What you don’t measure can’t be improved. Results are important when it comes to advertising for clients or your business. It can be overwhelming to track so many things that it becomes overwhelming. But not anymore. Let’s discuss the most important advertising KPIs and how to track them.

Advertising is usually a job that requires you to manage a budget. You also have the responsibility of driving new customers into a company. Whoever you report to, will want to see progress through the form of certain metrics. Choosing those digital Marketing Metrics is critical for several reasons.

  • Past performance: Which advertising campaigns worked and which failed?
  • Predicting future outcomes: How much ROI can you get from advertising in future
  • Recognizing what works and what does not

What advertising KPIs should you track to determine if your campaign is successful? We have gathered 10 of the best examples to inspire you today.

Top Advertising KPIs to Track Successful Advertising Campaigns

1. ROAS – Return on Ad Spend

Many marketers believe ROAS to be one of the most crucial advertising KPIs. It shows whether your marketing campaigns and efforts have been successful. It tells you how much money it is possible to make by investing a specific amount. If you invest $1 in advertisement and get $2 back that’s a 100% ROAS, it’s an incredible result.

It’s easy. You need to know your ROAS in order to determine if you are getting more out of your investment. Your performance will be better if your ROAS is higher. This KPI is used to measure how much revenue you generate for each dollar you spend.

You’ll find that executives and CEOs will be fond of this KPI because. It can instantly tell them if marketing campaigns are successful or not Without digging into more specific metrics.

Also read: Top 30 Advertising Ideas You Can Start With for Your Campaign

2. CPA – Cost per Acquisition

CPA refers to the cost of acquiring one user, regardless of whether they are paying customers or not. Your CPA includes marketing, sales, and sometimes the salaries of these teams. To be profitable, your CPA should be kept as low as possible.

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Both the Google Ads metrics costs per conversion and acquisition can be used interchangeably. They are not compatible. Conversion is only one part of the funnel. The acquisition encompasses all steps necessary to acquire a new customer.

You will generally see the cost per conversion when you view reports and the cost per acquisition when you bid for terms. KPI reporting tool can be used to create reports. The cost per action is a Facebook KPI that tracks the actions taken by people who clicked on your ads.

The cost per acquisition shows the financial impact of your ads campaigns and gives you an indication of your Return on Investment.

Marketers agree that it is important to reduce cost per conversion. This KPI can be used to inform your marketing strategy.

You can calculate the cost of acquiring a new client or customer on a per-channel basis to help you analyze and create new strategies and marketing budgets, as well as determine how much to spend to purchase them.

3. CAC – Customer Acquisition Cost

This KPI shows how much you spend on a paying client. It’s not the same as CPA. To give the best price for your product or service, you must know your CAC. This metric is linked to Lifetime Value, or LTV, which is the expected revenue from an average customer during their lifetime.

These two metrics should be approximately 1:3 (CAC/LTV). Your CAC should therefore always be significantly lower than your LTV in order for your business’s success. This means that you should only spend a fraction of what the customer is willing to spend on you in order to make them a paying customer.

4. Conversion Rate

How to calculate your conversion rate? Divide the number of your conversions by your clicks. This is expressed as a percentage. The average conversion rate of an online business has been around 2% over the years. This means that your website will convert approximately 2% for every 100 visitors.

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Your business model and the funnel will determine what a conversion looks like. You can convert a sign-up to a free demo, a booking demo, or an upgrade from a trial to a paid customer.

Knowing who is converting and What’s working can help guide you in making the changes necessary to improve your ROI. Low conversion rates are indicative of something that needs to be fixed: your offer, messaging, placement, or even the entire funnel. It’s a great starting point for further marketing research.

5. CTR – Click Through Rate

This KPI measures the number of users who click on an ad compared to the total number of users who saw it. High click-through rates indicate that your ads are driving many people toward your offer.

You get more clicks if you promote something that is more popular than others. Conversely, a low CTR means that you are not sharing content that is interesting enough to your audience.

Your CTR can be affected by many factors, but you should concentrate on the messaging and offer. In the case of PPC, Your CTR will also be affected by the keywords you choose.

6. CPC – Cost per Click

This KPI shows how much you spend on each click of your ad. Your CPC should be as low as possible. Because of their high competition, keywords that are good often have a high CPC.

7. Quality Score

The most crucial KPI for PPC marketers is the Quality Score. It shows the relevancy and quality of your PPC ads as well as keywords. This metric is necessary in order to determine your CPC, and ad rank.

You can rate your site from 1-10 – the higher the rating, the better. Good quality scores can have a positive effect on impression shares and ad costs. This ranking is typically between 7 and 10. This means that you pay less for Google ads. You will need to pay more for a low-quality score and a ranking lower than 7.

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Also read: 12 Recruiting KPIs to Measure Your Organization Success

8. Frequency

This KPI measures how many unique users have seen your ad. This KPI is calculated by multiplying your total ad impressions with the ad reach. This information will help you determine if your audience is exhausted and whether or not you need to continue optimizing a particular sales funnel or ad copy.

A high frequency of retargeting increases the likelihood of ad fatigue, and lower performance. Retargeting audiences requires the ability to track frequency. This will allow you to see if your ads are being wasted and annoying your audience.

9. Website conversions

You expect a user to interact with your ad and take another action on the website. This could include making a purchase or adding an item to your cart.

Website conversions allow you to see what actions users take after clicking on your ad. This information is crucial as it allows you to determine if you are targeting the right audience.

It is possible to have 10,000 visitors click on your ads every month, but they bounce away because they aren’t interested in your product or service. This is worse than only 100 website visitors who find your content useful and are interested in your product or service.

Website conversions show you whether people who visit your landing page take some action such as submitting a form or making a purchase. If they don’t take any action, optimize your campaign and reevaluate the targeting strategy.

This KPI is important because it reveals the intention and behavior of your audience.

Last Line — Top Advertising KPIs

You can track many advertising KPIs that will help you ensure your business and advertising campaigns are successful. These KPIs are the most crucial to determine if your business is moving in the right direction or wasting time and money.