How to Develop Good KPI’s for Ad Campaigns

Measuring your ad campaign metrics are crucial for your campaigns in order to see what is working and what may need to be adjusted. There is no one size fits all to determine what KPI’s your brand should be using. It will depend on the overall goals of the brand and what the goal is for the campaign. Here are some steps to take when determining what KPI’s to use for your campaign efforts.

1. Look at business goals and objectives. Is your business goal to increase brand awareness or is it to market a new product or service?

2. Set SMART marketing goals for the campaign. 

   1. Specific

   2. Measurable

   3. Achievable 

   4. Realistic 

   5. Timely

3. Write out your KPI’s. Once the SMART goals have been set up, create your list and write it down. Make it clear and concise for your employees to understand. 

4.  Decide how you will measure. This will also depend on what your goals are. Let’s say you want to increase leads. Therefore, to measure the effectiveness of this campaign you would measure new subscriptions. 

You can see why a brand can’t use industry standard KPI’s due to the personalized nature of business goals. Using KPI’s will assist your brand in tracking the progress of marketing campaigns. Just a few common KPI’s that are tracked would be ROI, cost per acquisition, customer lifetime value and conversion rates. These are only just a few of many. Focus on crucial metrics between 2-4 KPI’s per campaign as to not get overwhelmed with too much data.

And as always, we suggest using some User-Generated Content! The ROI is always much higher. Real people trust real people!

Key Performance Indicators

What is a KPI and why do they matter? We keep seeing this thrown around the advertising and marketing world so we thought it would be good to touch base on what they are exactly and why they are important. KPI’s are quantifiable measures of performance in order to gauge progress and insights in particular areas of your business. KPI’s are target that should be tracked because they support the overall goals of the brand through keeping the team aligned, checks on the organization to spot problems, helps allot for adjustments that need to be made if something isn’t working by analyzing patterns and it will hold the whole company accountable. KPI’s are found in every area of a business from finance to advertising campaigns. There are literally so many to list we couldn’t do it all in one article. However, we will list a few for example that pertain to marketing.

1.     Qualified leads. This can be done as marketing qualified leads or sales qualified leads. Either way, it shows the marketing team how many leads are coming in and how many are talking to the sales team.

2.     ROI. You’ve heard this one a lot in our articles. It’s insanely important. This is the amount of revenue in versus how much is spent.

3.     Funnel conversion rates. This is the percentage of visitors who complete some desired action. Examples would be signing up for a newsletter or purchasing a product.

4.     Customer acquisition costs. This is a measure of the amount of money to convert a lead into a customer.

5.     Customer engagement. This can be tracked very well in social media through likes, shares, saves, mentions and comments.

6.     Customer retention. Helps you better understand your audience. Your “turnover” rate for your customers can give your brand insight into what may or may not be working.

KPI’s can help your brand make more informed and better decisions within the company. Choose the KPI’s that will matter most in your marketing department and that will align with the brand’s overall vision. Tracking your progress is the best way to secure a well-founded marketing strategy for your brand!