A marketing strategy without a deep analysis of metrics is like swimming in the ocean with your eyes closed. Successful marketing is based on understanding how your audience perceives your advertising messages.
Why is it important to analyze key advertising indicators?
- Budget efficiency: Knowing where your money is going, you can determine which advertising channels are performing best and direct more resources there.
- Interaction evaluation: Understanding how your audience perceives your ads (through CR, VTR, etc.) helps you improve your message and design.
- Return on investment: With ROAS and ROMI, you can determine what part of your ad spend is generating revenue and what part is not.
- Customer engagement: Metrics such as CPA and CPL allow you to determine how much it really costs you to acquire a new customer.
- Strategy improvement: With data on the effectiveness of your campaigns, you can adapt your methods and approaches to achieve better results in the future.
- Content optimization: By analyzing bounce rates, you can understand where changes are needed on your website or in your ads to retain users.
Key indicators to help you along the way
- CPM (Cost per impression / Number of impressions) * 1000: The price of a thousand impressions, which shows how efficiently you spend your money.
- CPA (Cost per Ad / Number of Targeted Actions): The cost of getting a customer to perform a certain action.
- CR (Number of targeted actions / Number of visitors) * 100%: The percentage of visitors who convert into customers.
- CPL (Cost per lead / Number of leads): The amount of money spent to acquire a lead.
- CPO (Cost per impression / Number of orders): How much it costs you to attract a customer.
Here's a fact: According to research, 40% of companies do not know their real CPO. Therefore, it is important to not only track these metrics but also understand them.
Example: Imagine a restaurant that spent 10,000 UAH on social media advertising and got 100 new customers. If one customer spends 300 hryvnias on average, the total revenue is 30,000 hryvnias. Taking into account expenses, the ROI is 200%. But to increase ROI, it's important to know and optimize the cost per customer.
To maximize results and minimize costs, use BudgetMaxx. Our service will become your indispensable assistant in the world of marketing metrics.