KPI for targeted advertising

How to determine the effectiveness of your advertising campaigns? It is easy to do based on key KPI. Let’s consider the main ones:

• CTR is the ratio of the number of clicks to the number of impressions. Based on this indicator, you can find out whether the audience is interested in the ad. It is influenced by the relevance of the title and text, selected audience and creative.
• CR is the ratio of received clicks to targeted actions. The indicator depends on the traffic quality, users’ interest, and correct advertising setting.
• CPC is the pay-per-click. It is calculated by the ratio of placement cost to the number of clicks. As the rate increases, the cost of the click decreases, and vice versa.
• CPM is the cost per thousand impressions. It depends on many factors: the number of advertisers in your niche, the daily budget for an advertising campaign, quality and relevance of the creative. It’s simple — the best advertisers get the lowest cost.
• CPA is the cost per targeted action. It is calculated by the ratio of advertising costs to the number of interactions. This model involves payment for the operation performed by the user.
• CPL is the price per lead. If the indicator is greater than or equal to the income from one lead, the work is ineffective, and you need to change the advertisement.

And how do you calculate the KPI of advertisements and promos?Share your experience in the comments and subscribe to our page to read more useful materials about Internet marketing!