If your small business has a website, you’re probably already paying someone to do your digital marketing. However, digital marketing is vast and covers many things, with innovations happening daily. As with most business activities, it is important to measure the success of any digital marketing efforts you take on by analyzing key digital marketing metrics.
For some, this comes easy but for others, it can be a little harder and overwhelming. In a series of blog posts, I’ll explain the most commonly confused metrics to help you decide whether or not they’ll work toward achieving your business goals.
Impressions
Basic Definition: The total number of times your ads show. This might be as images on the side or top of a website if you pay for display advertising, or as paid search results using AdWords.
Does It Matter: If your business goal is brand awareness, you’ll want your ads to show up for potential customers as many times and places as possible. Think of it as passing out flyers downtown. The question to ask yourself is what you will gain from your ad showing more. Using digital marketing metrics can help you analyze whether your ads are frequent and pervasive enough to be memorable. How will this brand awareness affect your revenue? Although you are paying for a large number of impressions, viewers may not be clicking or taking action based on your ads.
The form of advertising used may also determine the number of impressions your ads will get. If your advertising plan is “pay-per-click,” your daily/monthly budget may be reached with fewer impressions if you have a high clickthrough rate, but have the same effect on your ROI than if it took more impressions to get the same clicks. Incorporating digital marketing metrics into your strategy allows you to measure and optimize these efforts effectively.
Here’s an example:
Imagine your monthly PPC is $1,000. Each of your clicks costs $1, so you can afford 1,000 clicks per month.
In March, 5 out of every 100 people that saw your ad and clicked on it. This means that you totalled 20,000 impressions.
In April, you improved your ad and now 20 out of 100 people click on it. Your total number of impressions for this month was “only” 5,000.
Even though your number of impressions dropped by 75% (20,000 to 5,000) in one month, the net result to your business is the exact same, because it resulted in the same number of clicks.
Depending on your objectives there can be an issue of having too few impressions. You might expect that your ads will be clicked on X many times producing X amount of revenue, but if they don’t show to enough people, this will take longer than expected.
Let’s say you operate in a niche industry, selling only green Mickey Mouse watches in Cincinnati, Ohio. Imagine that you’ve hired an AdWords manager to bring clicks to your e-commerce website. Very few people in Cincinnati are likely searching Google for green Mickey Mouse watches, so your ads will likely not show very often. Since people won’t see your ad there will be very low amount of clicks.
Many advertising services offer pay-per-impression plans (PPM), and it’s important to know that it’s quite possible that your expenses are being measured using a “metric” that is not directly related to your revenue stream. In other words, your expenses are being measured based on the first step in the purchase process (awareness), and not allowing you to properly gauge how they relate to the last step of the process (buying decision).
Understanding the right digital marketing metrics is crucial to ensure your campaigns align with your revenue goals. Keep an eye out for more posts around the key digital marketing metrics your business needs to know and measure.
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Frequently Asked Questions
Why are Digital Marketing Metrics Important?
Digital Marketing Metrics are crucial because they provide insights into the performance of your campaigns. By tracking the right metrics, you can determine whether your marketing efforts are driving the desired results, such as increasing website traffic, generating leads, or boosting sales.
What is the Role of Impressions in Digital Marketing?
Impressions in Digital Marketing Metrics refer to the total number of times your ad is displayed on a website or platform, whether or not it is clicked. If brand awareness is your goal, having more impressions helps you reach a wider audience and increases the chances of your message being seen and remembered.
How Do Impressions Impact My Digital Marketing Campaign?
Impressions are an essential Digital Marketing Metric when your goal is visibility. However, having a high number of impressions does not always guarantee success if those impressions don’t lead to clicks or conversions. It’s essential to balance impressions with other metrics, such as click-through rates (CTR), to ensure your campaigns are both effective and cost-efficient.
Can Low Impressions Affect My Digital Marketing Goals?
Yes, low impressions can be problematic if your goal is to increase awareness or visibility for a specific product or service. However, low impressions can be offset by higher engagement (clicks or conversions) if your ad is well-targeted and optimized. Digital Marketing Metrics allow you to evaluate this balance and adjust strategies as needed.
How Do I Know If My Digital Marketing Metrics Are Aligned with My Business Goals?
To ensure that your Digital Marketing Metrics align with your business goals, track the metrics that are most relevant to your objectives. For example, if your goal is to generate leads, focus on conversion rates. If you’re aiming for brand awareness, impressions and reach may be more important. Regularly review your metrics to adjust your strategy for maximum impact.
