Many publishers are often passionate about running a campaign and forget to follow the metrics. You need to understand the indicators to track, because the main task is to make a profit.
For example, we know thata approve 50%, pay $ 31 - average value of $ 16.
CTR - clickthrough rate for ads
Shows how many percent of users are accessing ads.
CTR = Clicks / Impressions * 100%
For example, if the ad is displayed 10 000 times, and the number is transferred to the website 120 человек, that means CTR = 120 / 10,000 * 100 = 1.2%.
High CTR does not mean that the lead price will be small. Do not focus on this index.
For example: pay 8 $ offer. In the Facebook ad account there are 2 working lists.
CTR = 3%.
CR (conversion rate) = 20%.
Price 1000 cost per mille (СРМ) = 3 $.
Number of clicks = 1000 * 0.03 = 30.
Click price = 200/30 = 6.7 рубля.
Number of leads = 30 * 0.2 = 6.
My $ 3 cost is 50% approve and 3 lead confirmations
CTR = 9%.
CR = 2.2%.
Price 1000 (СРМ) = 3 $
Number of clicks = 1000 * 0.09 = 90.
The value of click = 200/90 = 2.2 рубля.
Number of leads = 90 * 0.022 = 2.
My $ 3 cost is 50% approve and 1 lead certified. In the first case the CTR is worse, but the profit from the notice is higher.
Conversion rate or CR
Shows how many percent of the users placed an order on the page.
CR = Number of orders / clicks * 100%.
For example, if a website has visited 4,000 users, and you have received 150 orders, that means: CR = 150/4000 * 100% = 3.75%.
Try to strike a balance between clickthrough rate and conversion rate. Make your creatives come alive but relevant to your ad.
Return on investment or ROI
ROI - return on investment
ROI shows how many percent of profits you get from the amount you spend.
ROI = (Income - expense) / cost * 100%.
For example, if you spent $ 1000 on an offer to advertise, then received $ 1500, which means the profit is equal to 50%. That is called ROI
Profit from click or EPC
EPC - earnings per click
It shows the amount of money earned with a click and helps to understand which campaign is most profitable.
EPC = Earnings / number of clicks
For example, you have 2 campaigns:
Earn: $ 100
EPC = $ 6.67
Earn: $ 130
EPC = $ 6.84
Average cost effective and lead approved
Shows the lead price excluding trash
Price of lead = Cost / Number of leads excluding trash.
For example, you have received 27 applications through Facebook and cost $ 187.
Price for an application = 187/27 = $ 6.92.
Of the 27 applications, 13 will fall into the trash, which means that only 14 are valid. The price of a lead will be $ 13.35, and you will lose a lot.
Lead price is appove = Cost / Number of leads approved.
Net profit from approved leads = Expenditure – The lead price is approved.
Each indicator must be tracked: reducing one of the indicators will lead you to failure
Influence frequency on the campaign's target
Frequency of determining how many ad impressions per person.
High frequency causes lower clicks and lower CR: Users often see ads and negative reactions.
Frequency = Number of impressions / coverage.
For example, if the ad is shown 14 567 times and the coverage is 8,654, the frequency is 1.68. So on average, each user has seen an ad almost double.
Dependence of frequency and click rate
How to reduce the frequency of advertising?
Please exclude the audience who clicked / interacted with the ad.
Update your ad as frequency increases so your audience doesn't see your ad multiple times.
Keep track of budget and audience number.
Set automated rules to pause your ads or lower your budget.