Tuesday, May 10, 2011

Cut-up #2 // Success Metrics For Direct Response Display Campaigns



Advertisers with direct response goals are usually more concerned maximizing their return-on-investment than creating brand awareness. The key success metric for direct response campaigns is conversions, since this tells you how many people are completing a goal activity on your site. A goal activity could be any action that a visitor could take on your site that you consider to be valuable, such as purchases or sign-ups.
Impressions and clicks are less important in measuring direct response campaigns. When you understand which campaigns are driving conversions, you can determine which campaigns are generating the most value.
Other metrics that you should monitor include:
  • Cost-per-conversion: Represents the amount you paid for a conversion, which should correspond to the value you place on the goal activity.
  • Conversion rate: Indicates the percentage of visitors who subsequently complete the goal activity.
  • View-through conversions: Additional conversions that came from people who saw your display ad but didn't click on it, and then later visited your site and completed a conversion.

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