Advertising Metrics to Watch in 2023
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Paid advertising is one of the most effective strategies for generating new leads and increasing revenue for your company, but how do you know if you're doing it correctly? You can learn how your advertisements perform and determine whether they produce results by tracking advertising metrics.
However, you might feel confused when you consider all the advertising metrics that are available. How do you decide which metrics to monitor?
We've compiled a list of 14 digital advertising metrics to help you focus, including:
- Bounce rate
- Website traffic
- Cost per thousand (CPM)
- Cost per click (CPC)
- Click-through rate (CTR)
- Cost per view (CPV)
- Engagement rate
- Return on investment (ROI)
- Conversion rate
- Return on ad spend (ROAS)
- Cost per acquisition (CPA)
- Customer lifetime value (CLV)
Why it's vital to monitor advertising metrics
It's important to comprehend why tracking advertising metrics is necessary before we go into the list of metrics to watch in 2023. There are three main motives for tracking your advertising metrics:
Understanding ad performance is made easier by tracking ad metrics.
Businesses frequently make the error of placing their advertisements without giving them any further thought. They believe that simply placing an advertisement will produce the desired results. Realistically, you must track your ads to ensure they produce the desired outcomes.
When you monitor digital advertising metrics, you can determine whether your ads successfully reach your target audience and achieve your objectives.
You can improve ads by monitoring ad metrics.
Only some advertising campaigns you run will produce the desired results. You might discover that even though you thought your advertisement was perfect, your target audience could have responded better to it. You can find the ads that aren't working and make them more effective by monitoring your ad metrics.
You can check your advertising metrics to see how effective your ads are. Do people ignore your ads, or do you lose them before they can convert? You can make adjustments and improvements to your advertisement by understanding what is happening with it by analyzing your metrics.
You can increase your return on investment by monitoring ad metrics (ROI)
When you start a campaign, you allocate a portion of your marketing budget to the ads. You want to make sure you make the most of every dollar you invest and use your budget wisely.
Ad metrics tracking allows you to determine whether you are receiving the desired ROI. If not, you can make changes to raise your ROI.
14 advertising metrics to watch in 2023
Now that you know the benefits of tracking advertising metrics, it is time to consider which metrics you should watch. The following advertising metrics should be monitored in 2023:
1. Bounce rate
Bounce rate is the first item on our list of ad metrics for 2023. The number of people who click on your ad and then immediately leave is known as the bounce rate. These customers will click your ad but won't stay on the landing page long enough to take any further action.
Monitoring bounce rates is important because they show whether or not your audience is engaging with your landing pages. Your audience is more likely to leave your landing pages if you don't give them the required information.
But keep in mind that a higher bounce rate is typical. Expecting a 10% bounce rate for every advertisement you run is unrealistic. A reasonable bounce rate is typically between 60 and 70%.
Therefore, if you see that your ad bounce rate is less than 70%, your ads are functioning as they ought to. If it's higher than 80%, you should start investigating your ads to see what you can change to enhance their effectiveness.
2. Website traffic
Website traffic is the next metric on this list of digital advertising metrics to monitor. A common goal of social media or Google pay-per-click (PPC) campaigns is to encourage users to visit your website, make a purchase, or contact your company.
You must monitor this metric if your objective is to attract visitors to your website. You can determine if your ads bring in qualified traffic by monitoring the traffic to your website. You can check to see if your landing pages appeal to your audience and encourage them to visit your website for more information.
Consider tracking impressions if you're trying to track ad metrics for your company. Audience members don't need to click on or interact with your advertisement for it to have an impression.
Tracking impressions is a great way to learn how visible your advertisement is. Tracking impressions is essential if your company wants to place your advertisement in front of as many people as possible. If potential customers see your ads in their feed or search results, your impressions will let you know.
4. Cost per thousand (CPM)
Cost per thousand (CPM) should be on your list of advertising metrics for 2023 if you track impressions. CPM involves keeping track of how much each 1000 impressions costs your company.
You can determine the value of your investment for your company by monitoring this metric. You can decide whether your strategy needs to be adjusted to generate more impressions and make the most of your budget.
Clicks are another digital advertising metric you should monitor. When you track clicks, as the name suggests, you track how many people click on your advertisement.
Because it allows you to determine whether people are interested in what your advertisement offers, this metric is crucial to monitor. When a potential customer clicks on your advertisement, it does so because the ad's content piques their interest.
Understanding the effectiveness of your advertisements requires tracking this metric. If getting clicks is your ad's primary objective, but you're getting few of them, you may need to optimize your ads to see better results.
6. Cost per click (CPC)
You should include cost per click (CPC) as one of the advertising metrics you track if your goal is to get clicks on your ads. As the name suggests, CPC lets you know how much you're spending each time a user clicks on your advertisement.
To make sure you are making the most of your budget, you should monitor this metric. For instance, you can change your bid amount for PPC ads to help you get more clicks for your budget.
7. Click-through rate (CTR)
Click-through rate is another advertising metric to keep an eye on in 2023. (CTR). The CTR is calculated by dividing the clicks by the impressions. This measurement enables you to comprehend the number of times viewers click on your advertisement.
Understanding whether people interact with your advertisements when they are seen requires tracking this metric. If your click-through rate is low, it might be a sign that you need to modify your ad copy to get more potential customers to click on your ads.
You can enhance your ads to attract more clicks and increase conversions for your company by tracking CTR.
8. Cost per view (CPV)
Cost per view (CPV) should be added to your list of advertising metrics to monitor if you are running video ads. You can keep track of the cost associated with each video ad view using CPV. Ad platforms typically charge you for a view after a viewer watches your advertisement for 30 seconds.
It's essential for video advertising to track this metric. It makes it easier for you to comprehend how many people watch your videos for an extended time and how much it costs to get a view.
By monitoring this metric, you can tweak your video ad campaigns to increase views while lowering your cost per view.
9. Engagement rate
Engagement rate comes next on this list of digital advertising metrics. You can monitor how people respond to your social media advertisements by looking at your engagement rate. Engagements can range from clicking on, commenting, or liking your advertisement.
Finding out whether your audience enjoys your social media ads can be done by monitoring your engagement rate. If your ads receive comments and likes, you're providing your audience with pertinent content.
You can determine which advertisements are successful and which need improvement by tracking engagement.
10. Return on investment(ROI)
ROI will be one of the most important ad metrics in 2023. ROI calculates your profit based on the amount you spent on advertising. For instance, Google Ads typically returns $8 on every dollar invested.
One of the most important advertising metrics to monitor in 2023 is ROI because it shows whether your investment was worthwhile. It enables you to determine whether your current strategy is working or whether you need to optimize your ads to generate more revenue.
You can determine if your advertisement is actually assisting your company in turning a profit by monitoring your ROI.
11. Conversion rate
Conversion rate is another of the most important advertising metrics to monitor. The conversion rate shows how many people convert in relation to those who view your advertisement.
When people hear conversion rate, they immediately default to earning sales. Even though tracking this kind of conversion is important, there are other conversion rates your ads can track. For instance, each person who signs up as a result of your advertisement can be counted as a conversion if you're trying to grow your email list.
By monitoring your conversion rate, you can determine whether your advertisements successfully persuade prospects to take certain actions. A high conversion rate indicates that your advertisements successfully achieve your objectives. If not, you can modify your advertisements to boost conversion rates.
12. Return on ad Spend (ROAS)
Return on ad spend is the following metric in our list of digital advertising metrics. ROAS is a metric that shows how much money you make for each dollar spent on advertising.
Because it shows whether your advertising investment is costing you money, causing you to break even, or generating a profit, ROAS is a valuable metric. In general, ROAS is about $2 earned for every $1 spent on advertising.
You can determine whether your advertising investment is profitable for your business by measuring your ROAS.
13. Cost per acquisition (CPA)
Add cost per acquisition (CPA) to the list of metrics you track for advertising. As the name implies, CPA measures how much it costs your company to bring in a new customer.
With CPA, you consider every element that goes into acquiring a customer. Because a combination of different campaigns typically persuades prospects to convert, you might have multiple ad campaign costs that you take into account.
You can better understand how much it costs to acquire customers by tracking this metric. Based on how much those customers spend, you can use that information to decide whether the cost of customer acquisition is worthwhile.
You can adjust your ad campaigns to cut costs if you discover that the CPA is excessively high compared to the amount that customers spend.
14. Customer lifetime value (CLV)
Customer lifetime value is the final indicator on this list of advertising metrics to watch in 2023. (CLV). This metric shows the value of each customer from the moment they make their first purchase until the moment they stop doing business with you.
You can find out the worth of your customers and what kinds of customers are most valuable to you by calculating your customer lifetime value. With this knowledge, you can improve your buyer personas and go after more qualified leads.