How to Read and Understand Paid Campaign Performance

To read and understand paid campaign performance is an important component of a successful advertising strategy. When you measure the paid advertisement performance of your marketing campaign, you can use the data to execute better marketing strategies. Instead of just focusing on one or two metrics and limiting yourself that way, you should focus on a multitude of different metrics.

Which Metrics Should You Track?

To understand paid campaign performance, you need to have certain markers in place to make sure that you are getting the most out of your data.

Impressions

Impressions help you measure how many times the ad was displayed on the screen by tracking the number of users who could have seen your ad instead of the actual view count. Low impressions indicate that the ad is not reaching as many people. If you are targeting very specific users, low impressions are expected. However, you should get a greater number of impressions if your objective is to attract a greater number of individuals.

Click Rate

The click rate is referred to the number of people that have clicked on your advertisement. This is important because if people click on your advertisement, it means that they were drawn to it enough to take the next step.

Click-Through Rates

You can get the click-through rate by subtracting your impressions from the click rate. It shows the number of people who clicked on the advertisement out of all the people reached. This percentage shows how effectively the advertisement is reaching people.

Cost per Clicks

The CPC is the cost the company has to pay every time someone clicks on the advertisement. This can vary depending on the keyword, so the CPC can be customized according to the term you are targeting.

You should determine the price of every keyword based on how willing you are to pay for the keyword.

Conversions

Once viewers of your ad have arrived at the landing page through the ad, the next step is to convert them into paying customers. Conversions are calculated according to the number of people that take the action the owner wanted them to take. All of this depends on your goals.

Conversion Rate

The conversion rate reveals the number of people who clicked on the ad and then converted on the offer. It is derived by dividing the conversions by the number of clicks you received. High conversion rates indicate that users want the offer you have made, and that you were able to encourage them to take desired actions.

Cost per Conversion

The cost for every conversion highlights the money that your business has spent on the advertisement campaign in comparison to the people who converted. You need to divide the cost by the number of people who converted during the advertisement campaign.

The cost per conversion should ideally be low since that will indicate you are getting many conversions despite spending a limited amount of cash. It can mean that the money that you’re spending is working and that the ads are getting a lot of high-quality leads for the website.

As we stated at the start of this blog post, to understand paid campaign performance, you first need to understand how these metrics work. This will give you a better idea of how the paid advertisements are working so that you can continue to adapt and change them, which will result in higher traffic.

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