Which advertising metrics should you track every day?

This article is about which metrics you should track every day and what actions you can take to influence them.

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‍Impression-to-click conversion (CTR – click-through rate) – how many people who saw your advert actually clicked on it. This metric is calculated as follows: (number of clicks / number of impressions) * 100. Let’s say 1,000 people saw your advert and 10 of them clicked on it. We calculate: 10/1,000*100=1%. The lower your CTR, the more you will pay per click. What does it mean if your CTR is very low? Your ad is simply not attractive to people. What should you change? The ad copy, the headline, the image, rethink the offer, use video.

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‍Cost per click (CPC) – how much do you pay for one click? The calculation is very simple: divide the amount spent on your campaign by the number of clicks. For example, you spent €10 on advertising and received 100 clicks. Your cost per click is €0.10 (10/100). CPC tends to be high when your advert is not attractive to people. If your CTR is low, your clicks will inevitably cost more. How can you reduce CPC? In exactly the same way as with CTR – by improving the advert itself.

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‍Click-to-enquiry conversion – let’s say 100 users visit your website: how many of them fill in an enquiry form? This metric is calculated as follows: (number of enquiries/number of clicks to the website)*100. The result is expressed as a percentage. For example, 132 users visited your website and 4 of them submitted an enquiry. We calculate: 4/132*100=3.03%. What is an optimal conversion rate? it is hard to say – it depends on the niche. However, a conversion rate of 2–5% is generally a good benchmark. If your conversion rate is below 1%, that should ring alarm bells. A low conversion rate means you need to make changes on your website: your offer is not attractive, the site looks untrustworthy or outdated. You need to ask yourself: are the photos on the website high quality? Is there a testimonials section? Are the company details clearly shown? How are we different from our competitors? Is there any video on the website? Is there a live chat function? And so on. Study the best websites and see what they have that yours does not.

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‍Cost per enquiry. Simply divide your advertising spend by the number of enquiries. You need to know how much it costs you to get an enquiry from a potential client. You will start responding to enquiries much more quickly once you have calculated how much each one costs you. In general, this metric measures the effectiveness of your advertising. If you have two Facebook campaigns and in one of them an enquiry costs €3 while in the other it costs €1, perhaps you should invest the full budget in the second campaign? If you track this metric over a longer period, you can accurately predict what budget you need to generate a planned number of enquiries.

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‍Enquiry-to-sale conversion. How many of the potential clients who submitted an enquiry actually became clients (bought your services)? This metric is calculated as follows: (number of sales/number of enquiries)*100. The result is expressed as a percentage. For example, you received 15 enquiries and 4 of them became clients. We calculate: 4/15*100=26.66%. If this rate is low, it can mean several things. You may be selling ineffectively over the phone or in meetings. It may also mean that your enquiries are of poor quality (for example, many of the people filling in the form are not solvent).

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‍Average order value. How much revenue do you generate on average from a single sale? You calculate this by dividing your revenue by the number of sales. Why is this metric important? It allows you to easily calculate how many sales you need to make to reach your target. If you make a lot of sales but your average order value is low, it is worth thinking about how you can increase it. This way, you can increase your revenue with a single, targeted improvement.

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