Metrics with Meaning - Marketing Metrics You Should Care About in 2019
It’s that time of year again! Time to start setting goals for what you want to achieve in 2019. Our Klypsters put their SMART goal knowledge to work and created a list of metrics you should be focussing on this year.
With a plethora of 3-letter acronyms to choose from, it’s important to focus on metrics with meaning! It’s critical to ensure you’re developing goals which impact and mark tangible, positive progress for your business. So grab your pen & paper, and open up your paid marketing accounts, because here’s a list direct from our Klypsters.
The Holy Grail Metrics
Outside the Box Metrics
SMART Goal Template
The Holy Grail:
Consider these your “Holy Grail” metrics. These are the ones you need to keep a close eye on when reporting on your campaigns and setting SMART marketing goals!
Conversions represent the number of people completing a valuable goal. However, conversions are specific to each business, so it is important to first define what is a valuable conversion for your business (enquiries, transactions, phone calls etc.).
This is a standard metric used for goals, so if your company is looking to increase the volume of purchases, enquiries, views or other forms of engagement, this is a natural top choice.
For example: Increase Online Enquiry Conversions by 15% by August 2019 in comparison to the previous period.
Cost Per Conversion:
Managing your campaign’s Cost Per Conversion on both Facebook and Google Ads is vital for maximising ROI. Cost per Conversion is the average amount of spend that has been used on an ad for each conversion action. Depending on your chosen campaign objective, this could be a Cost Per Checkout, Cost Per Landing Page View, or Cost Per Engagement.
If you’re trying to maximise the utility of your spend, you’ll want to set some cost per conversion goals! As the metric changes with campaign objective, so should your goals. Make sure you are specific with this one.
You may even take into account the management or creative spend used to deliver these campaigns for a true indication of the Cost Per Conversion.
For example: Reduce Cost Per Landing Page View by 20% in 6 months.
The CTR refers to the number of users who clicked on your ad as a percentage of those who were shown it. A high CTR indicates that the ad is resonating with your determined audience. This may be due to engaging ad copy and creative or strategic targeting. A low CTR indicates a need to optimise one or both of these aspects of your strategy.
If you’re aiming to increase traffic to your website or your conversion rate, it’s time to think about your CTR! You can compare your CTRs to the industry averages for both Google Ads and Facebook Ads. This data is super helpful to consider when setting your SMART Goals, as you should be aiming to achieve a higher CTR than your competitors.
For example: Increase CTR to 25% above the industry average in the next 3 months.
Average Cost-Per-Click (Avg. CPC):
Managing your CPC’s is important when trying to optimize the cost efficiency of your PPC advertising accounts. This metric represents the average dollar value you pay for your clicks, and therefore, ensuring you have a goal that is in line with your budget is important.
If you are trying to reduce your spend, or get more traffic from the same spend, then it is time to set some CPC goals.
For example: Decrease Avg. CPC by 45% by 1st June 2019 - without a decrease in traffic
Outside the Box:
Once you’ve mastered the Holy Grail, you might start thinking outside the box. The “Outside the Box” metrics listed here will help you achieve more competitive ads, explain harder-to-solve ad performance problems and set SMARTer goals.
Search Impression Share
The Search Impression Share metric on Google Ads gives advertisers an indication of how much of their potential audience they are reaching, and where they sit in comparison to their competitors on these keywords. It is a great metric to understand how competitive you are, and how effective your ads are with cost & interest.
Furthermore, there are other Search Impression Share metrics you can measure, such as Outranking Share, which shows what percentage of the time you outrank your competitors etc.
If your business is looking to outshine its competitors or reach more of their potential market, this is a metric you should develop some goals around.
Increase Search Impression Share to 85% by June 2019
Increase Outranking Share to 64% by April 2019
Lost Impression Share
When understanding how you can increase the return from your Google Ads campaigns, a good metric to consider measuring is Lost Impression Share. This metric can be measured based on budget or rank (quality scores). It can also be measured further depending on the network it is on.
Advertisers can gain great insight into why their ads are not showing to more people - whether it be because they are not spending enough on their advertising, or if their ad quality needs improving.
If you’re aiming to expand reach and be the best in your industry/area, this is a good metric to incorporate into a SMART goal.
Decrease your Search Lost Impression Share (Rank) by 32% by June 2019
Decrease your Display Lost Impression Share (Budget) by 15% by March 2019
Frequency refers to the average number of times each person sees your ad. While frequency can be beneficial for increasing awareness, a high frequency can indicate tiring ads and possible consumer annoyance with ad repetition. It's important to monitor frequency to make sure that the same people don't see your ads too often during a campaign. Setting frequency goals can help you reduce the risk of this.
For example: Keep frequency for all Facebook campaigns under 4 by next month.
To reduce the frequency, try expanding your audience or if necessary, try refreshing your ad creative and copy.
Facebook relevance scores are often ignored but are one of the most important metrics to review when optimising your Facebook campaign. A relevance score is a number between 1 (least relevant) and 10 (most relevant) assigned to your ads once they reach 500 impressions. This number represents how relevant your audience perceives your ad to be.
The relevance score impacts other important metrics, so make sure you’re checking in! A high relevance score can decrease your CPC and increase CTR, all by ensuring your ads are delivered to your target audience. This is another metric you may consider developing goals around:
For example: Achieve relevance score of 7+ by the end of a three-month campaign for a given client.
Remember to report on the metrics that really matter to your business by setting up your account overview to include these holy grail measurements. You can customise columns in both Google Ads, Bing and Facebook Ads Manager to include all of the metrics we have mentioned, and more! You will become used to analysing your PPC accounts with metrics that matter, and improve your optimisation and reporting in the long-run. After all, behind every great result is a great goal!
If you’re ready to get SMART with your business goals but don’t know how to start, fear not! Our in-the-know Klypsters have put together a SMART Goals Template to help your business set and achieve goals. You can download it here!