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What are KPIs in Digital Marketing?
Digital marketing KPIs are measurable values that marketers use to track the performance of their campaigns and strategies.
They can be used to assess everything from website traffic to social media engagement to sales conversions.
While each KPI is important in its own right, it’s also important to understand how they all connect.
Why are these KPIs important?
By understanding these connections, marketers can create more effective campaigns and strategies that achieve their desired results.
Digital marketing KPIs are like a well-oiled machine.
Each one plays an important role, and when they’re all working together, they can help you achieve your marketing goals.
Let’s discuss some of the major campaigns and their KPIs
AWARENESS
An awareness campaign is a way to educate people about something that they are not aware of it can be anything a new product or service, or even just a new way of doing things.
Short Explanation:
Suppose a company launched its new electric bike.
But wait, many people have never considered buying an electric car before.
Most of them still have questions in their mind, like: What are the benefits? How does it work? Where do you even charge it?
This is where awareness campaigns come into play. Electric vehicles are still relatively new to the market, and many consumers still need to become familiar with their advantages and drawbacks.
In this situation company will start an awareness campaign that aims to educate consumers about the benefits of electric vehicles, dispelling common myths and misconceptions.
It’s about highlighting the qualities of the car, making it an attractive option for eco-conscious and tech-savvy consumers.
OBJECTIVE
The main objective of an awareness campaign is to increase the reach of the product or service offered by the company to the right audience.
Major KPIs
Spend
Measuring spending in awareness campaigns helps you determine if your investments are generating the desired level of brand recognition and engagement or not.
Impression
Reach is a unique number and impression is how many times the unique person has seen the ad. Hence, in an awareness campaign impression is also another important factor as it helps you see how many times the audience is seeing your ad.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CPM
CPM is the cost per thousand impressions.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
Add Fatigue
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
The Solution:
Change your ads
This could mean using different images, copying, or even targeting different audiences.
Pause your ad for a while
This will give your audience a break from seeing your ad and help to reduce ad fatigue.
CONSIDERATION
A consideration campaign is a type of marketing campaign that aims to reach people who are already aware of your brand or product and are considering making a purchase.
Short Explanation:
Imagine you’re looking to buy a new car. You’ve already researched and know what kind of car you want, but you’re not sure which brand or model is right for you.
This is where consideration campaigns come in. Car companies might target you with ads for different brands and models, highlighting their features and benefits.
The goal of these consideration campaigns is to help you learn more about different car options and to position their brand or model as the best choice for you.
OBJECTIVE
The main objective of the consideration campaign is to increase engagement. At this point, the interaction between ads and the audience is the most important factor.
Major KPIs
Engagement
Measure engagement to check whether your efforts are aligned with your target audience and driving them closer to purchasing your product/service.
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Keywords
Measure keywords to identify which among them are driving relevant traffic and conversions, so you can optimize your bids and budget accordingly.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Quality score
Measuring Quality Score helps identify areas for improvement, leading to more relevant and effective ads, potentially lower costs, and enhanced user experience.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
If you are not getting enough clicks
Fix your ads/keywords or your audience.
If people are visiting your website, but still not engaging.
Work on the Quality Score. Improve your landing page experience for the user.
This is a critical and profound topic. I would like to advise you to please refer to my other blog for further knowledge on this topic, which is entirely devoted to it.
CONVERSION
A conversion campaign is a marketing campaign designed to encourage people to take a desired action, such as making a purchase, signing up for a newsletter, or buying any product/service.
Short Explanation:
Imagine you’re looking to buy a new car. You’re considering two models at the same time of two different brands.
This is where conversion campaigns come in. Both brands might tempt you with special deals like cashback bonuses or low finance rates to tip the scales.
Limited-time offers will run to create a sense of urgency and encourage you to decide before the deal disappears.
These conversion campaigns aim to nudge you from passively considering these cars to actively taking the next step, which could be a test drive, visiting the dealership, or even requesting a quote.
OBJECTIVE
Ultimately, a conversion campaign wants to turn that lingering “hmm, maybe…” into a confident “Yes, I want to buy that!”
Major KPIs
Spend
The amount of money spent on the campaign
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Revenue
Revenue is the money a business earns from selling goods or services.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
ROAS
ROAS tells you how much revenue you get for every rupee you spend on the campaign.
CPM
In digital marketing, a low CPM indicates that your ad is reaching a relevant audience.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
If you have a limited budget.
You need to maximize return on investment, and then prioritize ROAS more.
If you’re in the early stages of building.
You need to focus on brand awareness and acquire new customers, then prioritize conversion rate more.
REMARKETING
A remarketing campaign shows targeted ads to people who have already interacted with your brand, like visiting your website or app. It’s like a friendly reminder, bringing them back to consider a product or service they showed interest in earlier.
Short Explanation:
Imagine a shopper who frequently buys from you, and browses your online store for a fancy pair of headphones, but gets sidetracked and leaves without buying.
Remarketing swoops in like a friendly reminder.
It places ads for those same headphones on the websites and apps that shopper frequents, gently nudging them back to your store with special offers or a “don’t forget about me!” message.
It’s like a personalized second chance to make the sale, reminding the shopper of their interest and enticing them to finally hit that “purchase” button.
OBJECTIVE
Remarketing gives second chances: Because sometimes you need to see a deal twice to believe it and then finally lock it.
Major KPIs
Spend
The amount of money spent on the campaign
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Revenue
Revenue is the money a business earns from selling goods or services.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
ROAS
ROAS tells you how much revenue you get for every rupee you spend on the campaign.
CPM
In digital marketing, a low CPM indicates that your ad is reaching a relevant audience.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
Ads for different stages are different and they chase different audiences.
For instance, the ad for the audience who has added something to their cart will differ from the ads for the ones who have already purchased the product.
The audience who adds a product to the cart will be chased by the ads to encourage them to make a purchase. Their ads could look like these:
- “Don’t miss out! Get [discount]% off your cart.”
- “Only a few left! Don’t miss out on [product name].”
On the other hand, people who have already purchased the product will be chased by the aads suggesting similar products. Their ads will look like this:
- “Here are some recommendations for you based on your recent purchase.”
- “Customers who bought [product name] also loved…”
Why this segmentation matters?
- Higher Conversion Rates:
People in different stages have different needs and motivations.
By showing relevant ads, you’re more likely to resonate with them and nudge them toward the desired action (purchase, repeat purchase, etc.).
Generic ads for everyone might be ignored. - Reduced Ad Fatigue:
Imagine seeing the same generic ad repeatedly.
It gets annoying, right? Segmentation prevents this.
People only see ads relevant to their current stage, making them less intrusive and more likely to be noticed. - Efficient Budget Allocation:
You can allocate your budget strategically.
Ads with discount offers for cart abandoners might get a bigger budget share than general brand awareness ads.
This targeted approach maximizes the return on your investment.
Wasting Budget and Time with Un-targeted Remarketing:
Here’s what happens when you don’t segment your audience:
- Showing irrelevant ads:
Someone who just purchased a phone case doesn’t need another discount on the same case.
This wastes ad impressions and annoys potential customers. - Lower Click-Through Rates (CTR):
Generic ads are less likely to grab attention, leading to fewer clicks and wasted budget. - Missed Opportunities: You miss the chance to nurture recent buyers into loyal customers by not recommending relevant products.
They are second in line during the sales pitch meeting and are responsible for balancing client expectations and helping the team reach campaign goals.
As an Account Manager, you’ll need to have a strong pitch, project management, and overall management skills.
It will be advantageous if you are good at people management and have a basic understanding of the industry.
AWARENESS
An awareness campaign is a way to educate people about something that they are not aware of it can be anything a new product or service, or even just a new way of doing things.
Short Explanation:
Suppose a company launched its new electric bike.
But wait, many people have never considered buying an electric car before.
Most of them still have questions in their mind, like: What are the benefits? How does it work? Where do you even charge it?
This is where awareness campaigns come into play. Electric vehicles are still relatively new to the market, and many consumers still need to become familiar with their advantages and drawbacks.
In this situation company will start an awareness campaign that aims to educate consumers about the benefits of electric vehicles, dispelling common myths and misconceptions.
It’s about highlighting the qualities of the car, making it an attractive option for eco-conscious and tech-savvy consumers.
OBJECTIVE
The main objective of an awareness campaign is to increase the reach of the product or service offered by the company to the right audience.
Major KPIs
Spend
Measuring spending in awareness campaigns helps you determine if your investments are generating the desired level of brand recognition and engagement or not.
Impression
Reach is a unique number and impression is how many times the unique person has seen the ad. Hence, in an awareness campaign impression is also another important factor as it helps you see how many times the audience is seeing your ad.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CPM
CPM is the cost per thousand impressions.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
Add Fatigue
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
The Solution:
Change your ads
This could mean using different images, copying, or even targeting different audiences.
Pause your ad for a while
This will give your audience a break from seeing your ad and help to reduce ad fatigue.
Short Explanation:
In this situation company will start an awareness campaign that aims to educate consumers about the benefits of electric vehicles, dispelling common myths and misconceptions.
It’s about highlighting the qualities of the car, making it an attractive option for eco-conscious and tech-savvy consumers.
OBJECTIVE
The main objective of an awareness campaign is to increase the reach of the product or service offered by the company to the right audience.
Major KPIs
Spend
Measuring spending in awareness campaigns helps you determine if your investments are generating the desired level of brand recognition and engagement or not.
Impression
Reach is a unique number and impression is how many times the unique person has seen the ad. Hence, in an awareness campaign impression is also another important factor as it helps you see how many times the audience is seeing your ad.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CPM
CPM is the cost per thousand impressions.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
Add Fatigue
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
While a certain level of frequency is necessary to ensure your message reaches its intended audience, too much of a good thing can backfire.
Imagine being bombarded with the same ad every time you open a social media app or visit your favorite website.
After a while, you’re likely to tune it out or even develop a negative association with the brand.
The Solution:
Change your ads
This could mean using different images, copying, or even targeting different audiences.
Pause your ad for a while
This will give your audience a break from seeing your ad and help to reduce ad fatigue.
Account Manager
They are second in line during the sales pitch meeting and are responsible for balancing client expectations and helping the team reach campaign goals.
As an Account Manager, you’ll need to have a strong pitch, project management, and overall management skills.
It will be advantageous if you are good at people management and have a basic understanding of the industry.
CONSIDERATION
A consideration campaign is a type of marketing campaign that aims to reach people who are already aware of your brand or product and are considering making a purchase.
Short Explanation:
Imagine you’re looking to buy a new car. You’ve already researched and know what kind of car you want, but you’re not sure which brand or model is right for you.
This is where consideration campaigns come in. Car companies might target you with ads for different brands and models, highlighting their features and benefits.
The goal of these consideration campaigns is to help you learn more about different car options and to position their brand or model as the best choice for you.
OBJECTIVE
The main objective of the consideration campaign is to increase engagement. At this point, the interaction between ads and the audience is the most important factor.
Major KPIs
Engagement
Measure engagement to check whether your efforts are aligned with your target audience and driving them closer to purchasing your product/service.
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Keywords
Measure keywords to identify which among them are driving relevant traffic and conversions, so you can optimize your bids and budget accordingly.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Quality score
Measuring Quality Score helps identify areas for improvement, leading to more relevant and effective ads, potentially lower costs, and enhanced user experience.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
If you are not getting enough clicks
Fix your ads/keywords or your audience.
If people are visiting your website, but still not engaging.
Work on the Quality Score. Improve your landing page experience for the user.
This is a critical and profound topic. I would like to advise you to please refer to my other blog for further knowledge on this topic, which is entirely devoted to it.
Account Manager
They are second in line during the sales pitch meeting and are responsible for balancing client expectations and helping the team reach campaign goals.
As an Account Manager, you’ll need to have a strong pitch, project management, and overall management skills.
It will be advantageous if you are good at people management and have a basic understanding of the industry.
CONVERSION
A conversion campaign is a marketing campaign designed to encourage people to take a desired action, such as making a purchase, signing up for a newsletter, or buying any product/service.
Short Explanation:
Imagine you’re looking to buy a new car. You’re considering two models at the same time of two different brands.
This is where conversion campaigns come in. Both brands might tempt you with special deals like cashback bonuses or low finance rates to tip the scales.
Limited-time offers will run to create a sense of urgency and encourage you to decide before the deal disappears.
These conversion campaigns aim to nudge you from passively considering these cars to actively taking the next step, which could be a test drive, visiting the dealership, or even requesting a quote.
OBJECTIVE
Ultimately, a conversion campaign wants to turn that lingering “hmm, maybe…” into a confident “Yes, I want to buy that!”
Major KPIs
Spend
The amount of money spent on the campaign
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Revenue
Revenue is the money a business earns from selling goods or services.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
ROAS
ROAS tells you how much revenue you get for every rupee you spend on the campaign.
CPM
In digital marketing, a low CPM indicates that your ad is reaching a relevant audience.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
If you have a limited budget.
You need to maximize return on investment, and then prioritize ROAS more.
If you’re in the early stages of building.
You need to focus on brand awareness and acquire new customers, then prioritize conversion rate more.
Account Manager
They are second in line during the sales pitch meeting and are responsible for balancing client expectations and helping the team reach campaign goals.
As an Account Manager, you’ll need to have a strong pitch, project management, and overall management skills.
It will be advantageous if you are good at people management and have a basic understanding of the industry.
REMARKETING
A remarketing campaign shows targeted ads to people who have already interacted with your brand, like visiting your website or app. It’s like a friendly reminder, bringing them back to consider a product or service they showed interest in earlier.
Short Explanation:
Imagine a shopper who frequently buys from you, and browses your online store for a fancy pair of headphones, but gets sidetracked and leaves without buying.
Remarketing swoops in like a friendly reminder.
It places ads for those same headphones on the websites and apps that shopper frequents, gently nudging them back to your store with special offers or a “don’t forget about me!” message.
It’s like a personalized second chance to make the sale, reminding the shopper of their interest and enticing them to finally hit that “purchase” button.
OBJECTIVE
Remarketing gives second chances: Because sometimes you need to see a deal twice to believe it and then finally lock it.
Major KPIs
Spend
The amount of money spent on the campaign
Clicks
Measure clicks to see if your CTA is engaging enough to attract the audience and drive them to your website.
Reach
You are introducing your new product or service to an audience. Hence, how many unique people are now aware of it is a very important metric.
Impressions
Tracking impressions is essential to measure ad visibility and its effectiveness in creating brand awareness among potential customers.
Conversions
Monitoring conversions helps you evaluate the impact of your strategies in converting potential customers into buyers.
Revenue
Revenue is the money a business earns from selling goods or services.
Derived KPIs
Frequency
Impressions are the total number of times an ad has been displayed.
Frequency = Impressions/Unique Users
Unit = Number
CTR
The percentage of the people who clicked the ad or post after seeing it.
CTR = (clicks/impressions) * 100%
Unit = Percentage
CPC
Cost per click.
CPC = Total Cost of Ad Campaign / Number of Clicks
Unit = Currency
CPA
The cost spent by an advertiser for each business, a purchase on a website, or a form submission.
CPA = Total Cost / Number of Acquisitions
Unit = Currency
ROAS
ROAS tells you how much revenue you get for every rupee you spend on the campaign.
CPM
In digital marketing, a low CPM indicates that your ad is reaching a relevant audience.
Dependent KPIs are highly dependent on major KPIs and they are calculated by analysing major KPIs.
The Solution:
Ads for different stages are different and they chase different audiences.
For instance, the ad for the audience who has added something to their cart will differ from the ads for the ones who have already purchased the product.
The audience who adds a product to the cart will be chased by the ads to encourage them to make a purchase. Their ads could look like these:
- “Don’t miss out! Get [discount]% off your cart.”
- “Only a few left! Don’t miss out on [product name].”
On the other hand, people who have already purchased the product will be chased by the aads suggesting similar products. Their ads will look like this:
- “Here are some recommendations for you based on your recent purchase.”
- “Customers who bought [product name] also loved…”
Why this segmentation matters?
- Higher Conversion Rates:
People in different stages have different needs and motivations.
By showing relevant ads, you’re more likely to resonate with them and nudge them toward the desired action (purchase, repeat purchase, etc.).
Generic ads for everyone might be ignored. - Reduced Ad Fatigue:
Imagine seeing the same generic ad repeatedly.
It gets annoying, right? Segmentation prevents this.
People only see ads relevant to their current stage, making them less intrusive and more likely to be noticed. - Efficient Budget Allocation:
You can allocate your budget strategically.
Ads with discount offers for cart abandoners might get a bigger budget share than general brand awareness ads.
This targeted approach maximizes the return on your investment.
Wasting Budget and Time with Un-targeted Remarketing:
Here’s what happens when you don’t segment your audience:
- Showing irrelevant ads:
Someone who just purchased a phone case doesn’t need another discount on the same case.
This wastes ad impressions and annoys potential customers. - Lower Click-Through Rates (CTR):
Generic ads are less likely to grab attention, leading to fewer clicks and wasted budget. - Missed Opportunities: You miss the chance to nurture recent buyers into loyal customers by not recommending relevant products.
Account Manager
They are second in line during the sales pitch meeting and are responsible for balancing client expectations and helping the team reach campaign goals.
As an Account Manager, you’ll need to have a strong pitch, project management, and overall management skills.
It will be advantageous if you are good at people management and have a basic understanding of the industry.