Trying to decipher whether your efforts are hitting the mark can leave marketers feeling a bit lost. How can you be sure that your strategy is measuring up? This is where metrics come to the rescue! 

You have to be tracking the right ones.

Quantifiable measurements are not just numbers on a screen; they're the pulse of your ad campaign. Understanding them is akin to decoding the secret language of your audience's response. It's about more than just collecting data; it's about extracting meaning from it.

From ad impressions to ROI, we'll uncover the metrics that can validate your hard work and also serve as a canary in a coal mine telling you if it's time to make changes to your ad strategy. 

The metrics to track are:

1. Ad Impressions

Simply put, impressions are the number of times people saw your ad. While impressions alone do not ensure success, you certainly can’t succeed without them. This metric provides a crucial starting point for analyzing your campaign performance. It’s also vital for strategy optimization. 

For example, if you have a low impression rate, this may indicate that the keywords you are bidding on are not popular enough. It’s possible too few people are searching for them, so your ads are displaying to a group that’s just too small. It could be time to try new campaign keywords with larger search audiences. Alternatively, a low impression rate could mean that your budget is too low. As a result, other companies are outbidding you for the same keywords. They’re paying more so their ads are showing instead of yours. 

Most ad platforms follow a predictable bidding strategy, including Google and LinkedIn. Read up on the platform you’re using for insights on how to bid more competitively or select lower-cost, higher-performing keywords. 

2. Click-Through Rate (CTR)

CTR is the unsung hero of advertising metrics. It's the ratio of ad views (impressions) to actual ad clicks. It’s a good litmus test for how engaging your ads are. 

Clicks ÷ Impressions = CTR.  

A high CTR indicates that your ad copy, graphics, and targeting are striking a chord with your audience. Conversely, a low CTR signals that it might be time to tweak your approach. While different click-through rates can be expected across industries, the global internet average CTR is .05%. This means that most ads likely receive 1 click out of every 2,000 impressions. Anything higher than this is considered above average. 

3. Conversion Rate

Ah, the sweet victory of conversions! This metric measures the percentage of users who complete a desired action after viewing your ad—whether it's making a purchase, filling out a form, or signing up for a newsletter. It's the ultimate reflection of how effective your ad is at driving the intended action. A high conversion rate signifies that your ad is not only attracting attention but also inspiring action. 

4. Marketing Qualified Leads (MQL)

In the world of advertising, not all leads are created equal. Enter MQLs—leads who have indicated an interest in what a brand has to offer based on marketing efforts or is otherwise more likely to become a customer than other leads (Tableau).

If you haven’t already, it's a good idea to implement a lead scoring system to determine what counts as an MQL for your company. You can do this using Salesforce, HubSpot, or Marketo, just to name a few. 

By tracking MQLs, you identify potential customers and tailor your marketing efforts to nurture them toward conversion. Each MQL is a stepping stone towards greater profitability so it's important to seriously consider this metric. 

5. Return on Investment (ROI)

Last but certainly not least, we have ROI—the ultimate measure of advertising success. ROI calculates the overall profitability of your advertising efforts.

(Total income ÷ Total cost) X 100 = ROI

A positive ROI indicates that your campaign is delivering more value than it's costing you—that's always the goal! On the flip side, a negative ROI means it's time to reevaluate your strategy. So, crunch those numbers and ensure every dollar spent brings you closer to your marketing goals.

Armed with the knowledge of these critical advertising metrics, you’ll have the power to prove the value of your hard work and optimize your strategy for continued growth and success. 

Not a numbers person? Let us help you measure and analyze your marketing efforts to improve the effectiveness of your marketing strategy.