With the wide availability of digital platforms that enable automated online advertisements, marketing specialists get access to numerous statistics. Among the myriads of digital advertising metrics available, some stand out as pivotal indicators of campaign performance.
But how do we identify which digital advertising metrics are important and which are not? How does one metric influence another and how do we adjust campaigns based on key digital advertising metrics? Here are the main digital advertising metrics that our specialists at “Lead Gen and CRM” recommend for managing digital advertising campaigns.
1. Impression
Impressions are digital advertising metrics that represent the number of times an ad is displayed or viewed. It’s essentially the first touchpoint between the ad and the audience. It is important to recognise here that displayed impressions do not mean viewed by a real person. All online advertising platforms provide you data on impressions and only some – on viewable impressions that are always less than just impressions.
While high impressions may indicate a wide reach, it is not necessarily the case, below we will explain why. Purchasing ads based on impression count is typically the most cost-effective method; however, it requires understanding how to guarantee the quality of digital advertising metrics, such as the below.
2. Clicks
Clicks signify audience engagement beyond mere exposure. It measures the number of times users interact with the ad by clicking on it. High click counts demonstrate relevance and effectiveness in capturing audience interest. Clicks serve as a bridge between impressions and conversions, indicating the effectiveness of ad messaging and creative elements in enticing users to take action. For digital advertising metrics, there are no standards on the number of clicks expected from the ad, however this KPI should be decided in the planning stage and can be based on the budget and forecasts shown by the advertising platforms.
There are multiple factors that may influence the number of clicks, and ad creatives along with CTA are often the main ones. If you have an option to set up a CTA button on your online ads, make sure you don’t miss this step, as it may dramatically improve your ad performance.
Learn more about metrics in marketing from our article about digital advertising metrics in account-based marketing.
3. Pacing
Pacing refers to the distribution of ad impressions, clicks or spend over a specific time frame. Effective pacing ensures that the campaign maintains a consistent presence throughout its duration, avoiding spikes or falls in activity. It’s crucial for budget management and optimising performance based on real-time data. By monitoring pacing, advertisers can adjust strategies to maximise impact and prevent overspending or underutilisation of resources.
4. Click-Through Rate (CTR)
CTR measures the ratio of clicks to impressions, providing insights into ad performance and audience responsiveness. It quantifies the effectiveness of ad messaging and creative elements in compelling users to take action. A high CTR indicates relevance and engagement, highlighting the alignment between ad content and audience intent. By optimising for CTR, advertisers can refine targeting and creative strategies to drive higher conversion rates.
What should you look at optimising digital advertising metrics for CTR? It can be that ads shown on certain devices such as smartphones perform better CTR. In this case you can increase the bid and budget for those devices. If you have access to the websites (URLs) where your ad is being shown – you can identify which URLs have the lowest CTR and exclude them.
What will you consider as base satisfying CTR? From our experience, display ads for the B2C consumer products, for non-retargeted audience, CTR of 0.2% may be a good one.
5. Video Completion Rate (VCR)
In the case of video ads, video completion rate measures the percentage of viewers who watch the entire ad. It reflects the ability of the ad to captivate and retain audiences attention throughout its duration. A high completion rate indicates compelling content and effective storytelling, maximising the impact of the ad message. Advertisers can use this digital advertising metric to refine video length, content, and placement to optimise viewer engagement.
We recommend aiming for VCR 30-45% in your online video ads.
Read about trends in content marketing to keep your ads and posts relevant.
6. Reach
Reach quantifies the total number of unique users exposed to the ad over a specific period. It is an important secondary KPI especially for video ads, as only impressions cannot truly represent significant impact and video completion rates may be difficult to achieve. Maximising reach ensures that the ad connects with a diverse audience, expanding brand awareness and driving potential conversions.
Here, we revert back to the question we asked at the beginning of this article: why do high numbers of impressions may not necessary be a trustful indicator of success? The answer is in another digital advertising metric – ad frequency. The same ad can be shown to the same person multiple times and each time counted as one additional impression. There is nothing bad in showing the same ad to the same user multiple times, moreover, it can increase awareness and stimulate people to consider purchasing. The key to success is in moderation, and, if you have an option to set up the ad frequency, we suggest not limiting it in case of small audience but do limit it with the cap of 3-6 times if you aim to reach as many users as possible. So that you do not spend your budget on the same person.
Understanding and leveraging key digital advertising metrics is essential for crafting successful online advertising campaigns. Each metric offers valuable insights into different facets of campaign performance. By monitoring these digital advertising metrics closely and iterating based on data-driven insights, you can optimise your online advertising strategies, enhance audience engagement, and ultimately achieve your advertising goals.
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