With offline marketing, it’s difficult to measure the results of your marketing campaigns. For example, if you place an ad in a newspaper and on a billboard simultaneously, you can’t know exactly how many people viewed the newspaper ad or how many viewed the billboard ad. What can be more frustrating is knowing which ad is more effective and which ad to invest in.
However, digital marketing doesn’t have such issues. In fact, with digital marketing, you can measure everything worth measuring. From when the ad is clicked to when the visitor leaves the page. Everything! You are able to determine how many people saw your ad, how many sales resulted from the ad, and ultimately, your return on investment (ROI). Data analytics software (such as Google Analytics) and social networks or ad platforms (such as Facebook Ads and Google Ads) metrics make this monitoring or measurement possible.
However, it is important that you prioritize the most important data because there are many trackable metrics. This important data is called key performance indicators (KPIs). KPIs are those metrics that are related to the objectives and goals outlined in strategy planning and represent an effective business outcome. Some examples of KPIs are:
- Cost-per-click (CPC)
- Return on investment (ROI)
- Customer acquisition cost (CAC)
- Customer lifetime value (CLTV)