Measuring your marketing efforts has always been an important part of marketing. As a small business measuring your success helps gives you the information you need to make wise marketing decisions. For marketers, measuring our success helps us keep our jobs!
As online marketing continues to become more advanced and complicated, many business owners may feel lost with all the jargon that they hear from agencies and marketing departments. The fact of the matter is that no matter how complicated and advanced online marketing becomes, it all boils down to some of the same old tried and true metrics that we have grown to love.
Online Measuring, Set Your Goals
Measuring your online success starts with identifying what you hope to get out of your campaign. If you don’t know what you want out of a campaign how do you know if you have succeeded? This is step one for any marketer and it is why most campaigns die before they get started. Failure to establish goals and expectations leads to the firing of marketing departments, and lost dollars for business owners.
Measuring Online Success Can Be Easy
Measuring your success doesn’t have to be difficult. There are some basic goals that you can set and your marketing team can work towards. If you need a starting point try consider goals built on, acquisition, frequency, and reach.
An acquisition campaign is generally designed to gain a new customer or new leads. These are very easy to measure.
Measure Acquisitions by- Total increase in sales or leads during the campaign. Pro Tip- It is also wise to look at assisted leads and sales during the campaign. These are sales and leads that don’t come directly from your campaign, but that are influenced by it. Pro Tip #2- If you divide your total amount spent on the campaign by the number of leads or transactions you get something called a CPA or Cost Per Acquisition. This can be a benchmark for future campaigns.
Example- I create a banner ad and place it on a website. It costs $200 a month to run the banner ad. I get 20 new leads from the ad. My CPA is $10. For every $10 spent I have one new lead. If those leads bring in more than $10 in profit my campaign is a success.
A frequency campaign is generally used for branding. The main goal in a frequency campaign is to have your audience see your message as many times as possible.
Measure Frequency by- We typically measure frequency not only by how often your message is seen but by the bang we get for our buck. We call this CPM or Cost Per 1,000 Impressions. Because a branding or frequency campaign may not be designed to drive leads or sales directly it is generally best to aim for a low CPM, providing you are still reaching your audience. Pro Tip- Frequency and CPM is a great measurement for social media campaigns.
Example- You pay the social media team $100 a week to manage Twitter. They post a Tweet 1,000 times a week. Your CPM is $100. If you pay them $100 in a week and they Tweet 2,000 times you now have a CPM of $50.
Reach campaigns are designed to stretch the boundaries of your audience. With reach you want your current audience to see your message. With reach you want as many unique members of your audience to see your message as possible.
Measuring Reach- We measure reach by looking at unique views of your message. That means that if I am in your audience and see your message once that is great. When I see it the second time I am no longer a unique view. Pro Tip- The web is almost designed for campaigns like this. Almost every online platform allows you to target your marketing. This targeting will allow you to show your message to only a set group and not waste impressions on people outside of your audience.
Example- If you target an audience and your ad is shown 500 times to an audience. Each member of the audience sees your ad twice. You have a reach of 250.
Measure Your Success
Now that we have boiled measuring online success down to the basics you can go out with renewed confidence and find some online success.