Top 10 KPIs That Every Marketer Should Be Tracking – Part 2/2Admin
As we have seen in the 1st part of this blog series, marketing’s Key Performance Indicators (KPIs) help you focus efforts on what’s working and can eliminate or minimize spend on underperforming marketing efforts.
In the first part, we covered initial 5 KPIs namely Return on ad spend (ROAS), Cost Per Acquisition/Cost Per Conversion/Cost Per Action (CPA), Conversion Rate (CvR), Click-Through Rate (CTR), and Cost Per Click (CPC).
Here are the remaining 5 KPIs.
6. Cost Per ThousandViewable Impressions (vCPM)
vCPM is defined as the price paid per 1,000 viewable ad impressions. An advertiser pays only for the “viewable” ads, when 50% of the ad is shown for one second or more.
With the advancement in machine learning and AI, intelligent software has the ability to target the right audience, employing online behaviors to determine audiences’ intents.
With vCPM marketers can now get a better idea of budget percentage when compared to impressions viewed. And because of platform algorithms, marketers get a good estimate of the actual price they are paying for their messages to be seen by their audience on that channel.
7. Earnings Per Click (EPC)
Earnings per click (EPC) is determined by multiplying conversion rate with customer value. For example, if a customer generates $200 with a conversion rate of 1%, then EPC is $2. EPC is an important parameter to be considered for paid advertising campaigns.
Maximizing conversion rate as well as average customer value will lead to higher earnings per click. With a greater portion of the budget allocated to paid marketing campaigns, when this number is optimized as high as possible, you can earn greater profit.
8. Quality Score and Relevance Score (QS & RS)
Quality score is a function of ad relevance and user experience. It is a concept applicable for Google AdWords. Several factors such as keyword relevance, appropriate ad text, click-through rate, relevant landing page, etc. greatly affect quality score. Google rewards you with low cost per click (CPC), with high quality score. Writing relevant ad copy with well-researched keywords will ensure a better quality score.
Relevance score is a metric similar to quality score applicable in case of Facebook Ads. Facebook ad relevance score is the function of ad relevance and freshness, audience’s response and campaign objective. Ultra-specific targeting and appropriate ad copy improves relevance score.
9. Average Rank Position
Ad rank is a function of quality score and maximum cost per impression. Ad position is determined by ad rank. According to Google, the definition of average position is “A statistic that describes how your ad typically ranks against other ads. This rank determines in which order ads appear on the page.” Ads showing on the first page must hold any rank from 1-4.
Quality score and average rank position show whether the ads are relevant. A low-quality score for keywords indicates that the ads, keywords, and landing pages are being rated as irrelevant.
Ad Frequency represents the number of times a person sees any ad. Ad frequency is determined by two factors: Impression & Reach. It has been noted that the frequency is correlated to click through rate (CTR) and cost per click (CPC). Improved CTR with low CPC results in high ad frequency and vice-versa.
However, too low or high frequency adversely affects advertising campaigns. If an ad is shown a low number of times, there are chances that the audience will miss the ad. On the other hand, if the ad is shown too many times, its relevance score or quality score is badly affected.
Goal setting is the key to executing any digital marketing campaign. With clear goals, it is easy to set the KPIs in relation to the marketing campaign in question. There are several other metrics that can be employed to measure campaign’s success in addition to the above listed metrics. It is advisable to choose the KPI’s mindfully and according to the type of marketing campaigns.
If you’re interested to in a solution that tracks KPIs for all your marketing campaigns , eConnect, with its extensive experience with B2B, AI-driven analytics, can help you achieve improved ROI and efficiency. To learn more, please get in touch and our experts would be glad to help.