No matter whether you are trying to see how well your employees are performing or how well a product is selling, metrics or KPI’s (key-performance indicators) are used to benchmark performance. By knowing which metrics are performing well, and which ones are not, one can start to optimize the project, whether it is the performance of employees or a digital marketing campaign. Now, a crucial part of metrics or KPI’s is choosing the right ones for your project. If you have the wrong metrics, you will not be able to derive any meaning from the performance thus you will not be able to act accordingly. With experience one becomes better at understanding what effects performance thus one becomes better in optimizing the project.
In this article, we will go through fundamentally important metrics in digital marketing, so that one could better understand the performance of digital marketing campaigns. In our coming digital marketing optimization article, we will go through tying metrics with analytics and how to make decisions or act accordingly with the knowledge.
Below is a list of common metrics used to measure the performance of digital marketing campaigns. Now, I would love to give general guidance regarding possible click amounts or the average cost of these clicks, however it must be noted that the averages depend on what platform is used, in what country the campaign is running and what is the industry, product or business in hand. That being said, detailed case studies will be published in the future to share our knowledge regarding the above-mentioned.
- Clicks – the amount of clicks your ad receives. One could say they are the amount of visitors that are directed to, for instance your product landing page or e-commerce site. However, some visitors are lost before they arrive to the page due to, for instance, a bad internet connection. Additionally, clicks do not tell whether they are relevant or not because the clicker, or in other words, the visitor might not be interested in your product. Because of this, for instance, the effect of clicks on sales need to be referenced with analytics, to see whether and which clicks have contributed to, for instance a purchase.
- Impressions – the amount of times the people (or robots) have seen your ad. On itself, does not tell much. The amount of impressions also greatly varies between different channels, for instance search advertising has a significantly lower amount of impressions than display advertising.