3 Essential Metrics Every Marketer Should Track to Boost ROI
When it comes to running advertising campaigns, the right metrics make all the difference in maximizing your return on investment (ROI). But with so many numbers to sift through, how do you know which ones really matter?
Here are the top 3 metrics to focus on and guide your advertising strategy.
1. Click-Through Rate (CTR) & Cost-Per-Click (CPC)
A high CTR indicates that your ads and targeting are hitting the mark, effectively driving users to engage. However, when analyzing CTR, be sure to focus on link clicks rather than total clicks—especially on social media—since other interactions (like likes or shares) don’t always translate to meaningful engagement. Combining CTR insights with CPC (Cost-Per-Click) can reveal the true cost-effectiveness of your efforts. For example, a high CTR with an excessively high CPC may indicate inefficiencies in bidding strategy, audience targeting, or ad messaging. On the other hand, a low CTR with a low CPC will deliver value, assuming it results in cost-effective conversions.
If CTR is low or CPC is high, experiment with new ad copy, visuals, or calls to action. Consider altering your audience targeting, bidding strategy, and placements.
2. Cost-Per-Conversion & Conversion Value
Tracking cost per conversion is crucial, but it’s only half the story. To get a clear picture of your ROI, you need to compare it to the value of those conversions.
For instance, imagine your Facebook campaign costs $5 per conversion, while your Google Ads campaign costs $10 per conversion. At first glance, Facebook might seem like the better option.
However, if the Facebook conversions are buying a $20 product, while the Google Ads conversions are buying a $100 product, the story changes. Despite the higher cost per conversion, Google Ads is delivering significantly more revenue per sale. In this case, Google Ads would be the better investment for maximizing ROI. Regularly evaluate both costs and revenues to identify which campaigns yield the best long-term results.
Make sure to also consider lifetime value of your customers as well as the initial conversion revenue.
3. Landing Page Conversion Rate
Clicks on your ad are great, but they don’t always translate to conversions. Ensure you are tracking your landing page conversion rates. This metric measures the percentage of visitors who take a desired action—like making a purchase or downloading a resource—after landing on your website.
If conversion rates are low, consider these factors:
Is your ad messaging aligned with the landing page?
Does the page have a clear and compelling call to action?
Are there technical issues like slow loading times or mobile unfriendliness?
To optimize your landing page, test different headlines, visuals and layouts. Even small changes can have a big impact.
Each Campaign is Unique
These are just a few key metrics you can use to improve your advertising campaigns. Every campaign is unique, and your focus should align with your specific goals.
Need help managing or setting up your next campaign on social media, search, or other platforms? Parable Group is here to guide you every step of the way. Contact us today! Let’s create a campaign that drives real results.
