Whether you are running advertising campaigns or simply tracking traffic metrics, there is a long list of digital advertising metrics that help you keep a close eye on your advertising ROI.
Being aware of the various types of digital advertising metrics helps you better understand, analyze, and optimize your data used for an effective digital ad campaign. Here are seven key Cs of digital advertising metrics to help you measure the success of your digital campaigns.
CTR (click-through rate) is an essential metric that can help you gauge the results you are getting and how effective your digital campaigns are.
When online visitors click on your ad banner, they are redirected to your website. This action is called a click-through. CTR is a comparison of the number of click-throughs with the number of total impressions.
The metric represents the percentage of people who clicked your ad compared to total impressions. For example, if you have 10,000 impressions and 10 clicks, your CTR is 0.10%.
Your CTR depends on many factors, most of which you can control. Elements that significantly influence whether or not users decide to click include ad creative, the call to action, and more.
CPM, or "cost per thousand" ad impressions, is an industry-standard measurement for selling ads on websites. ‘M’ stands for the Roman numeral that represents the value of 1,000.
CPM is the bid amount you pay per one thousand views (impressions) when running ads. Selecting viewable CPM bidding ensures that you only pay when your ads are seen.
Cost Per Viewable Impression
With the cost-per-viewable-impression pricing model, the advertiser only pays for video ad impressions that are considered viewable based upon IAB viewability guidelines.
It is typically sold per 1,000 impressions.
Cost Per Completed View
Cost per completed view is the price an advertiser pays every time a video ad runs through to completion. Rather than paying for all impressions, some of which may have been stopped before completion, an advertiser only pays for ads that finished (CPCV = Cost ÷ Completed Views).
A conversion is a completed activity, and conversions can be either macro or micro. A macro conversion is a completed purchase transaction, while a micro conversion is a completed activity (e.g., email signup) that indicates the user is progressing toward a macro conversion.
A click refers to when a visitor takes action on an advertisement by clicking it with a mouse or tapping it on a touch screen.
This does not mean simply viewing a rich media ad (which would be considered an impression), but refers to actually clicking on it so that the visitor is headed toward the advertiser's destination.
Average cost per acquisition is the amount you have been charged for conversion from your ad. The value is calculated by dividing the total cost of conversions by the total number of conversions: CPA = Cost ÷ Conversions
When it comes to deciding which digital metric or KPI is most important for your business, consider your digital advertising campaign goal.
Hungry for more terms? Check out our OTT glossary here.
The digital advertising industry is continuously changing and growing, which provides exciting, new opportunities for media agencies and advertisers looking to reach engaged and targeted users.
ZypMedia specializes in providing local digital advertising solutions. We can help you and your organization place ads in front of your audience while helping you drive sales and generate a positive ROI.
Learn more about the digital advertising universe by subscribing to our email newsletter today.