One of the benefits of working in digital is the level of granularity, transparency, and accountability available for your campaign and marketing budget. Here's an overview of what tactics marketers use to analyze campaign results.
Understanding metrics helps you steer your campaigns in the direction of success, and pivot your strategy when needed. Here are the most common units used for campaign measurement:
Impressions: The number of times an ad was displayed.
Clicks: The number of times a consumer clicked an ad.
CTR (Click-through rate): The percentage of ad impressions that were clicked - calculated by dividing the number of clicks by the number of impressions served.
Conversion: The action a person takes after clicking an ad, intended by the marketing - the action can include making a purchase, filling out a form,subscribing to a service, etc.
CVR (Conversion rate): The percentage of clicks that resulted in a desired action - calculated by taking the number of conversions an ad received and dividing by the number of clicks.
AT WHAT LEVELS DO THESE METRICS HELP US EVALUATE SUCCESS?
Campaign level: Measure how your campaign is doing holistically, across all suppliers, placements, and creatives.
Supplier level: Measure performance based on all campaign placements from an individual supplier.
Creative level: Measure the success of an individual piece of creative, across all placements and suppliers.
Pacing: Measure how an advertiser's budget should be spent relative to time.
How do we apply these metrics to advertising goals and strategy?
Beta testing: If your campaigns routinely use the same set of publishers, placements, and creatives, it's difficult to tell if there is room for improvement and if the metrics you're pulling in time and time again are the best you can do. Beta testing with new publishers that match your target demographic is a good place to start. Trying out multiple creatives for the same placement can also help you hone in on what degree of the placement's success is based on the message, versus the inventory.