Weekly Tip: What are the Best Metrics to Evaluate Digital Marketing Campaign Performance?
In the digital marketing age, no marketer would dare to take the risk of ignoring the importance of metrics. As a matter of fact, metrics can help marketers measure the performance of their digital marketing campaigns, site traffics, lead generation and revenue and so on. Without using proper metrics to evaluate the performance, it is difficult for marketers to compare results of different marketing efforts and make rational decisions to reallocate their marketing budget across different channels to achieve their goals. Do you want to know what are the most important metrics that digital marketers should pay attention to? If so, then follow us and find out more in this blog article.
Best Digital Marketing Metrics to Evaluate Traffic Generation: Clicks, CTR, CPC, and Traffic Source.
Whether launching branding, or performance-based campaigns, the ultimate goal for markers is to generate traffic on the sites (landing pages) and eventually turn their audiences to potential customers. To measure effectiveness of different campaigns, there are several important metrics that marketers should look into.
The number of clicks indicates the traffic generated from campaigns. To be mentioned, due to the different tracking methods, the clicks recorded on the ad server are usually not equal to the visits/ page views on Google Analytics.
CTR (Click Through Rate):
CTR measures how many viewers actually clicked on the ads. High CTR indicates high relevance between the ad creative/landing page with targeted audiences, also shows the efficiency of the different channels in terms of generating clicks/ traffic.
CPC (Cost Per Click):
CPC shows the average cost to bring a click for marketers. Although it seems good for marketer to have a low CPC level, it actually depends since clickers (for example teenagers) are not always those who convert. Marketers should clarify their main campaign goals first to decide which metrics are more relevant to look at.
When marketers launch different campaigns (search, display, retargeting, mobile, etc.), it is important to know the traffic source, i.e. keywords/sites that brought it. This could provide information and allow marketers to decide the allocation of marketing budget strategically.
Best Digital Marketing Metrics to Evaluate Lead Generation: Conversion Rate, CPA/CPL, Bounce Rate, and Rate of Returning Visitors.
Instead of tracking the above traffic generation metrics solely, many advertisers nowadays become performance-driven and put lead generation as the first priority to judge the success of a campaign. Here are some key metrics to help marketers evaluate lead generation. (Please check our online advertising glossary if you don’t understand certain terms below!)
Conversion rate can define your online marketing success no matter if the goal is to convert visitors to sales or gather key information of potential clients (for example, sign-up, etc.).
CPA/CPL (Cost per Acquisition/ Lead):
CPA/CPL defines the cost to generate a new lead, which gives marketers information on how profitable the campaign is to decide if they want to continue or not.
Bounce rate represents the percentage of visitors who enter the site and leave rather than continue browsing other pages. First, marketers can use bounce rate to measures the attractiveness of the contents in motivating visitors to continue their visit. Those visitors who “bounce” immediately should find the content of marketers’ sites/landing pages irrelevant to their needs. Therefore, marketers can also use bounce rate to evaluate the quality of traffics brought by their campaigns to the landing pages and see if those are relevant audiences. High bounce rate indicates campaigns or landing pages that need to be stopped or improved.
Rate of Returning Visitors:
Rate of returning visitors gives marketers insights on visitor loyalty and how marketers can improve and make these audiences who are not converted yet to finally take actions.
Best Digital Marketing Metrics to Evaluate Revenue: ROI, Customer Acquisition Cost (CAC)
Almost all advertisers evaluate the revenues and analyse if they benefit or make losses from their campaigns. Among plenty of metrics, ROI and Customer Acquisition Cost are quite useful for marketers to analyse.
ROI (Return on Investment):
ROI is the most popular metric among professionals to evaluate the campaign performance. Comparing ROIs for different campaigns can help marketers to identify which campaigns/channels are driving sales and revenues.
CAC (Customer Acquisition Cost):
Customer Acquisition Cost (CAC) equals the total advertising costs divided by how many new customers generated from the campaign. This identifies the net cost to acquire an additional customer. Comparing this metric with average revenue generated by a customer could reveal if it is worth to continue the campaign or not.