So Many Numbers! Which Ones Actually Matter?
Wow, it’s been a while. We’ve been so busy recently with campaigns for clients (and a nice little holiday!) that we haven’t really had much time to write any blogs. We hate when it gets like this, because we’re always preaching to our clients that they should be posting as much original content as possible. But for us it often makes sense for it to take a back seat, every business is different!
When it comes to any form of advertising, there are so many metrics and measures to keep your eye on that it can get quite daunting! It’s important to remind yourself that with online advertising we’re lucky that everything is so trackable! Companies can and still do spend millions on TV ads or billboards, without being able to track a definitive ROI. So what’s the most important metric to watch?
Surely it’s Cost Per Purchase?
Well…no. What if your campaigns aim is to get leads? Shouldn’t it be cost per lead? Well…no! The most important metric in online advertising is Return on Ad Spend: ROAS – and measuring this is often different for every business. But business is business, and if you’re not getting a positive return on your ad spend then you’re not doing it right.
SMR Social’s Key Metrics
Every advertiser has their own methods and strategies, as well as their own ideas of what’s important to measure. Every campaign is different but these are the key metrics that we would recommend keeping your eye on to anyone:
- CPM (cost per thousand impressions)
- CPC (ALL)
- CPC(Cost Per Link Click)
- CTR (ALL)
- CTR (Link Click-Through Rate)
- Cost Per Conversion
- Website Purchases Conversion Value (if applicable)
- Amount Spent
- ROAS (return on Ad spend)
These are the metrics that WE’VE found to be the most important in nearly all campaigns we do. Sometimes Purchases will be substituted with Leads or some other variables depending on the type of campaign we’re running. If you’ve found a different set of metrics are more important to a specific type of campaign that you’re running, then great.
Once you’ve started to keep your eye on all of these metrics, and got an idea for what you expect the metrics to be, you can start to really dig deep and make small tweaks that can have a huge impact on the success of your campaign.
Let’s say you’re selling a product on your website, and your cost per purchase is working out at £10. But your CPM is working out at £30. The chances are that if you’re able to drop your CPM, you CPP will drop too. There are a few ways to drop CPM’s and the first one we always go to is duplicating the ad set. After a certain amount of time most ad sets CPMs raise because of fatigue, so duplicating them often ‘restarts’ things. If that doesn’t work, try using a video instead of a picture.
Have a go and see if you can improve your numbers and increase your Return On Ad Spend!