Key Digital Advertising Metrics All Marketers Should Know
Tracking and measuring your business’ digital advertising metrics is crucial to your campaign’s success.
If you aren’t tracking your advertising methods correctly, you’ll never know what’s working and what channels to focus your dollars on.
Determining your ROI goals also means you’ll be able to evaluate the efficiency of your ads and how your target audience interacts with those ads. Here are a few of the key metrics to track that will help you measure success and determine ROI:
Calculating CPA – Cost Per Acquisition, also known as CPL – Cost Per Lead
How much does it cost you to acquire a new lead on any given channel?
Knowing the cost to acquire a client for your business is the basis of your marketing budget, so it’s crucial data to add to your ROI analysis. Combined with other ad data, this will determine whether your business will make a profit.
Ideally, you’ll want to get a sense for which mix of ad channels (Search, Facebook, Display) work best for your business. Then you’ll be able to better optimize your ad budget going forward.
Here’s the formula for CPA:
CPA is an easy but valuable formula. It is key to understanding your ad ROI, knowing how much it costs to acquire a new lead. However, we still don’t know the actual value of your client’s customers. The next thing we’ll discuss is LTV, which is essential for further ROI analysis.
LTV – Lifetime Value
It is very important to know the lifetime value of your customers. Why? Because it will help you know approximately the revenue a new customer brings in, with all associated costs factored in.
You will also be able to compare it directly to the cost of acquiring a new client through your digital ad campaign.
Here’s the formula you can use to determine your LTV.
CR – Campaign Revenue
Now that we know how to calculate and analyze the lifetime value of your customers, we’ll be able to track the revenue generated by your digital advertising campaign. You just need to multiply your campaign’s conversions by LTV and closing ratio (50% would be .5).
Why include closing ratio? Because, every new lead you generate isn’t going to become a customer, so you’ll need to factor in how often you are able to close new leads to estimate campaign revenue correctly.
ROAS – Return on Advertising Spend
ROAS is an illuminating metric to use for ad campaigns, and a lot of marketers use it interchangeably with ROI itself. Although you can find many significant differences between the two. For instance, Tim Mayer, CMO of Trueffect explains:
“ROI measures the profit generated by ads relative to the cost of those ads. It’s a business-centric metric that is most effective at measuring how ads contribute to an organization’s bottom line. In contrast, ROAS measures gross revenue generated for every dollar spent on advertising. It is an advertiser-centric metric that gauges the effectiveness of online advertising campaigns.”
So advertising ROI incorporates the bigger picture relative to the business, while
ROAS is much more focused on the results from specific campaigns. This means that it’s much easier for you to be tracking and analyzing advertising efforts with ROAS! Since you know the cost and you can calculate the revenue.
Setting your own campaign goals based on past performance and benchmarks is the best way to proceed with your advertising efforts.
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Advantages of Print Advertising
We are now living in an age of technologically-obsessed people, who just won’t feel comfortable, unless they are constantly connected to some sort of digital device. And as a result of this, the entire world has moved online. Some in the advertising industry would have you believe that print advertising is dead and buried. This couldn’t be any further from the truth, in fact, people find that magazines provide quality and accuracy, as they are trustworthy and impartial [Ofcom Report 2018].
Print advertising is very much alive and businesses who do use print in their marketing mix have the potential to significantly increase response rates. Here are five very important advantages to print advertising:
- Credibility
Print publications are still considered to be one of the most trusted forms of media around. Many of us are now finding it difficult to know which sources to trust online, however print publications are known to be unbiased and accurate when it comes to advice, reviews and quality of businesses that advertising - meaning they know what they are seeing and reading is of a certain standard.
In particular, the print publications that consistently offer readers high-quality and reliable content, have developed credibility. When brands place ads in respected and well known print publications, they will automatically receive the same positive, trusting feelings from readers that are associated with the publication itself.
What does this mean for you? This means that any content that you place in a print publication is seen as completely trustworthy and credible, making generating leads and sales a lot easier.
2. Brand Awareness
Branding and awareness is the start of any customer’s journey. It drives consumers' thought process when making purchasing decisions, especially when differentiating between competing companies.
According to ISPO news, “90 percent of all purchasing decisions are made subconsciously.” Therefore, with a good marketing campaign focused on your brand and business model, you will more effectively narrow in on your target audience and encourage them to feel connected to your brand.
Brand awareness, quite similarly to reviews, affects perceptions and attitudes, which drive brand choice and even brand loyalty. This means that without brand awareness, repeat purchases are less likely. And since print is one of the most trusted forms of media, what’s a better way to push brand awareness than through a credible publication.
3. Attention Span
This new digital age has almost completely killed the human attention span. We now surf the web with 5 different tabs open whilst posting a story on instagram, talking to someone on Facebook IM and attempting to stay on top of the new episodes of ‘Suits’ in the background. Consequently, we just aren’t as receptive to all this digital advertising happening around us.
However, print readers don’t and quite simply can’t multitask when reading a magazine, allowing them to be a lot more engaged and receptive to adverts within the publication.
4. Unplugging is in
Although we are tech-obsessed creatures as previously mentioned, we are slowly but surely realising and understanding the value of ‘unplugging’ every so often. When this rare (now growing) occurrence happens, we do tend to turn to print media as a form of entertainment and engagement.
5. Flexibility and options
Now with GDPR in place, many businesses have turned to print advertising as it allows you to target your ideal audience, without stumbling upon any trouble.
You are able to choose a specific industry focused publication, whether it be lifestyle, weddings, education etc and can also make decisions on where to place your advert based on the geographical location that the magazine is delivered in.
Print also allows you to tailor a campaign to fit around your budget. You can choose from a variety of spaces, whether it be a quarter, half or full page advert. This also means you will actually be working with a human being when buying your ad space, instead of relying on an online algorithm to decide where your ads will live!
Print advertising is very much alive but so is online advertising, and this is how it can help your business grow.
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