A marketing metric measures the effectiveness of a marketing campaign based on key performance indicators (KPIs). In fact, without them, marketing teams could not know whether their campaign is successful. This article explores the basics of marketing metrics and KPIs, shares digital marketing metrics, and discusses how Amazon Advertising solutions can be used to measure campaigns most effectively.
Metrics for measuring an advertising campaign's effectiveness provide a quantifiable way to measure its performance. In general, marketing metrics should measure the influence of your campaigns on audience behaviour. However, the best ones will vary depending on your campaign. It is best to measure marketing metrics that have the greatest impact on your business goals, which may be sales generated for one campaign but incremental reach for another. Marketing metrics help you plan and optimize future campaigns by helping you understand how effective your campaigns are.
There are hundreds of metrics marketers can use to assess the success of their campaigns. The key is choosing the one that's right for each particular plan.
You can gain different insights by using different metrics. For instance, email opens and clicks can indicate engagement level, whereas your unsubscribe rate can show whether your content is engaging. A video view or an impression helps you measure how far your campaign is reaching. Cost-per-action allows you to measure the efficiency of your campaigns.
Here are a few examples of metrics to help marketers optimize their budgets by measuring various marketing channels.
It is vital for brands to evaluate the success of their marketing campaigns based on marketing metrics, and to adjust future campaigns based on that information. Their analysis helps marketers improve their campaigns and marketing channels by determining how well their campaigns are performing in relation to corporate goals.
Marketing teams can use these insights to find out if they have reached their objectives related to acquiring new customers, awareness, engagement, sales, lead generation, and more. Using these analytics you can also get a heads up if your marketing campaigns aren't performing well, as well as adjust your campaigns in real time.
Additionally, marketing metrics provide marketers with a way to view how their company or organization is benefiting from marketing and advertising. These insights can inform annual budgets and headcount, which makes them crucial beyond ongoing measurement and campaign planning.
Indicators of key campaign performance measure campaign performance against each goal. Marketers monitor a wide variety of metrics, but each campaign should have a limited number of KPIs. Within a campaign's timeframe, they should be measurable, specific, and achievable.
Each campaign's KPIs change throughout the campaign, and there is not a set that works for everyone. Moreover, a different measurement approach is appropriate for each stage of the marketing funnel. Following are three KPIs and metrics for digital marketers to consider.
Lead generation and conversion rate-or the amount of leads that become customers-are the best metrics to track the performance of an advertising campaign that generates new leads. This conversion metric can be found within the Amazon Advertising campaign reporting, which breaks down these metrics by dimensions such as campaign, creative, and product ASIN. Tools such as Amazon Attribution (beta) help advertisers understand on-Amazon conversion metrics, such as detailed page views, Add to Carts, and purchases, in addition to measuring non-Amazon campaigns such as email, search, and social.
In order to measure return on investment (ROI), marketers should compare customer lifetime value (CLV) and customer acquisition cost (CAC). Customer lifetime value refers to how much revenue an average customer generates over a certain period of time, while customer acquisition refers to how much a brand has to spend to acquire a new customer. When customer acquisition costs are high and customer lifetime value is low, it's an indication that you need to change your marketing strategy to reach different audiences.
Brand impression share is an indicator of how well a brand is performing on a given channel when compared to its total potential audience-for example, how many times your display ad was viewed compared to the total number of impressions. Impression share can increase the frequency with which a brand appears and result in increased sales.
Multiple metrics-based advertising options are available on Amazon Advertising. Amazon DSP, for instance, offers free performance reports and audience insights before and after campaigns. In this way, marketers can identify the marketing metrics that are driving the best results. As an advertising and analytics measurement solution, Amazon Attribution (beta) can help you measure the impact of your non-Amazon marketing channels - including search, social, video, display, and email - against brand performance on Amazon.
Whether it's start-ups, agencies, or established brands, our reporting and measurement solutions make it easy for marketers to plan, optimize, and measure their marketing campaigns accurately. Learn how these solutions can elevate your measurement strategy by contacting us today!