How can you measure the effectiveness of an advertising campaign?

effectiveness of an advertising campaign

Contextual advertising is an important factor in any marketing campaign. The client sees ads on different websites which may be of interest to him.

But it is important to understand that display advertising does not guarantee a deal in the shortest possible time, but brand awareness is guaranteed to grow, it has a positive impact on the company’s image. So the success of an advertising campaign can be measured not only by the number of sales, but also by other indicators. But here, we need to understand everything in more detail.

CTR

This indicator shows the click-through rate, which means that the transition to the website after seeing an advertisement is reflected. Compiling and analyzing statistics allows you to determine the success of the advertising campaign, and the higher the indicator, the more clients will visit the portal. In addition, CTR can be calculated for each channel individually, so you can see what attracts more clients and what they pay more attention to.

CTR now serves to measure a variety of tools for attracting traffic, it can be:

  1. CR.
  2. Snipets.
  3. Banners.
  4. Buttons with a call to perform a certain action.

And in the end there is an opportunity to build a budget intelligently, after analyzing the data.

But again, it is important to remember that a click is not a purchase, so CTR is not crucial in Google AdWords.

Methods for evaluating the effectiveness of advertising

This is where it becomes possible to track all metrics over time

The essence of contextual advertising is to show ads to a user who is interested in a product, and there is a good chance that he will buy it. And all the data can be obtained based on search history. For example, a user has previously been interested in buying a TV set, and a link to a shop appears where it is possible to place an order. And if the number of clicks is high, the CTR is high. This parameter is influenced by several parameters at once:

  1. The quality of the advertising campaign.
  2. The literacy of the choice of CC and the phrases.
  3. Understanding the basic needs of clients.

Cost per click

CPC is the cost per click on an ad. A metric that allows you to estimate the cost of attracting CA, that is, the amount paid by the advertiser for an effective display ad is calculated by the following formula:

CPC = number of clicks / cost of advertising

There are special platforms for advertising. And after action is taken, the system fixes everything, and funds are deducted from the account of the advertiser. It is important to note the fact that the cost may vary, it all depends on the pricing system selected.

CPA and CPL

These are additional performance indicators you need to know:

  1. CPA is a cost-per-action metric where the advertiser is the interested party.
  2. CPL is the price of getting a customer interested in buying.