Brands are increasingly focusing their resources on building stronger digital connections. The Rule of Seven states that it takes seven interactions with a brand before an interested party takes action. Digital advertisers can use metrics to measure marketing performance across multiple channels, but the specific metrics will vary depending on the goals they've set for their marketing and advertising strategy. Here are 12 commonly used key metrics that help gauge the effectiveness of a brand-building strategy.
1. Impressions
Impressions are the number of times an ad is displayed to your target audience. That’s the potential number of viewers that have had an opportunity to view all or part of your content. Search engines serve up ads to viewers based on their search history. As algorithms improve, prospects will continue to expect more personalized content creation.
2. Reach
The difference between reach and impressions is very subtle. While impressions refer to the frequency that content is shown, reach is determined by the number of people who may have seen it. By monitoring the reach of your ads, blog posts, and videos, you can identify your audience's preferred formats.
3. Click-through Rate (CTR)
Divide clicks by the number of ad impressions, and you get your CTR. A click-through represents a lead that wants to know more. It's nearly impossible to get a definitive answer to what many marketers consider a simple question. So what's a good CTR?
Click-through rates vary by platform, industry, and the quality of content. For example, according to Google, the average CTR for the Finance industry is 2.9%, while ads related to entertainment can get 16% click-through rate. Research average industry numbers and blow that number out of the water.
4. Conversion Rate
Conversion rate is the percentage of people who responded to a Call to Action (CTA), such as making a purchase, filling out a form, or signing up for an e-newsletter after clicking on your ad. It measures how effectively your ad drives desired user actions.
5. Cost per Click (CPC)
CPC represents the average cost you pay for each click on your ad. By dividing the total cost of clicks by the total number of clicks you get your CPC. Using this formula provides visibility to the expenses incurred in driving traffic to your website or landing page.
6. Cost per Acquisition (CPA)
CPA measures the average cost to acquire a customer or achieve a specific conversion goal. It considers the total advertising spend and the number of conversions, providing insights into the efficiency of your advertising campaigns. CPA is calculated by dividing marketing costs by new customers.. For example, if all marketing efforts cost $1,000 and the number of potential customers is 100, the customer acquisition cost is $10.
7. Cost Per Lead (CPL)
Divide the total monthly cost for customer acquisitions by the number of leads generated and you have your CPL. CPLs give your teams the numbers they need to set more realistic sales goals and calculate advertising budgets. To determine if your content and strategy are on point, calculate your CPL on each channel and for all campaigns individually. It’s a little extra work, but the metrics can tell your marketing and sales teams which content and platforms are the most successful at driving the most leads.
8. Return on Ad Spend (ROAS)
ROAS calculates the revenue generated for every dollar spent on advertising. It helps determine the profitability of your campaigns and allows you to optimize your budget allocation based on the channels or strategies that deliver the highest returns.
9. Viewability
Viewability measures the percentage of your ad that users see. It helps ensure your ads are visible and displayed effectively to your target audience.
10. Engagement
These include metrics like time spent on a page, bounce rate, and average session duration. See where users interact with your website or landing page after clicking on your ad, indicating the level of engagement and user experience.
11. Bounce Rate
Leaving a website or landing page without taking action is known as the bounce rate. A high bounce rate may indicate poor ad targeting, irrelevant content, or user experience issues. Maximize your assets to load quickly and double-check your links. User experience has never been more critical.
12. Return on Investment (ROI)
ROI measures the overall profitability of your advertising campaign. It considers the total revenue generated and the total cost incurred, providing a comprehensive view of the campaign's financial performance.
If you’re hitting your numbers, stay the course. If you’re not, then be prepared to pivot. In digital marketing, speed and flexibility are just as important as having a solid team of creatives.
The importance of each metric will vary by industry, audience, and the brand team's specific goals and objectives. Therefore, regularly track and analyze these metrics to discover trends and understand consumer behavior. Data not only verifies what works but can also quickly identify what doesn't. The insights you gain can help you optimize campaigns that drive better results.
Start with Social Media KPIs
How do brands focus their available resources on building digital connections with the most qualified leads? They start with a short list of Key Performance Indicators (KPIs) as the measurable objectives they want to meet to improve engagement rates and achieve carefully considered marketing goals. The following are just a few examples of marketing KPIs:
● Drive website traffic with original content in blog articles, emails, and ads
● Solidify your status as an industry thought leader
● Increase social media engagement with more likes, comments, and shares
● Expand brand awareness with clear and consistent messaging
● Meet revenue goals by converting high-quality leads
Are you launching a new subscription-based application that will improve operational workflow? Then you’ll need to measure click-throughs and conversions to gauge content performance. If you’re trying to expand brand awareness, you’ll probably be more interested in the impressions and reach your posts get.
Once KPIs are in place and you know which social media metrics to measure, you can monitor your content's performance across all channels. Use your most popular posts to determine which messages resonate with your audience. And remember to look past the numbers and charts and listen to what your viewers say. Questions and comments need quick and thoughtful responses as more customers bypass customer helplines to seek assistance on social media.
Monitor Those Metrics
Collecting and analyzing every available data point would be impossible, so keep your marketing team focused on delivering captivating content. Don’t drown yourself in the alphabet soup of data anymore. Choose the metrics that support your KPIs and monitor them frequently.
Of course, there are many more than the dozen we mentioned above, so never stop looking for the right mix of metrics that give you an accurate snapshot of what success looks like in your industry.
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