The ecommerce space has continually become competitive. Stepping up internet marketing efforts is crucial to keep a brand afloat and ahead of competitors. Digital advertising has become very important. Especially for marketers who strive to make brands known to internet visitors, mobile app users, and social media users. Many forms of digital marketing exist. But search engine marketing is probably the most dominant and popular among brand owners and digital marketers.
Search Engine Marketing (SEM)
For brand owners who are new to digital marketing, getting familiar with search engine marketing is vital to the success of digital marketing campaigns. SEM is probably the most dependable form of digital advertising. Acing the various SEM techniques will prove better advertising results.
SEM comprises two major subtypes: Search Engine Optimization (SEO) and Pay per Click, also known as Cost per Click (CPC). SEO comes in handy in driving traffic to sites that are optimized for various search engines. Through various SEO techniques, brands can get visitors through their websites and social media pages. SEO results are measured through quantifiable data and metrics. These show how successful a marketing campaign has been. The details of these quantifiable data and metrics will be elaborated further.
But, Cost per Click is an easier way of ranking websites on various search engines. Advertisers who wish to avoid the hassles of SEO see this as an easier way of ranking websites and getting traffic. For a successful CPC marketing campaign, advertisers should understand:
- Advertising formats
- Ad networks
- The terms and acronyms related to CPC
While they may differ in functionality, SEO and CPC are somewhat similar. They are both reliant on search engines. Visitors can only click on a brand’s website through a search engine. What’s more, these digital marketing techniques point to a common result: driving visitors to a brand’s website.
Quantifiable Data And Metrics For Digital Marketing Campaigns
With SEO, there are hundreds of statistics and analytics that give a brand insight into their digital marketing efforts. The key metrics and quantifiable SEO data fall under three broad classifications:
- Revenue metrics
Traffic metrics come in handy in the early days of a brand’s SEO campaign. Conversion metrics are essential as you move down the sales funnel.
Traffic metrics generally show brands how many visitors are checking out their website. Such visitors are often referred to as leads. Conversion metrics show how many of these leads turn into first-customers, with the prospect of becoming loyal customers. Revenue metrics, as the name suggests, show the costs involved and the returns of the marketing campaign.
Total Website Visits
This is one piece of quantifiable data that businesses should watch to gauge the effectiveness of their marketing campaign. An upward trend of this metric is a good sign and often indicates a working campaign. But, if this number keeps falling from time to time, then the strategy needs to change.
Traffic by Sources/Channels
In digital marketing, segmenting is essential to the success of a campaign. It helps brands identify the channels that are under or over performing for optimization purposes. This metric helps track the following sources of traffic:
- Direct visitors: These are potential customers who visit a site by typing a brand’s URL directly into a browser.
- Organic: These are visits to a site following a search query
- Social Media: Brands with social media pages should also find out the number of visitors who arrive at their website through social media platforms. Traffic through social media platforms also gives brands a hint of how good their content is in their marketing campaign.
- Referrals: These are visitors who land on your website through a link on another site.
Interactions per Visit
Interactions are not to be mistaken for conversions. But, the former is meant to lead to the latter. Interactions per visit represent a more detailed look into a brand’s traffic. Proper interpretation results in a clearer perception. This metric helps you get the following details:
- The number of pages on your site a visitor lands
- The time they spend on a particular page
- Their activity on a webpage
Such details help you discover what keeps your visitors on a particular page and what to do to improve other pages.
New visitors vs Return visitors
Marketers should also distinguish these traffic metrics. While new visitors are those interacting with your site for the first time, return visitors are those that have visited your site more than once. This is probably due to resonation with your content. Quality content will keep visitors coming for more. The ratio of new visitors to return visitors indicates how a brand’s fresh content is performing. As such, a high ratio indicates that fresh content is doing well in attracting new visitors. But, the other parts of the site are not doing enough to keep visitors coming back.
This refers to the number of visitors who leave immediately without taking a significant action. A high bounce rate could mean detrimental flaws in a digital marketing campaign. These flaws could include:
- Ineffective market research
- Inferior landing pages
- Irrelevant traffic channels
Smartphones have become essentials. It would be careless of brands not to check their mobile visitor data. This helps them know the number of mobile customers, which may help boost their conversions.
In tracking this metric, brands should be keen to note the proportion of their traffic that is mobile. They should also note the devices and browsers used, the sources of the mobile traffic, and the content they resonate with. Brands should also ensure that their sites are optimized for mobile. This will help keep the loading speed high for better chances of conversion.
This essential metric is often confused with the bounce rate. Unlike the bounce rate, it shows the fraction of visitors who left a specific page of a website over the total number of visitors who landed on the page. This helps brands optimize properly for conversions.
Cost per Visitor (CPV) & Revenue per Visitor (RPV)
These metrics indicate the profitability of marketing channels. If the RPV surpasses the CPV, then the brand has a meaningful digital marketing campaign. The CPV is obtained by dividing the total investment in a marketing channel by the number of visitors it generates. The RVP is calculated by dividing the income attributed to a certain marketing channel by visitors generated by that channel. Checking these figures for each channel helps brands gauge their success.
Cost Per Click In PPC
Now you are familiar with the quantifiable data and metrics for marketing campaigns. It is equally important to discuss CPC as a metric of Pay per Click advertising. With the goals of a digital marketing campaign in mind, brands can set up Google Ads and Google Analytics to help them measure the performance of their campaign.
What is CPC?
Cost per Click is the price paid by an advertiser to a publisher for every click in a PPC marketing campaign. Monitoring the CPC in a marketing campaign is especially important in determining and maintaining a healthy return on investment (ROI).
The PPC model is common for search engines. This form of digital marketing is also common on social media platforms like Facebook, Twitter, Instagram, and LinkedIn. Google Ads is probably the most common Ad network for search engines.
Calculating the Cost per Click (CPC)
CPC is generally calculated by dividing the advertising cost by the number of clicks. While this represents the general formula of determining CPC, advertisers should be aware of the following CPC formulas:
When using this model, Ad publishers already know the amount to charge for a CPC advertising campaign. This depends on the frequency of other websites to advertise using particular keywords in the ad. It may also depend on the normal rate for similar ads on other platforms. A common formula used by platforms to set the flat rate is the CPI divided by the percentage CTR.
Most top advertising platforms, including Google, use this model. In this model, advertisers set a campaign duration and their budget per click. This budget represents their bid.
Advertisers compete with other competitors for ad positions through their bids. So, the cost of advertising and the clicks generated is determined by other competitors through the PPC auction.
Metrics Related to Cost per Click
Every conversion begins with a click. As such, clicks are primary indicators of a successful PPC campaign. This performance indicator shows the number of online users that have clicked on an advertiser’s ad. Advertisers should keep an eye on their accounts to pause ads that are not doing well and step up their bids for thriving ads.
Click-Through Rate (CTR)
CTR is another important metric for marketing performance, like measuring the number of clicks generated in a marketing campaign. CTR is obtained by dividing the number of clicks a marketing campaign got in a specific period (say a month) by the total impressions. So, for 1000 impressions and 100 clicks, the CTR is 10%.
While it is important to know the meaning of CTR and how it is measured, marketing campaign managers should keep in mind that there is no particular CTR they should strive to achieve. This is largely because PPC performance varies among industries and depends on a couple of other variables.
This is probably the most abstract KPI that advertisers come across. It is a metric by Google to indicate the relevance of your content using variables such as landing page experience and CTR. Using these variables and others like ad format, Google determines a marketing campaign’s Quality Score.
Cost per Acquisition (CPA)
CPA is another metric like CPC. Google defines it as the price advertisers pay for the acquisition of a new customer. It is calculated by dividing the total conversion costs by the number of total conversions. Google derives CPA from your Quality Score.
Conversion Rate (CVR)
This is also another indicator of marketing campaign success. It can be measured by dividing the campaign’s total conversions by the total clicks. This metric is expressed as a percentage. For a campaign that had 100 clicks and 10 conversions, the conversion rate would be 10%.
Impressions occur when online users see your ad. Even without clicking on it. So, the number of impressions generated isn’t necessarily an indicator of success. This is because it doesn’t show the number of users that found it effective or relevant.
It is determined by dividing the total number of impressions received by the number of impressions your marketing campaign was eligible for. The latter, according to Google, is determined by a couple of factors. This includes approval, targeting settings, and content quality.
The average cost per click is what an advertiser pays on average for every click on their ad. It is calculated by dividing the total click cost by the number of clicks.
This value represents the highest value an advertiser thinks a click is worth. This is the highest they are willing to pay. But, the maximum CPC for an advertiser may not be the amount they pay for the click. Google recommends that advertisers set their maximum CPC to $1 if they are uncertain of the highest amount.
Manual CPC Bidding
Manual cost per click bidding refers to the process where advertisers set the maximum CPC by themselves rather than through an automated bidding process.
This refers to an automated bidding process in Google AdWords for specific ads appearing on Display Network and Google’s Search Network. Enhanced CPC is particularly essential if your goal is to maximize ad conversions.
In a digital marketing campaign, brands and advertisers ought to look out for the key metrics that indicate the success of the campaign. The quantifiable data and metrics mainly measure the efforts put towards generating traffic through SEO techniques. CPC is also an essential metric used to measure the success of a PPC marketing campaign.
Table of Contents
With Scrollable Navigation
Chapter 1 – Quantifiable Data And Metrics Vs Cost Per Click
Chapter 2 – Search Engine Marketing (SEM)
Chapter 4 – Cost Per Click In PPC
Chapter 5 – Conclusion