Let’s take a look at 5 key metrics every advertising agency should focus on to ensure success:
1. Click-Through Rate (CTR)
CTR measures how often people click on your ad after seeing it. A high CTR means that your ad is interesting and relevant to your audience. You can calculate your CTR by dividing the number of clicks by the number of impressions. This metric is important for working out the effectiveness of your ad copy and design.
2. Conversion Rate
The conversion rate measures how many clicks lead to what you want out of the interaction, like purchasing your product or signing up for your newsletter. Keeping an eye on this metric can help confirm that your campaign is not only driving traffic but also successfully converting visitors into customers. A low conversion rate could mean there are issues with your landing page or offer.
3. Return on Ad Spend (ROAS)
ROAS evaluates the revenue generated from each rand spent on your advertising campaign. To calculate your return on ad spend, divide the total revenue by the amount spent on your advertising.
4. Cost Per Acquisition (CPA)
CPA tells you how much it costs to acquire a new customer. You can calculate your CPA by dividing your total ad spend by the number of converted leads. By watching this, you can see how well your ads are working and make changes to cut down on extra costs.
5. Impressions and reach
Impressions represent the number of times your ad is displayed to users. Reach is how many people see the ad. Although impressions don’t directly measure engagement, reach is good indication of how many unique users have been exposed to your ad. A higher reach means your ad is being seen by more people, while impressions indicate how often it appears, even if the same person sees it multiple times.
Gathering and making use of these metrics can help you understand where your ads need work, if they’re reaching the right people, and how well your campaigns are doing.
