You can reach a target audience or a specific demographic in several ways in today’s marketplace. One of the fastest options is to invest in paid media.
Search engine optimization is considered a “free” option, while buying a specific advertising space or bidding on impressions is considered “paid.”
Unlike organic methods, which take time to build up, paid media can bring immediate traffic to your website or landing page. The platforms providing this service offer robust targeting options. You can focus on specific locations or interests, ensuring your ad reaches the right audience.
Even if people don't click on your ad, simply displaying it increases visibility and helps build brand recognition.
Key performance indicators in this category are used to measure the effectiveness of your business’s paid advertising campaigns. This data helps you understand how well these investments engage with your targeted audience and covers several categories, including sponsored posts, pay-per-click ads, and banner advertising.
Your digital marketing report puts this information into an easily consumable format to gather valuable insights. Catchr helps you get this data with Google Sheets and Looker Studio to assess each outreach effort's pros and cons quickly.
Tracking the best key performance indicators for your paid media campaign can help you unlock potential growth opportunities. You can spot weak areas of the investment, retool your creatives to deliver a stronger message, and provide an outstanding value proposition.
Although each business has unique requirements to consider, the following KPIs deliver the data you need to find a path forward.
CTR is a classic KPI to track in almost any digital marketing effort, and for good reason. It shows the percentage of people who clicked on an ad after seeing it.
A high click-through rate suggests that your ad resonates well with the audience. When you pair it on the digital marketing report with conversion activities and other metrics, you can see the effectiveness of your investment.
Improving this metric lets you get more value from each investment while delivering confirmation that your message resonates with the targeted audience. If you have a low CTR, the following steps can help you see some improvements in future digital marketing reports.
Improving your CTR requires a mix of data analysis, creative writing, and ongoing optimization. It is a dynamic process, but your sweat equity will pay off when you find the right combination. Remember – each click earned is a potential customer!
How much are you paying for each click you earn from your paid media? CPC helps you understand this information to see if the budget outlay makes sense.
While lower costs per click are generally good because your money can stretch further, it's not the end-all data point that makes or breaks your campaign. You could have a low CPC and conversion rate, which is not a positive outcome.
If you want to keep your paid media KPIs in check, reviewing your CPC information is an excellent place to start. Here are some ways to get this expense under control or down into a more acceptable range.
Reducing your cost per click focuses on optimizing the efficiency of your ad spending. By focusing on the elements that could benefit from improvement, you don't need to cut corners while being more innovative with your money.
This KPI tracks the cost your business incurs for each successful conversion. If you’re selling products or services, this number should be lower than the profit you make from the sale.
Let’s say your total paid media campaign generates $57,000 in revenue for a cost of $31,000. That means you’ve created $26,000 in profit from those investments. If you had 1,000 total customers for those figures, your cost per conversion would be $31.00.
Now, imagine what could happen if you could get 10,000 customers producing the same revenue while keeping the total cost at $31,000. Your profits could skyrocket!
It is easy to feel comfortable when your paid media creates profits. Are you maximizing that cash flow? Google Sheets and Looker Studio can help you catch this data point on your digital marketing report with Catchr’s help effectively.
Improving this paid media KPI is a common goal for businesses in almost every industry. Here are the steps to follow.
Once you’ve taken these steps, don’t forget to adjust your bids based on the performance of keywords or demographics. If a certain one converts well but costs too much, you might want to lower your offer slightly to see if you can maintain performance while reducing costs.
Tracking this key performance indicator allows you to see the percentage of clicks that result in desired actions.
What you decide is a positive outcome counts as a conversion. It is often a sale, but it could be a newsletter sign-up, a click to a specific landing page, or anything else that helps your brand grow.
A high conversion rate usually means your landing page and ad are doing their jobs well.
ROAS gives you a broader picture of your paid media investment. It's the revenue generated for every dollar (or euro, pound, and any other currency) spent on advertising.
A ROAS of 3, for example, means you're making three dollars for every dollar spent. The higher you get this metric, the better your bottom line will be!
Several factors go into this metric, including ad quality, targeting, product pricing, and seasonality. Each element works independently or combined with the other to raise or lower the data found on your digital marketing report.
Since a low ROAS indicates your paid media campaign could use some adjustments, these strategies could boost you when needed.
This paid media KPI is a comprehensive indicator of how effectively you use your advertising budget. It encompasses various elements, from ad quality and targeting to pricing and seasonality.
Paying close attention to its changes can help you see more of what works and what needs improvement so that you can continue growing.
This KPI tells you the percentage of impressions your ad received compared to the total number it could have gotten. It helps you gauge market share and visibility.
Think of it as a way to see how often your ads could show up compared to how often they appear. It’s a window into marketplace visibility.
Although it often flies under the radar, its value is substantial when included in your digital marketing report. A high number here means you're dominating the space so that you can review your ROI and overall spending efficiency.
Several elements can impact this KPI.
Spending more can help to move this metric upward quickly, but you can take other steps to improve it. Consider refining your targeting settings as one of your first steps. Showing your ad to a more relevant audience can increase engagement, improving both Quality Score and Impression Share.
Google Ads uses this information to gauge the relevance and quality of your ads, keywords, and landing pages. A higher number can lead to lower CPC numbers and better ad positions.
It is given on a scale of 1-10, with a 10 being the best possible score you can earn. To assign this figure, this metric looks at your keywords, landing pages, and ad quality.
A higher Quality Score can lead to lower costs and better ad placements. Conversely, a low figure can make your campaigns less effective and more expensive.
If you have a low score and want to improve it, consider taking the following steps with your paid media campaign.
Keep an eye on this KPI and adjust as needed to keep your scores high. Even if you can only achieve a small increase, the cost savings could be substantial – not to mention the better positioning you receive.
Although there can be dozens of different data points to track on a digital marketing report, these KPIs stand out because they are integral to your success.
Start by figuring out which KPIs align most closely with your business goals. Once you have a place to begin, you can set benchmarks for your business. Regularly monitor the metrics and adjust your strategies accordingly so that your advertising investments deliver consistent value.