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How to measure the effectiveness of activities conducted on the Internet?
An online advertising campaign is profitable because it brings benefits to every company and works in every industry. The key aspect is whether the selected advertising forms and communication channels will prove to be a trade lever for a specific business. The general indicator of the effectiveness of advertising campaigns is ROI - the rate of return on investment expenses. Thanks to it, we can calculate how an expense of one zloty affects the increase in profit over a given period.
The measurement system based on ROI largely focuses on effectiveness that is not measurable in the short term, and additionally does not allow for quick actions aimed at optimizing the most important online channels. For this reason, it is worth using ROI in assessing strategic marketing goals. On the other hand, in current activities, narrower performance indicators, i.e. KPIs - from English: Key Performance Indicators, will work much better. When analyzing the results of an advertising campaign, it is necessary to examine individual communication channels and then analyze which of them is the most profitable and which is worth investing more.
KPIs in an advertising campaign to measure its effectiveness
Properly set KPIs have a very significant impact on the company's results and advertising campaigns, both in Google Ads and social media. They provide knowledge about the operation of specific elements of the marketing strategy and help make the right business decisions. Therefore, setting and controlling key KPIs is part of the work of a manager in virtually every department.
What is a KPI and is it worth measuring all performance indicators?
KPIs are key performance indicators, i.e. key measures of actions taken by an organization. By observing them, we can measure the effectiveness of marketing, i.e. identify the most effective actions, change or vnpay database optimize those that are ineffective, and locate problems. Measuring KPIs also provides employees with information about their work efficiency. Properly developed marketing measures should be the basis of every organization.
In internet marketing, you can measure practically anything. Internet analytics (you can read what internet analytics is at and the appropriate selection of analytical tools, which must take into account the parameters to be observed, help here. If we know how to use them, we will also be able to optimize marketing activities in order to achieve the intended effects. Of course, there is a risk that we will get lost in the thicket of all the information. By measuring every factor of activities, we will lose not only time, but also the goal we are striving for. Therefore, it is worth determining from the very beginning what activities will bring us closer to the assumed goals and what we want to measure specifically. What KPIs should we take into account? We can list a dozen or so basic ones, which are essential in the case of campaign effectiveness for a given brand:
Website traffic - users who visit the website are potential leads who can become customers. That is why it is worth getting to know their behavior better, finding out who they are and why they came to our website.
Proportion of website traffic to acquired leads - marketing effectiveness can be measured by a number that tells how many of all website visitors become leads. This ratio perfectly shows how website traffic translates into sales effectiveness.
Conversion Rate - A website should work for us 24/7. It should also constantly attract leads and move them through the sales funnel. Traffic on a website doesn't say much, but it is a necessary element for calculating conversion rate, which is important in marketing and sales.
Proportion of leads to customers - this is a very important measure of campaign effectiveness, as it helps to assess whether the customer goes through the entire purchasing path without any obstacles.
Sales Response Time - The quality of leads gets lower and lower as time passes, so it is in the marketing department's best interest to have the customer contact the sales department as quickly as possible.
Cost of acquiring a lead from a given source - marketers know that lead acquisition metrics must be embedded in context. Their number alone does not mean much and does not determine the success of advertising campaigns, which is why marketing departments are primarily interested in developing a low cost of acquiring a lead, in order to achieve significant growth while maintaining an optimal margin.
Percentage of sales from the online channel - this KPI is very often overlooked, but it is important information for sales managers. By increasing the share of sales in online marketing activities, you can show how valuable the department is to the company and justify the need to increase investment in it.
CLV - Customer Lifetime Value is the sum of revenues generated by a customer for the company throughout the duration of the relationship. The CLV indicator is information about how much can be earned from a given customer. However, this requires comparing the costs of acquisition with the value of the customer. Thanks to this, we know how and how much can be spent on acquiring a lead so that it is profitable for the company.
Social Media Reach and User Engagement - A social media strategy is a huge part of your marketing efforts and allows you to distribute content and interact with potential customers as well as existing ones.
Email Marketing Effects - Email marketing is still one of the basic channels of communication with customers. Each email marketing campaign should be measured and analyzed using KPI marketing.
