Running display adverts online can be a really effective way to engage with potential customers online. It is however important that your display ads service the purpose of your campaign goals, for example they might be:
To acquire new customers to your website.
To get more sign ups to an event.
For potential customers to buy your product via your website.
Where might you have seen them? Have you ever seen an amazon banner advert appearing when you use a search engine? or a Nike advert or a bank trying to entice you to taking a savings account? Next time you see one take not of the design, the call to action (the button that asks you to click) and the simple, clear message.
Remember that display advertising can influence potential customers at various stages of the purchasing journey or funnel. We advise setting clear campaign goals and using different metrics for every stage.
Here are some key performance indicators (KPIs) you’ll need to track to measure the success of your campaigns.
Awareness stage (where prospects are looking for answers, resources and general research):
New website visitors - track the number of new visitors who came to your website when you launched the campaign.
Engagement - how long did visitors spend on your website? How many pages did they view? If you find the bounce rate is hit or the time on the website is low it might be worth adjusting your strategy or tweaking your creative because it might mean that once visitors got to your website it wasn’t what they expected.
Consideration stage (where prospects are evaluating whether your product or service is what they’re looking for):
Number of conversions - how many filled in the online form? How many bought your product? At this stage of the buying process the website visitors are aware of your brand and considering to purchase. It might be worth retargeting these visitors to convince them to convert.
Cost per acquisition (CPA) - Your overall campaign spend divided by the total number of conversions. CPA is an important KPI to keep track across the whole funnel.
Decision stage (here you want to close the deal and grow your customer base):
ROI and LTV
Return on Investment: The net profit generated by your campaign, calculated as the difference between the total revenue the campaign generated and the total cost of running the campaign.
Lifetime value: The net profit given to a customer over their lifetime. LTV = (average margin per order x repeat sales frequency x average retention time)
Example:
LTV = £250
CPA = £50
ROI = (£250 - £50)
Overall ROI is £200
If you need assistance with evaluating your display advertising or creating a brand new campaign get in touch on info@nutsaboutmarketing.com