Things to follow up: Analyze the results after running online advertisements.

Analyzing the results from online advertising is an important process that helps businesses improve their advertising campaigns for greater effectiveness and leads to more efficient resource utilization. Tracking the right metrics will enable you to understand the impact of the ads and the best ways to enhance the outcomes. Below are the aspects that should be monitored in online advertising analysis.

Click-Through Rate (CTR) – the rate of clicks through.

CTR is a metric that indicates the success of an advertisement in attracting the attention of the target audience.

• How to calculate: CTR = (number of clicks ÷ number of impressions) × 100
• Importance: A high CTR indicates that your ads are effectively capturing the attention of your target audience. Monitoring CTR helps you understand how effective your ad content or design is and how it should be improved if the CTR is low.

Conversion Rate – Rate of Change

The conversion rate is an important metric for assessing whether those who click on ads become valuable customers or not.

• How to calculate: Conversion Rate = (Number of goal actions ÷ Number of clicks) × 100
• Importance: When visitors make a purchase, fill out a registration form, or download information, it signifies the success of converting a visitor into a customer or someone interested in doing business with you.

Cost per Click (CPC) – Cost per click

CPC is an indicator that shows the amount of money you pay per click on your advertisement.

• Calculation method: CPC = Advertising budget ÷ Number of clicks
• Importance: Tracking CPC helps you understand the cost of each click and how you can adjust your budget or reduce click costs to achieve more valuable results.

Cost per Acquisition (CPA) – the cost of acquiring a customer.

CPA is an important metric that indicates how much the money you spend translates into actual business results.

• Calculation method: CPA = Advertising budget ÷ Number of conversions
• Importance: CPA will help you understand how much it costs to attract a new customer or close a sale, and it aids in planning future advertising investments.

Return on Ad Spend (ROAS) – the return on advertising expenditure.

ROAS is a measure of the return on investment from the money you spend on advertising.

• How to calculate: ROAS = Revenue generated from advertising ÷ Advertising expenses
• Importance: ROAS helps you determine whether the advertisement is worth the investment. A high ROAS indicates that the advertisement is generating revenue for your business effectively.

Bounce Rate – the rate of visitors leaving the website.

Bounce Rate is the percentage of visitors who click on a website but do not take any action and leave the site immediately.

• How to calculate: Bounce Rate = (Number of visitors who leave the website immediately ÷ Total number of visitors) × 100
• Importance: If the Bounce Rate is high, it may indicate that your website or Landing Page does not meet the expectations of visitors, or that customers may not be having a good experience. You should improve the content and design of the website to reduce the Bounce Rate.

Impressions – Number of displays

Impressions refer to the number of times your advertisement is displayed to the target audience.

• Importance: Having high impressions may help build brand recognition, but without clicks or further actions, you may need to improve the content or change the target audience to increase the CTR.

Engagement Rate – The rate of participation.

Engagement Rate is a metric that indicates the interaction of the audience with advertisements, such as likes, shares, or comments.

• How to calculate: Engagement Rate = (Number of Engagements ÷ Number of Impressions) × 100
• Importance: A high Engagement Rate indicates that the audience is interested in the advertisement and is engaging with your brand, which is crucial for building a long-term customer base.

Lifetime Value (LTV) – The lifetime value of a customer.

LTV is a metric that indicates the value that customers will generate for your business over the entire time they remain customers.

• Calculation method: LTV = Average purchase value × Purchase frequency × Customer lifespan
• Importance: Tracking LTV helps you understand the significance of retaining existing customers and building long-term relationships. It aids in making decisions about advertising strategies to enhance customer LTV.

Quality Score - Quality Score

Quality Score is a metric used by advertising platforms, such as Google Ads, which indicates the quality of advertisements.

• Importance: A high-quality score will lower your cost per click and result in better performance compared to ads with a low-quality score.

Analyzing the results from online advertising is crucial in helping businesses improve their campaigns for greater effectiveness. Various metrics should be monitored, such as CTR, Conversion Rate, CPC, CPA, ROAS, and Bounce Rate, to assess the performance of the ads and plan enhancements to maximize value.