Impression
An ad impression is the calculated instance of an ad being displayed to a human consumer. Impressions give marketers a broad understanding of how many people their brand is reaching. An impression is one ad requested from one ad network to be served on one website or app.
Why use this KPI: When the goal is to hit as many impressions as possible, with no regard to actions taken.
Cost-per-Click (CPC)
CPC = Cost/Number of Clicks
Cost-per-click (CPC) is how much the advertiser pays a publisher every time a consumer clicks on the ad.
Why use this KPI: When the campaign's goal is to send users to websites via link clicks at the cheapest price possible.
Click-Through Rate (CTR)
CTR = Number of Clicks/Impressions
Percentage of impressions resulting in a click. Click-through rate (CTR) is the ratio of clicks to ad impressions. This is the most commonly used metric to determine the success of an ad campaign.
Why use this KPI: Best used to drive traffic to a website (or other destination).
Video Completion Rate (VCR)
VCR = video starts/fully completed views
The percentage of all video ads that play through their entire duration to completion. Also known as View Through Rate (VTR).
Why use this KPI: Use this optimization when the goal is attaining the highest video completion as possible. Not an option on Facebook.
Cost-per-Action (CPA)
CPA = Cost/Number of Actions
Sometimes referred to as Cost Per Acquisition or Cost Per Conversion, this metric is an online and mobile advertising pricing model, where the advertiser pays for each specified action. For example, an action after an initial impression and click, like an install, form submit (e.g., contact request, newsletter sign up, registration, etc.), double opt-in, or in-app sale.
Why use this KPI: Best for campaigns selling a good, service, or capturing a form result (like a lead). “Action” is used to describe a complex task the user must complete for you to consider them a success.
Cost-per-Mille (CPM)
CPM = Cost/Impressions X 1000
Cost-per-Mille (CPM) is a pay structure designed to generate brand awareness. The advertiser pays the publisher for every 1000 times the advertisement is displayed to a consumer.
Why use this KPI: Best used to increase brand awareness by maximizing “views” of your ads.
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