In today’s fast paced digital landscape, we’re inundated with a plethora of marketing metrics. From clicks to views, conversions to bounce rates, it can be a tad overwhelming. So, which benchmarks truly matter in the digital age? Let’s unravel the enigma.
The digital age has blessed us with an abundance of data. But, with great data comes great responsibility – the responsibility to discern which metrics genuinely align with our business objectives. While surface level metrics like Click-through rate (CTR) and Cost per click (CPC) can be seductive, they might not tell the entire story.
Surface metrics: AKA “Ooh, shiny”
Click-through rate (CTR) and Cost per click (CPC) are often the go-to metrics for a quick pulse check on a campaign’s health. At a glance, they tell you about your audience’s initial engagement. A high CTR means your ads messaging resonates, while a low CPC indicates cost efficiency. But while these metrics can be indicative of awareness, they aren’t definitive proof of deeper engagement or overall campaign success.
Venturing deeper: conversion metrics
Cost per conversion and Return on ad spend (ROAS) are where the rubber meets the road. They go beyond initial interaction, delving into tangible actions. An e-commerce store, for instance, would highly value a solid ROAS, indicating a direct return on every dollar spent on advertising. However, it’s essential to remember that ROAS isn’t the end-all-be-all. Not every campaign’s primary goal is an immediate return; some aim to sow the seeds for future returns.
Keyword performance: beyond the numbers
A campaign’s keyword performance can provide a wealth of insights. High-performing keywords signal alignment with audience intent, but there’s a catch. Over reliance on brand terms, for instance, can skew the metrics. While these terms often boast impressive stats – after all, they’re your loyal audience – they can mask the effectiveness of your broader campaign strategy. Diversifying your keyword approach ensures a balanced and holistic view of your campaign’s reach and resonance.
Tailored metrics for tailored campaigns
Each campaign should have a set of KPIs that line up with its objectives. For instance, while a shopping centre might prioritise ‘shop visits’, an e-commerce platform might lean heavily on ROAS, but it’s essential to keep in mind the broader picture. While these metrics are critical, don’t be blindsided by great CPCs or CTRs if your main objectives aren’t being met. And yes, we consider your brand terms doing all the heavy lifting in order to meet objectives.
The non-negotiables: benchmarking for Success
Every campaign, regardless of its unique objectives, should consider certain non-negotiable metrics. These might include ‘customer lifetime value’ (how much each customer is worth over time) or ‘customer acquisition cost’ (how much it costs to acquire each customer). These metrics give a more in-depth insight into the long-term viability and profitability of marketing strategies.
Balancing awareness and conversion goals
It’s natural to wonder why, with all this emphasis on deeper engagement metrics, we still consider clicks or views. The simple answer? Awareness. For some campaigns, especially those focused on brand building, these surface metrics are crucial. They’re indicative of reach, resonance, and top-of-mind recall. However, they need to be balanced with metrics that track deeper audience engagement and conversion.
A holistic view: interplay of metrics
It’s the interplay of these metrics that offers a holistic view of a campaign’s success. A great CPC might get the ball rolling, but without conversions, the campaign might not be meeting its objectives. Conversely, a higher CPC might be justifiable if the quality of leads and conversion rates are exceptionally high.
In the complex landscape of digital marketing, it’s tempting to cling to easy-to-understand metrics. However, the true measure of success is a nuanced combination of awareness, engagement, and conversion metrics. By understanding and balancing these, marketers can ensure they’re not just chasing numbers but achieving genuine business outcomes.
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