What are some of the most relevant digital marketing campaign metrics?
To track the success of a digital marketing campaign, you need to measure the following digital marketing metrics as it will guide your future campaign, analyze the success of current campaigns and help you increase ROI
Website and Landing Page Traffic
Most of the digital marketing campaigns drive traffic to a website or a landing page. It is critical to monitor your website’s traffic, it provides you with insights such as number of sessions, average time spent, best performing campaigns and much more.
Here are few website or landing page traffic metrics:
Traffic Source: In Google Analytics, you can find which source and medium is bringing you maximum amount of traffic. You can determine the best performing sources and focus your energy and digital ad spend only on those channels.
Average Session Duration: The more users spend time on your website, the better are the rankings. Average session duration is a great indicator to find how long users spend on your website.
You can improve this by optimizing UX/UI, add more valuable content, rich media and interactivity.
Bounce Rate and Exit Rate: Exit rate will show you where your visitors left after they viewed your content. This is useful to understand drawbacks in your website/landing page and why users lost interest after spending some time exploring.
Bounce rate is the percentage of people who leave your site after viewing only one page. This can happen because the site may be tool slow, users did not find what they were looking for, technical issues or poor user experience.
Conversion rate = total number of conversions / total number of sessions. A campaigns profitability heavily depends on conversion rate.
Depending on your business objective, a conversion can mean any of the following:
- Making a purchase on the website
- Submitting a form
- Registering for a webinar, sales demo, free sign-up or subscription
- Downloading a digital asset
- Calling your business
- Engaging with your content/website
Why to measure conversion rate?
Conversion rates directly measure the impact your digital marketing campaign has on your business objectives. Your campaign conversion rate can also help you benchmark success for your website/landing page.
This metric is a good way to analyze the value of various audience segments and channels.
Number of Leads
A lead is a person or company with an interest in your brand or the product /service that you are selling.
Generally, this interest is expressed by providing contact information like first name, last name, email ID, phone number via a lead capture form on your website.
Calculating the number of leads acquired through your digital marketing campaign will help measure the success of your digital marketing campaign strategy and estimate the ROI.
Cost Per Lead
Cost per lead = Total cost of campaign / number of leads generated.
The main purpose of this metric is to provide your digital/marketing team with a value figure so that they can understand how much money is appropriate to spend on acquiring new leads.
Cost per lead metric measure the cost-effectiveness of your digital marketing campaign.
The cost per lead metric can be used to monitor campaigns on Google ads, Facebook ads, LinkedIn ads or any other digital advertising platform.
Social Media Engagement Rate
Engagement rate measures the performance of a piece of content on social media platform, such as Facebook, Linkedin, Instagram etc.
Social media engagement rate determines how well the post copy, creative(image or video) and targeting was and defines the success of a social media campaign.
Social media engagement rate = (Total number of interactions on a piece of content / number of users following the account) X 100
Some examples of engagement are likes, comments, shares, retweets and replies.
Email Open Rate
Open Rate = Total Unique Opens / Number of Emails Sent
Email open rate is calculated by dividing the total number of unique email opens by the number of emails sent your contact list.
The average open rate across all industries was almost 30%, but this number varies for each industry.
Click Through Rate
This metric measures the number of clicks advertisers receive on their digital ads per number of impressions. This number is the percentage of people who view your ad and then actually click on the ad.
Click Through Rate = Total Clicks on Ad / Total Impressions
The higher the click through rate you get on your ads, the cheaper the cost per click, higher quality score and increase in campaign performance.
The average click through rate in Google ads is 1.91% for search and 0.35% for display. This is the average across all industries so for your industry, it will definitely be different.
Cost Per Click
Cost per click is the price your pay for each click in your digital marketing advertising campaign.
This is the amount you pay for each each click on Google ads, Facebook ads, Bing Ads or any other digital advertising platform.
CPC is determined by a combination of ad quality, targeting, competition and few parameters.
These parameters differ for each ad platform so it is important to read about those factors before going live with an ad campaign.
Digital marketing campaign return on investment is calculated by measuring sales growth achieved from the ad campaign, deducting the marketing cost and divide it by total marketing cost.
Campaign ROI = (Sales Growth – Marketing Cost) / Marketing Cost
Thus, ROI is calculated using two primary metrics i.e. the outcome generated using the digital campaign, and the cost to achieve that outcome.
So, what is a good marketing ROI?
A 5:1 ratio is a good marketing ROI. If you can achieve this ratio or more than 5:1, then your digital marketing campaign performed very well. This ration covers the cost of marketing, cost of good and have made profit.