Digital strategies are central to modern marketing for their wide-reach, cost-effectiveness and measurability. Key performance indicators (KPIs) are measurable values that can help you understand the success of your digital marketing efforts. Below are some common KPIs to start monitoring.
Impressions
The first step is to monitor impressions, or the number of times a piece of content has been viewed. While this metric doesn’t account for engagements with the content’s call to action (CTA), it’s important to first understand how far your content is reaching and how much exposure your target audience has with the content. High impressions indicate that your content is reaching a large audience and are an important metric to measure when the aim of the digital campaign is to drive visibility of a product, service or brand.
Click-Through Rate
After measuring your impressions, determining the click-through rate (CTR) will help assess engagement with your content. CTR shows how many people clicked on your ad or content compared to the number of impressions it received. A high CTR means viewers are following the CTA. You can calculate CTR by dividing the total number of clicks by the total number of impressions and multiplying by 100 to get a percentage. For example, if your ad was shown 1,000 times and received 100 clicks, your CTR would be 10%. Measuring the CTR of your content helps assess whether the content you are promoting is resonating with your target audience.
Lead Generation
Following lead generation is a way to track how many potential customers are expressing interest in your brand, product or service by taking actions like filling out a contact form, subscribing to a newsletter, or signing up for a free trial. Lead generation focuses on potential conversions that can lead to sales. In order to effectively measure this KPI, you must determine what constitutes a lead for your business.
Cost Per Acquisition
This final KPI, cost per acquisition (CPA), assesses the effectiveness of your spending on digital marketing efforts. CPA communicates how much it costs to acquire each customer or lead through your digital marketing. To calculate CPA, divide your total marketing spend by the number of new customers or leads generated during a specific period. For example, if you spend $1,000 on a campaign and generate 50 leads, your CPA would be $20. A lower CPA indicates that you’re getting more value from your marketing budget.
Key performance indicators are vital to monitor the success and effectiveness of your digital marketing efforts. Impressions, lead generation, CTR and CPA provide valuable insights into how well your campaigns are performing, and by regularly reviewing these metrics, you can make data-driven decisions that optimize your digital marketing strategy and optimize your digital marketing strategy.
Resources
https://www.wallstreetprep.com/knowledge/click-through-rate-ctr/
https://agencyanalytics.com/kpi-definitions/cost-per-acquisition-cpa
