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John Danenbarger
Measure Your Campaign
The standard method for measurement is taking the following into consideration.
- Clicks: The amount of clicks a display ad received
- Impressions: The number of times the display ad has been seen by visitors
- CTR: A click-through rate is the ratio between clicks and impressions
- Cost per Sale: This is the amount spent per sale and the figure is dependent on the cost of the product or service itself that is advertized.
- Conversions: An HTML conversion tag is placed on the website (or landing page) and tracks the amount of conversions that have occurred which could be an action like a registration or a purchase.
Keep in mind that these figures collectively will demonstrate your campaign’s performance. Do not rely solely on the amount of clicks. Research by comScore has shown that two-thirds of Internet users do not click on any display ads over the course of a month and that only 16% of Internet users account for 80% of all clicks. It also showed that the viewers who click tend to be younger and less affluent than the people who don’t.
Hence, clicks are only a partial measure of the progress and effectiveness of an online advertizing campaign. About 80% of the traffic of viewers that were exposed to the ads is not accounted for when measuring clicks only.
Next we discuss steps to improve performance of display ads.
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