Digital marketing is an essential part of any 2023 (and beyond!) marketing strategy and it’s likely that you either have an internal team working on this for you at your business, or you’ve outsourced it to a team to handle it for you. All of this is great, you’re on the right path, but – as with many business dealings – knowing exactly what it is you want to achieve from your investment in digital marketing is crucial.
So, of all the metrics that are available to set goals and measure success, which are the most important?
In the United States (the market leaders in digital marketing optimisation), a panel of experts from a range of top marketing agencies ranked their top three metrics to focus on, as well as metrics they thought were less important.
You can read the results here: Read the results but before you do so, it’s probably worth getting a better understanding of the key terms that crop up in the article – that way you’ll have the tools you need to ensure your digital marketing team is focused on the right things.
CPA – Cost Per Acquisition
This is a metric that measures the total cost of acquiring a new customer or sale, and it’s calculated by dividing the total cost of a campaign by the number of conversions it generated. CPA is a valuable metric for assessing the effectiveness of a campaign and its return on investment (ROI).
CTR – Click Through Rate
This measures the percentage of people who click on an ad after seeing it. It’s calculated by dividing the number of clicks by the number of impressions (views) the ad received. A higher CTR generally indicates a more engaging ad that’s likely to generate more clicks and conversions.
This is another important metric – it measures the percentage of people who take a desired action after clicking on an ad. This action could be anything from making a purchase to filling out a form or signing up for a newsletter. Conversion rate is calculated by dividing the number of conversions by the number of clicks, and it’s a crucial indicator of the effectiveness of a campaign.
CPL – Cost Per Lead
This measures the total cost of acquiring a lead, such as someone who fills out a form or signs up for a newsletter. CPL is calculated by dividing the total cost of a campaign by the number of leads it generated. This metric is particularly useful for lead generation campaigns, as it helps marketers determine the most cost-effective channels and strategies for acquiring leads.
This is a metric specific to PPC Campaigns, it measures the percentage of times an ad was shown to someone who was searching for a related keyword or browsing a relevant website. It’s calculated by dividing the number of impressions an ad received by the total number of impressions it was eligible to receive. A higher impression share generally indicates that an ad is being shown to a larger percentage of its potential audience.
ROI – Return On Investment
This is a term that’s likely to be relevant to your business as a whole – is a metric that measures the profit generated by a campaign relative to its cost. It’s calculated by subtracting the total cost of a campaign from its total revenue, and then dividing the result by the total cost. ROI is a crucial metric for determining whether a campaign is generating a positive or negative return, and it’s often used to inform decisions about how to allocate marketing budgets.
Profit Per Impression
PPI is a metric that measures the amount of profit generated by each impression of an ad. It’s calculated by dividing the total profit generated by a campaign by the number of impressions it received. This metric can be useful for comparing the profitability of different ad formats or placements.
Ad Rank is a metric that measures the position of an ad in search engine results pages or other ad placements. It’s calculated using a variety of factors, including bid amount, ad quality score, and ad relevance. A higher ad rank generally indicates that an ad is more likely to be seen by potential customers.
Lost Impression Share is a metric that measures the percentage of times an ad was not shown due to budget constraints or other factors. It’s calculated by dividing the number of impressions an ad could have received by the number of impressions it actually received. A high lost impression share generally indicates that a campaign is not reaching its full potential due to limited budget or other factors.
Finally, Quality Score is a metric that measures the relevance and quality of an ad and its landing page. It’s calculated by search engines like Google using a variety of factors, including click-through rate, ad relevance, landing page quality, and other factors. A higher quality score generally indicates that an ad is more relevant and useful to potential customers, and it can lead to higher ad rankings and lower costs per click.
As the experts say, their aggregated view ranks some of the above metrics higher than others, but either way they’re all important. Focusing your digital marketing efforts on these should give you a head start over your competitors, and set a great base for your platforms in the future.
If you’d like to find out more about setting up targeted, well-optimised digital marketing campaigns that deliver measurable results give Realnet a call today on 01223 550800 or email email@example.com – our team is on standby to help you drive sales, leads and conversions.