Basic performance marketing metrics
In online marketing, we encounter various metrics every day, which are an inherent part of performance marketing. Whether you're managing paid ads on Google, Facebook, or creating email campaigns, you can't do without metrics.
But what do all those abbreviations and terms mean? We will explain this in today's article. Marketers use marketing metrics to measure the effectiveness of campaigns and track progress over time. They show us what works well and what we need to pay attention to. The metrics themselves are different and may vary by platform. They communicate the value your business provides to society as a whole.
The conversion rate expresses as a percentage how many people out of the total number of visitors to the website took the desired action on the website. The most common actions include:
Assisted Turnover is the value of orders that Tanganyika has assisted to help complete the order. This means that, in the decision-making and purchasing process, the customer came across an advertisement from Tanganyika, which influenced his decision, but his path to purchase then led directly through another source.
The customer does not have to make the purchase directly. Your website may be visited several times before a conversion occurs. That's why attribution models are used as marketing tools that determine how the conversion value per sale will be distributed among the touchpoints. There are several attribution models, and each one allocates conversion value differently.
This metric shows the percentage of users who visit your website, take no action, and leave the site immediately. A high percentage of this measure indicates that the quality of your site's content is low and won't keep visitors on the site.
The CTR metric measures the total number of clicks on an ad in proportion to the total number of ad impressions. If the CTR is low, it is advisable to use more keywords to improve.
CPC is the amount you pay each time a user clicks on your Google Shopping ad. This amount is determined by your highest bid and how your ad compares to other competitors.
ROAS indicates the return on investment in advertising. In Google Shopping, this term is also used in connection with the bid strategy, which is called Target return on investment in advertising. ROAS measures how much your e-shop earns per 1 EUR spent on advertising.
The value of COS is the percentage between the cost of advertising and the generated turnover that was obtained thanks to this advertisement. Each e-shop is different and the PNO value shows different conclusions for each. For some e-shops, 20% PNO is a high value, some e-shops are happy with this value. Everyone's common goal is to have maximum turnover with such a PNO, during which I will not lose.
A metric that tracks the total number of users who saw your ads on Facebook.
Impressions indicate how many times your ads were shown to users. It gives an idea of how popular your ads are.