It has already been addressed by Digitall Brokers, in the Performance Marketingarticle, that digital communication has the advantage of being measurable and there are several ways to act in this sense.
From the moment you start to act in this direction (Google Ads, Social Networks, Email Marketing, among others) it is necessary to realize what variables and indicators they give us.
In other words, digital communication started to work, and now? How to evaluate them?
We leave below some indicators that should be taken into account in this analysis, whether when doing the analysis internally, or when asking an agency or freelancer to work with you.
Important Indicators (Some)
- Lead – The lead is the ultimate goal of digital communication. This lead can be a contact, a sale, an email that was sent, a phone call that was received. That is, you must determine what your objective is and that will be your Lead. You can have several types of Leads in your business. An online store can have as Leads, the final sale of products, or the completion of a contact form.
- CPC – Cost per click. What is the value of each click when potential customers click on the ads. NOTE: In Google ADS the CPC happens whenever someone clicks on your search ads, and in Social Networks the CPC occurs when someone clicks on the campaigns and ads found in Feed, Stories, etc…
- CPM – Cost per Thousand Impressions. An impression is when your ad is viewed but not clicked on. Example: if you search for something on google, several ads appear, and this “appear” is considered an impression. A thousand impressions why? Because generally, on platforms that use this metric, the charge is made whenever the ad appears 1000 times, and not just for each click.
- CTR Click Through Rate. It is an important metric to understand the “attractiveness” of the campaign. This indicator tells us how many people clicked on the ad VS the number of times it was viewed. The account is easy where CTR = (Clicks)/(Impressions)*100%.CTR depends a lot from business to business but a CTR lower than CTR% is a red light to find out what is going on in a particular ad.
- Conversion Rate Similar to CTR but this time it takes leads and clicks into account. In other words, the conversion rate is the number of leads generated taking into account X clicks. The account here will be Conversion = (Leads)/(Clicks)*100%. The conversion rate also depends from niche to niche, but on average, an online store has a 3% conversion rate.
- Cost per conversion or Cost per Lead (CPL)– Related to the Conversion Rate, it tells us the cost per lead. That is, when it cost me to acquire someone for a sale, for a contact, for a phone call, or another. If €500 was spent on a campaign and it brought 50 leads, then the CPL is €10. Then you do the math to see if the CPL is positive or negative. How? If an online store has a margin of €12 for each sale, then in this case the CPL allowed a profit margin of €2, which would give a positive CPL in this case.
There are many other indicators and variables that will be discussed further on, but for those who are starting their digital communication, you have to have these metrics at the tip of your tongue, as they are the same ones that let you know from the start if you are or not making a good investment.
At Digitall Brokers, consultants are available to help you choose and understand the best indicators for your business, as well as the best campaigns and suppliers.
And this without associated costs.
Take the opportunity to test and simulate your project in the Digitall Brokers simulator and if you need any support or help in your process, you can contact us directly by email info@digitallbrokers.com or using the contact form.
