We all know that advertising is a great way to get more customers, but it’s also incredibly expensive.
Most companies spend thousands of dollars on advertising each month, but they have no idea if their ads are effective or not. This means that most of these marketing dollars are wasted on ineffective campaigns and channels.
This article will help you learn how to measure advertising effectiveness by using five simple strategies. These strategies work whether you’re running ads on social media platforms like Facebook or Instagram or other websites that contain advertisements, such as blogs and news sites.
How to measure advertising effectiveness?
Set a Specific Goal
Set a specific goal for how you want to measure advertising effectiveness.
A good example would be how many sales were made, how much revenue was generated or how many leads were interested in your product. Once you know what the goal of the campaign was and how it is going to benefit your business, you can determine how to measure advertising effectiveness.
Analyze Site Traffic
One of the first things you need to do before measuring how effective your advertising was is look at how much traffic it generated. This will tell you how many people were exposed to your ads and how long they spend on the site after clicking the ad.
Break down how many visitors this site has had in total or how many people saw which ad and how many actually clicked on it and stayed on the page for a set amount of time.
Review Lead Quality
Lead quality is an important factor in determining the success of your marketing efforts. It should be determined by looking at how likely leads are to turn into customers, and there’s a few different ways you can measure this:
- Assess the types of pages they visit: For example, how many product pages they view as opposed to blog posts.
- How much time they spend on each page: Are they spending seconds or minutes looking at your website?
- How did they find the page: Did they come across your page on social media or via a search engine?
Analyze Key Metrics Before and After the Campaign
Analyze how the number of people who complete your desired action has changed over time, how much traffic to your site is from ads and how much revenue was generated.
By looking at how these key metrics changed before and after the campaign you can determine how effective it truly is.
Survey Testing
Getting feedback on how your audience felt about the ads is important as well.
Surveys and polls can give you a sense of how interested people were in what was being advertised and how they responded to specific aspects of it such as how visually appealing it was, how easy it was to find information or how interesting the content within it was.
While this might not completely show how effective the ad was or how many people saw it, this can provide insight into why certain campaigns worked better than others.
What are some metrics to track?
CTR (click through rate)
Are your ads getting as much attention from potential customers? If so, it’s time to up the ante with an enhanced campaign.
A low click-through rate (CTR) can be a major problem for advertisers because this means that there are more clicks than views; meaning less exposure which results in underperforming ad campaigns!
It is imperative you monitor both metrics closely and adjust accordingly if need arises – otherwise all of those high priced advertising dollars may end up going down the drain anyways
CPC (cost per click)
What is the cost you are paying for someone to click on your link? This amount is calculated by looking at how much a campaign has been advertised, divided by how many people clicked. If this rate of return isn’t satisfactory then something needs fixing – either with advertising or design!
CPL (cost per lead)
When your campaign objective is lead generation, this can be the cost that you pay to acquire a client. You need to understand how many leads will generate in order for business; then what their value on average and at minimum wage per hour before deciding if it’s worth spending too much time or money with someone who doesn’t meet those criteria.
It may also help keep costs down since ROI becomes more important than ever- not just getting as many customers possible but making sure each customer has enough value so they’ll become loyal shoppers which generates even better results overall!
CPA (cost per acquisition)
This metric will tell how much it costs to acquire one new customer while CPA (cost per acquisition) can help determine how much you’re spending to get each lead which is how many people clicked on an ad.
You need to have a good campaign objective if you want your ROI (return on investment) numbers, which show what percentage of the money spent is returned as revenue.
This means that when new customers come in through an ad or social media post and make purchases with their credit card it should be enough for them not just pay lip service but really get down into how they can help drive business forward using social marketing strategies tailored specifically towards customer acquisition:
CPS stands for cost per purchase while CPP shows earnings from each sale divided by total spendings within any particular period – so these metrics will tell us whether ads generate ticket sales too!
Once you have a clear understanding of what drives your advertising success, it’s easy to measure the ROI with Facebook and Instagram ads.
Why do we need to measure effectiveness in the first place?
If you measure how your customers respond to certain ads and how the money spent was worth it, you can then focus more on how to help generate targeted traffic that converts into loyal customers.
Knowing how your ad performs and if it generates any value for your company can be just as important as how much revenue is generated from each campaign!
By tracking how much traffic the ad gets and how many times people clicked on it, you’ll know what works well but also how effective those advertisements really are.
Once you have a clear understanding of what drives your advertising success, it’s easy to measure the ROI with Facebook and Instagram ads.
How can you improve your campaign to achieve better results?
Create custom conversions
Once you sign up for a Facebook business manager account, you can create custom conversions to track how many people purchased products or how many new customers came from a particular ad.
This will help show how much money is being made and how effective the campaign is in generating interest which means less wasted time and effort trying out something that didn’t work well at all!
Compare reality to predictions
Social media ads are great for how to achieve the right results in marketing strategy at affordable rates, but how do you tell how many clicks or views will really generate how much revenue when it’s not enough just to trust your gut?
By using Facebook’s ad planner or Google’s display network custom affinity audiences, you can create an estimation of how well your ads perform according to keywords.
You can even target people who already like your page since if they already think enough of your company, there’s a good chance they’ll become customers too!
Understand key advertising metrics
Social media ads are a great way to build organic reach and engagement. They provide you with key analytics that can help determine whether your ads hit the right milestones, like increasing likes or shares on social profiles!
Teamwork makes the dream work
When you’re running a social media ad, it’s always a good idea to let others know how you’re going in order to get help when needed, whether that means asking how certain ads are performing or how much they’ve been generating from each campaign.
By leveraging the strengths of your team members instead of trying to do everything by yourself, you’ll be able to work better together and find new ways to improve your campaigns for more revenue since clearly defining how effectiveness is measured will allow you to focus on how every single step is beneficial!
Track a unique code
Advertising how the ROI with Facebook and Instagram ads can be tough, but it’s important to always know how much revenue is being generated from every campaign so you’ll know how best to put more time and effort into what works well instead of wasting everyone’s time by spending a lot of cash on something that won’t help your business.
You don’t have to hire a professional or wait for a future date for a report before you understand how effective the current advertisements are – just simply track how many sales come from each ad using Facebook’s custom conversions feature or Google’s analytics!
By doing this, companies will be able to see how their advertising efforts are really paying off in real-time which allows a business to invest a lot more time and money into how effective advertising with social media can really be!
ROI for the win
Advertising how the ROI with Facebook and Instagram ads can be tough, but it’s important to always know how much revenue is being generated from every campaign so you’ll know how best to put more time and effort into what works well instead of wasting everyone’s time by spending a lot of cash on something that won’t help your business.
You don’t have to hire a professional or wait for a future date for a report before you understand how effective the current advertisements are – just simply track how many sales come from each ad using Facebook’s custom conversions feature or Google’s analytics!
By doing this, companies will be able to see how their advertising efforts are really paying off in real-time which allows a business to invest a lot more time and money into how effective advertising with social media can really be!
Track phone orders
Another great way to track how effective advertising on Facebook or Instagram is by measuring how many phone orders each ad has generated. Even if you don’t have any special features for tracking how well your ads are working, it’s no problem!
Just set up a unique landing page with how your company is contactable and how customers can find out more about whatever the advertisement was promoting.
By doing this, there’s no longer any need to wonder how much revenue social media ads are generating since everything will be right there in black and white without having to waste time looking at numbers that seem vague!
Code your coupons
Does how you have coupon codes that are being distributed across social media? If so, how can you track how many sales each advertisement for the code has generated in order to make sure you’re focusing on how well your ads are doing instead of wasting time with how ineffective they’ll be?
It’s simple! All you have to do is create how a unique landing page with an exclusive discount that’s only available when someone uses your coupon code when they’re checking out.
Then, when it comes time to pay at the checkout process, let them know how they can find their unique coupon by either creating how a QR Code which will automatically add the discount when it’s scanned or provide them with how a special link which will automatically add the discount when it’s clicked!
In other words, you’ll know how effective how your ads for how coupons are by how many sales they generate without having to wonder before since all of how the information will be right there in front of you!
Offer incentives
Are how you offering how how customers how free samples, exclusive bonuses or how discounts in order to get how more people to like how your page or share your advertisement? If so, how will you be able know how effective these ads are if there’s no way to track how many sales they generate?
Should you focus on making more sales or generating leads instead?
As long as you understand how to leverage metrics then this won’t be a problem because ultimately both will work together in unison – since generating leads generates money, i.e. potential customers that want to buy at some point in time.
