Are you ready to start advertising?
When setting up a campaign, you will soon be faced with dozens of statistics; it is not surprising that you can no longer see the forest for the trees.
By working your way through all those different charts and columns, you can make the most of the performance of your ad campaigns and monitor them closely. This way, you create a complete picture of the strength and weaknesses of your advertisements, and you can influence the success of your company based on crucial statistics.
Which statistics are really indispensable for your company? We will highlight it for you!
The importance of statistics
The value of statistics does not necessarily lie in the numbers themselves, but in how you use these metrics to your advantage. By consistently monitoring the performance of page messages and ad campaigns, you get the most out of your campaigns and never leave your opportunities to ‘fate’ again.
However, collecting and analyzing data alone does not bring you closer to a high number of clicks; taking action based on numbers is where your strength as an entrepreneur really lies.
The most important statistics
But how do you go about analyzing and which statistics are really important?
We will guide you every step of the way.
The Return On Investment – ROI
The ‘Return on Investment,’ or ROI, is an extremely important statistic.
After all, this percentage tells you how much turnover your marketing efforts generate, and, therefore, whether your campaign has the desired effects. The ROAS, or ‘Return on Ad Spend,’ is often seen as the protagonist within the figures. This statistic shows the sales made divided by advertising costs.
Cost Per Click – CPC
The CPC gives an indication of what you pay per potential, clicking customer.
When analyzing and processing this statistic, a rule of thumb is that the costs at the top of the funnel (low-threshold actions such as clicks to blogs, etc.) should be below the euro. Preferably around 10 to 50 cents, but this varies greatly per market
As you enter the funnel deeper, and the value of clicks increases (think of leads or webinar registrations), the CPC may increase as these clicks immediately generate profit with the right ad.
Click-Through Ratio – CTR
The CTR is also a percentage and shows how many of the potential customers who see your ad actually click on the ad. When the CTR is high, this means that you have the right combination of advertisement and target group and are on the way to success!
Cost Per 1,000 Views – CPM
The CPM shows the average cost per 1,000 ad views. This can vary per target group and is also very dependent on the existing competition. The CPM is calculated based on supply and demand and can, therefore, like the market itself, differ from one day to the next. Moreover, a higher CPM is not necessarily bad, as long as the target audience is of value.
Conversion statistics are also very important, as this approximates the effectiveness of your landing page in percentage terms. For example, as a webshop, you can get a lot of clicks but still see few conversions, which indicates that something is wrong.
- Go through the landing page
Go through the entire process based on several checks:
- Is there a Call To Action (CTA) at first glance?
- Make sure that a lot of the following elements are present: Social Proof, Authority, Benefits, Figures, Scarcity, Time pressure, Consistency, and Sympathy.
- Low CTR? Your ad is not addressing the chosen target group, or you are trying to target the wrong target group. Change your offer, your target group, or possibly your advertisement.
- A very high CPM? Check your analytics, change your target group settings, or try to target a completely new target group.
- Make sure the ad fits well with your landing page and lower the thresholds as much as possible.
- Does a Facebook ad create less conversion than, for example, a blog on your landing page? Try to direct potential consumers to your blog and retarget from there with a Facebook ad.
So, instead of focusing on likes and comments, focus solely on metrics that effectively represent business results. This way, you interpret statistics based on your success as an entrepreneur, and you easily gain insight into what undermines and supports your company’s growth. This way, you can adjust when necessary, and successful upscaling becomes possible faster!