Week 3: Advertising Metrics

Hey everyone, If you were not here last week, I delved into the different advertising campaign objectives: awareness, website traffic, leads, and conversions. When an advertiser chooses a goal, they then need to analyze data to make sure their campaign is moving in the right direction. But depending on the campaign objectives, there are certain metrics that should be optimized for. What are these metrics, and which of these metrics should an advertiser optimize for to successfully carry out their campaign’s goal?

CPM, or cost per mille, shows the amount an advertiser pays for every 1,000 impressions of their ad. This metric is very important for campaigns focused on brand awareness, where the goal is to reach as many people as possible. An advertiser can optimize for this by using open targeting. This is a strategy where an advertiser puts little to no restraints on targeting who sees the ad. This allows an advertiser to have a campaign with a lower CPM because a platform like Facebook won’t be charging them a premium to target a narrow audience. 

CTR, or click-through rate, measures the percentage of people who click on an ad after seeing it. It’s a crucial metric for advertising campaigns with the goal of increasing website traffic. If a campaign’s goal is to drive traffic, an advertiser focuses on increasing the CTR by having engaging creatives and effective audience targeting. 

CPL is a metric that measures the cost per lead. This metric is essential for campaigns focused on lead generation, such as email sign-ups or form submissions. Additionally, CPA, or cost per acquisition, determines the cost of acquiring a customer or completing a specific action, such as a purchase. It’s an important metric for measuring the profitability of a campaign, particularly in conversion-focused initiatives. Similar to other metrics, an advertiser can optimize both CPL and CPA by having effective creatives and audience targeting.
But how can an advertiser have effective creatives? Well I will cover that in next weeks blog. Thanks for tuning in!