Advertising campaign performance indicators
Cost of a target call
Why is it important to consider advertising performance indicators?
Efficiency is one of the typical buzzwords from the Bullshit Bingo checklist. And why? Because there is absolutely no specificity behind it. Used separately from any measurable indicators, it remains a loud word from some slogan or sales presentation.
Therefore, when we talk about the effectiveness of advertising, we also cannot do without such indicators. In general, it is they (these indicators) that usually act as "signal beacons" or KPIs, by which management evaluates the effectiveness of the company's marketing department.
Advertising campaign performance indicators
Here are the main indicators of the effectiveness of Internet telegram free number cambodia advertising, including contextual advertising, which a marketer is guided by in his work. The lower each of the indicators below, the better a particular advertising campaign works. Or, to put it simply, the more optimally it “eats” the marketing budget.
ROI (Return On Investment) is the most common economic indicator for determining the profitability or loss of any business process. It is clear that it must be calculated for each marketing channel of the site.
An indicator of the effectiveness of online advertising, such as ROI, is calculated using the formula:
(income - cost price) / investment amount * 100%.
The investment amount refers to the amount of money you have invested in advertising promotion.
Example: you sell watches of a certain brand online. The cost price of the watch is 5,000 rubles. You make your markup and sell the product for 13,000 each. To increase sales, your marketer launched a campaign with a budget of 25,000 rubles per month. Thanks to it, you were able to sell 25 copies of your product. Let's find out how justified the costs were:
(13,000 - 5,000) * 25 / 25,000 * 100% = 800%
In other words, you earned eight times more than you spent on promoting the product. The higher the ROI, the better for your business. (PROFIT!
)CPV (Cost Per Visitor) — the cost of one impression. Or the ratio of the amount spent on paying for the site (website) where the advertising material is displayed and the total number of visitors who viewed the page where the banner is placed. In essence, this indicator is regulated by choosing the most optimal place to place an advertisement with a clear audience. Sometimes they also use such an indicator as CPM — the price for 1000 banner impressions.
CPC (Cost Per Click) — the cost of a click. The ratio of the cost of placing advertising material and the number of visitors who “clicked” (went to the advertiser’s landing page). Again, it is regulated by choosing a site with the highest quality, targeted traffic.
CPA (Cost Per Action) — the cost of a target action of users on the advertiser's website. The CPA model is the most cost-effective option for paying for advertising placements, since in this case the advertiser pays for specific consumers who have confirmed their interest in the product.
CTR (Сlick Through Rate) is a more qualitative indicator, often called in professional slang "clickability". In essence, it shows how often users click on your ad after viewing it. CTR directly depends on the quality of the ad content and how correctly the keywords are selected, in response to the search for which they are shown.
Reach is the total number of users who were shown an advertisement at least once.
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Cost of a target call
Effective online advertising is based on the analysis of the above indicators. These are very important and necessary metrics in the arsenal of any marketer. Clicks give an approximate understanding of where the site visitors come from, banner views - the potential reach of those who saw your ad. But how to figure out which channel really brings customers ready to buy? After all, assessing the effectiveness of online advertising is impossible without answering this question.
This is where call tracking comes to the rescue . This technology allows you to see from which advertising channels calls are coming, to understand where you should cut costs, and where, on the contrary, increase them to increase ROI. One of the most important features of call tracking is the ability to find out which keywords bring more calls, and therefore, bring profit.
And if you need to find out how many deals and for what amount were concluded from applications received from different types of advertising, you need to conduct a more extensive study of the marketing campaign using end-to-end analytics tools .
Why is it important to consider advertising performance indicators?
Advertising campaign performance indicators are fundamental information that allows you to optimize your advertising budget and, accordingly, increase the return on advertising. They motivate the marketer to improve the quality of advertising content, and therefore, to improve its ability to seriously interest customers and set them up for a loyal attitude towards the company. A direct consequence of this is an increase in sales by tens of percent. What an argument