You are aware that performance marketing is based on actual/data-based results, which helps in better decision-making. But how do performance marketing companies evaluate such campaigns?
This blog is intended to provide detailed information on the metrics and analytical tools that are used for evaluating the performance of a campaign.
Key Metrics used
Impressions and Clicks
A basic approach to evaluating your performance marketing campaign is to check on impression and click metrics. Impression reflects upon the number of times the advertisement was actually displayed. On the other hand, clicks reflect upon the number of times, a user has intentionally clicked the advertisement.
For instance, the performance marketing company placed a banner for your brand on a webpage. Hence, the number of times, it came on screen is the impression, and the number of times the user clicked on the banner is the click rate.
Click-Through Rates (CTR)
It is an advanced metric that justifies the impression and click rates. It is readily available over the analytical platforms and can be got by dividing the total number of clicks by ad impression. Hence, it can provide comparative data about how many times the ad was viewed and be able to influence users to click on it. A campaign with a high CTR reflects upon the efficiency of the campaign, and the engagement ability of content.
Conversion Rates
It reflects upon the number of clicks that have actually been engaged or have been converted. As it is not important that every click made by the user was intentional and led toward a sale. Hence, evaluating conversion rates can help to understand the ability of marketing campaigns to influence users. The conversion can be evaluated in any form, i.e., may lead to product sales, signup for a newsletter, or raising a product/service query.
Return on Investment/Return on Advertisement Spend (ROI/ROAS)
It is a metric that helps the performance marketer to calculate the revenue generated from the investment made over the advertisement campaign. It helps performance marketers to determine the profit generated through a single advertisement campaign. Such can be evaluated based on the sales that have solely been generated through the campaign in comparison to the investment being made.
Important tips to consider while tracking and analyzing data
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Compare the data with the previous period:
It is important for the performance marketer, to know about the growth the campaign has provided over the period.
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Compare the actual and planned marketing performance:
Before implementing the campaign, the brand must have planned figures that were to be achieved. Hence, comparing with the plan can help to identify any gaps or challenges associated. Based on which the improvements can be made.
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Segregate the marketing campaigns and data:
A brand at a point in time, runs multiple campaigns to ensure better brand reach. Hence, during data tracking and evaluation the campaigns and their results should be segregated.
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Rely more on data rather than information:
The analysis process should be data-oriented. It means that any assumptions or theoretical information should be avoided. As the numerical data can provide more authentic and real-time data, based on which further changes/improvements in marketing campaigns can be made.
Conclusion
From the information, it can be concluded that there exist several metrics and analytical tools for evaluating a performance marketing campaign. An experienced performance marketing agency makes a planned use of such metrics to provide you with maximum results. For your performance marketing needs, you can connect with our professionals at Verve Online Marketing. We have a team of experienced marketers who can help you with different digital marketing services depending on your brand needs and requirements. Verve Online Marketing operates with the aim to provide quality and satisfactory services to our clients.
