Because the sea of available marketing metrics is so vast, executives are often swimming endlessly to find what information is relevant for measuring the success of their advertising.
Many executives find themselves relying on “vanity metrics”. This is often a mistake because while all metrics can be relevant, not all metrics give clarity on whether advertising strategies are winning ones.
Make sure you’re focused on the particular metrics that can be tracked and attributed to your pre-defined goals.
Said differently, make sure the metrics you are reviewing line up 1-1 with the goals of your marketing team.
Imagine this scenario, you run a nonprofit that is on a mission to phase out plastic straws nationwide. Your organization launches an ad campaign hoping to increase membership engagement and gain more financial support.
The advertising metric you should be focused on is the total percentage increase of engagement among your active users. If you’ve set up a mechanism to receive electronic donations, you can also tie in the relative increase in revenue you’ve generated among your members.
Using vanity metrics (such as total registered users, total page views, and cost per impressions in this case) may lead you astray in measuring your advertising results.
Vanity metrics may show positive growth for your organization’s visibility, but don’t directly show how effective your advertising efforts are.
When analyzing your advertising success, remember these three elements:
- Clarify your company’s objectives – be creative in identifying the best metric(s) that depicts success for that objective.
- Keep track – use the right attribution model so you can track and report on the key metric(s).
- Benchmark costs – determine exactly what the costs are in relation to those key metrics, so you can forecast future results.
Please don’t buy into vanity metrics. Statistics are fancy. They need to be tracked and reported correctly for them to be a valuable part of your advertising strategy.
If you’re able to keep a narrow lens on the data by following these three points, you’ll go a long way in establishing meaningful advertising objectives and determining attributable metrics to gauge your success. Doing this properly will assist you in optimizing your strategies to account for the evolving needs and desires of your target audiences.
Our expert team is here to help you in your advertising journey. Reach out to us. We’re digital experts with a proven track record of helping our clients win.