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Home»BUSINESS»Evaluating Ad Campaign Performance: Metrics and KPIs for Success
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Evaluating Ad Campaign Performance: Metrics and KPIs for Success

By MporchardsOctober 31, 2023No Comments5 Mins Read
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Whenever you are running an ad campaign on social media, it’s crucial to measure its performance. If you don’t know whether your ad is performing right according to your pre-defined objectives, you will not be able to receive the expected results. Therefore, measuring the KPIs and success of an ad campaign are of high importance and every ad expert should have knowledge about them. By keeping that in mind, this short article will explain how you can evaluate your ad campaign performance and do what’s necessary!

Table of Contents

  • What Are Top KPIs and Metrics Involved in Evaluating an Ad Campaign’s Performance?
    • 1. Measuring Return on Investment
    • 2. Impression Rate
    • 3. Return on Ad Spend (ROAS)
    • 4. The Customer’s Lifetime Value (CLV)
    • 5. Ads Conversion Rate
    • 6. Average Session Duration
    • 7. Measuring Cost Per Lead
    • 8. CPA or Cost Per Acquisition
    • 9. CPC or Cost Per Click
    • 10. Total Number of Pageviews
  • Top Practices To Get Improved Performance Through Ad Campaigns:
  • Conclusion:

What Are Top KPIs and Metrics Involved in Evaluating an Ad Campaign’s Performance?

Every social media platform has a huge dashboard to offer where you can set up, run, and manage your ad campaigns. 

It doesn’t matter if you are running an ad campaign on YouTube to increase your YouTube likes or on Instagram to grow its followers; there is a complete system being introduced by these social media platforms. 

You can use such a system and indicate the actual performance of your social media ads. The following described KPIs and Metrics are helpful in understanding the success story of our social media ads campaigns!

1. Measuring Return on Investment

The first metric is how much revenue we have gained against the price we have spent on those ads.

It’s usually calculated by the revenue earned from our social media ad campaigns divided by the total revenue spent and multiplied by 100. 

The higher the percentage, the better the ROI of an ad campaign.

2. Impression Rate

This KPI of ads helps us measure how many impressions our ad content has got. It means how many people have been looking for those specific keywords we have used in our ad campaign content. 

More searches for our ad-related content lead to more impressions.

3. Return on Ad Spend (ROAS)

This is what we call the revenue earned against each dollar being spent in that ad campaign. The higher this ratio is, the higher our ad performance goes. 

It basically shows us how many bucks we have gained during that short period of running ad campaigns and spending dollars for them!

4. The Customer’s Lifetime Value (CLV)

These metrics help us define what is the total customer lifetime value of a person with our services. For example, a customer paying 100 dollars every month will have a total CLV of 400 dollars at the end of 4 months.

5. Ads Conversion Rate

That defines how many leads have converted into sales or our permanent customers. The higher the conversion rate from that specific ad campaign, the higher that campaign is successful. 

5.-Ads-Conversion-Rate

If there are 100 visitors visiting your store after clicking the ad and 10 of them actually buy your product or services, the conversion rate goes to 10%.

6. Average Session Duration

It’s the metrics that help us evaluate the performance of our ads by calculating the total session duration of a visitor. It’s a time or a complete session being calculated within the time frame of 30 minutes. A user usually has one or multiple sessions on your website.

7. Measuring Cost Per Lead

These metrics help you understand the total cost spent by your ad campaign to generate one lead. When there are more leads against the total cost spent, this will be called a good CPL rate.

8. CPA or Cost Per Acquisition

This KPI indicates the time frame it takes for your business to bring one customer. When more customers are there in a short time frame, that means your CPA is going well.

9. CPC or Cost Per Click

The KPI defines how many clicks your specific ad campaign has gained. If a single ad or CPC campaign receives more clicks, that means a good CPC rate for your campaigns. 

Ultimately, it defines how well a social media ad is performing in that particular environment!

10. Total Number of Pageviews

Page view metrics define how many visitors have seen or visited a specific page of your website. More page views lead to more visitors and vice versa.

Top Practices To Get Improved Performance Through Ad Campaigns:

Running a successful ad campaign comes with a lot of practice. Especially when you are doing it for your own social media or website business expansion, consider implementing the following steps to make it work.

  • Define your target audience and look out for their intent to create a personalized ad experience
  • Set some clear goals and objectives and measure the performance of your ad campaign against those goals and objectives
  • Be quick in replying to customer queries to enhance the response rate
  • Drive more customers to your social media by adding user-generated content to your social media ads
  • Keep measuring and analyzing the ad’s performance from time to time for better results overall.

Conclusion:

A social media store or a brand, when having no expertise in running successful social media ads, should hire professionals to do the job. This way, these professionals can help your business achieve its desired goals by saving your budget, time, and effort. Moreover, work like this done by experienced people leads you to better success in the future!

  

 

Mporchards
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