As the online world continues to grow and envelop many of the aspects of our personal and business lives, it can be difficult for companies to track their online advertising Return On Investment. Particularly so for those industries which are unable to process their entire business interactions online, like real estate.
To identify successful campaigns, I have outlined three metrics to review; CTR, CPConv., CPS.
Click Through Rate (CTR), determines the direct effectiveness of your advertising’s ability to cause an action, whether it be through display content or calls to action. Comparing to industry standards should give a good idea of the quality of the ads.
Cost Per Conversion (CPConv.) is the cost of gaining a lead online. Using proper website analytics, you can figure out the ratio and comparing to your lead to sale ratio, determine if the campaign is efficient.
Finally, your Cost Per Session (CPS), used instead of Cost Per Click, as you should remove the poor-quality traffic, like bounces, from your analytics. This will help you determine the true success of the campaign.
RESEARCH DIRECTOR, PARTNER