of views that resulted in your ad playing to completion (or at least 30 seconds) Cost Per View (CPV) is a measure of how much you spend each time a user engages with your ad on YouTube. CPV is calculated by dividing the amount you pay by the number of views that resulted in your ad playing to completion (or at least 30 seconds). Advertisers have control over how much they are willing to pay for a view. They can make adjustments as necessary and will never pay more than their bid amount.
16. Earned actions
actions that are a direct result of seeing your ad, such as subscriptions, likes, and additional video views. A higher number of actions means that users were more interested and engaged with your ad content, and by extension, your brand.
17. Video viewership
This metric measures ad completion rates for videos connected with your linked channel. Also known as “quartile reporting,” this metric is a valuable tool for understanding how your videos perform with ads. This metric tells you how often people watch at least 25%, 50%, 75%, or all of your video.
Facebook ad metrics
The social network collects a lot of data to help you customize and improve your Facebook ad campaigns. To view your campaign performance, navigate to the Facebook Ads Manager and select ‘Reporting’ from the left-hand side menu to open the Ads reporting tool. Then, select ‘All time’ from the date range dropdown menu to view your ad performance data from the start of your campaign to the present day. There, it tells you what’s performing for your campaigns and what’s working against them, like the following metrics:
The total number of users who have seen your ads on Facebook, including both paid and organic views, is calculated by Reach.
In other words, impressions are a metric that tells you how often your ads and posts are being seen by people on Facebook. This metric can be a good indicator of how well your content is performing and how viral it is. Facebook only counts each view of a post by a single user as one impression, even if that user views the post multiple times.
The amount of times a user interacts with an advertisement measures engagement. The possible actions someone can take after seeing a post on social media are clicking on the link, sharing the post, leaving a comment, and/or reacting to it. To check how well your Facebook posts are doing, go to Facebook Insights.
You can learn about the preferences of your target audience by measuring their engagement with your sponsored posts. This includes information about which content they prefer and which content they ignore.
21. CTR (click-through-rate)
Click-through-rate (CTR) is a metric that measures the percentage of people who see your ad and then click on it to visit the post-click landing page. WordStream’s Facebook CTR data concludes that average CTR for Facebook ads across all industries is a dismal 0.90%:
Blue = low CTR, Green = high ad reach, Yellow= high ad impressions This color scheme signifies that users are seeing your ad but aren’t clicking through. A low CTR compared to a high ad reach and impressions signifies that users are seeing your ad but aren’t clicking through. If your ad click-through rate is below average, it is advisable to test your ads against each other to see what your audience responds to best.
The more ad impressions Facebook sees and the lower your ad’s click-through rate, the less relevant Facebook will deem your ad to be. This, in turn, will lower your ad’s relevancy score.
Useful tips to improve your CTR:
- Optimize your headline and copy: Your headline must have one or two focus keywords. Cater to the needs and emotions of your target audience. Provide a solution to their needs.
- Include Call to action (CTA): Prompt your audience to take action. Write direct, convincing and compelling cal to action and help your customer make decision.
- Use of visuals and images: Good visuals definitely boost your CTR. The choice of a suitable image is also important as some images work better than the others.
- Hashtags: Hashtags would increase your Facebook visibility.
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