How to check if an advertising campaign is effective?
Posted: Sat Dec 07, 2024 6:52 am
"Half the money I spend on advertising is wasted. The problem is, I don't know which half" - these words were spoken over 100 years ago by John Wanamaker, an American merchant considered the father of marketing. Fortunately, today we can solve Wanamaker's dilemma, because the Internet allows us to track every single action performed by a user. Thanks to this, it is possible to precisely measure the effectiveness of marketing activities conducted on the web.
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 country code +852, hong kong phone numbers 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 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
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 country code +852, hong kong phone numbers 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 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