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A Simple Guide to Advertising Metrics

From the launch of e-mail, the boom of the Internet and social media, to the new communication channels that are arriving and changing every day, technology continues to play an enormous role in our business lives. Along with the rise of digital and mobile advertising, communication channels such as print media and radio are quickly evolving in the audience and reach, forcing stakeholders to think outside the box and find new ways to keep them from disappearing.

Nowadays, every client and consumer wants and demands to be touched by the advertising campaign, to feel like the messages are personalized for him/her, that they are addressing his/her desire particularly, something that due to the new technologies and the digital growth is becoming more and more possible.

Advertising metrics are the terms used by marketers to measure and track the performance of marketing campaigns. Whether you are planning social media posts, engaging with an active list of email subscribers, running display ads, or even blogging, understanding advertising metrics enhances your understanding of digital advertising practices and most importantly, informs you on what you can do to alter the customer experience and your business performance.

How to interpret advertising metrics:

The objective for every businesses’ digital marketing strategy is growth, by either increasing the bottom-line, the number of qualified buyers, or engagement from your online community. However, for business professionals and stakeholders new to digital advertising, there is confusion about which metrics to track, why they are important and what significance they have towards ongoing marketing efforts. Marketing teams are known to use complex terms to confuse stakeholders to misinform or simply gain a quick buy-in for more resources, here is a simple guide to help you have a basic understanding of how advertising metrics ought to be applied and reported.

  • Understand the goal of online advertising campaigns: marketing goals are built to support the larger business objectives put in place to drive your business forward. An objective-driven advertising campaign relies on objectivity rather than subjectivity which persuades you that whatever tactics are being implemented are likely or unlikely to help your business achieve goals in a clear, specific, and measurable manner. Tying too many ideas without any clarity of the end goal allows diverse factors to interfere with the connection between the performance of said metrics against the one goal that should be of focus. By understanding the goal, you discover the potential outcomes that are likely to dictate its success based on metrics and key performing indicators to show marketing impact.
  • Understand the terminologies of digital advertising: the digital marketplace has moved beyond just being a buying medium, it is now characterized by increased interaction, collaboration, and exchange of experiences. As such the responsibility of digital marketers is to measure the impact of online marketing efforts to see if there is any impact. Getting familiar with the most common digital advertising terms such as Ad Audience, Ad Exchange, Ad Impressions and more, helps you understand what they mean, and under what circumstances they are useful.
  • Understand how the terminologies can be used to report tangible results: now that you understand what the terminologies mean, it is time to connect them with the goal of your advertising campaign. Assuming that you have built a sales funnel within the landing page of your website designed to convert new visitors into customers, you now know to keep an eye on your conversion rate, that is the number of forms fills out of the number of visitors who visited your site, to conclude whether your marketing objectives met or did not meet expectations based on your marketing goals, summarizing whether or not you generated tangible results.

Advertising metrics are critically important to understand because they help stakeholders understand how the success and failure of campaigns affect brand growth. They are continuing to become an essential part of business cycles today and learning them is a great first step of becoming data-literate leaders in the digital marketing industry.

Concerned over the complexity of marketing analytics? Check out how it is practically used in Digital Marketing in our previous post.

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