You launch contextual advertising for cleaning business – you need to monitor its effectiveness and promptly make adjustments if the results are unsatisfactory. But what indicators do we have to rely on?
We have collected 8 important metrics that will help analyze the effectiveness of an advertising campaign and identify problems that need to be improved.
One of the basic indicators in online advertising. The metric allows you to find out how many times your advertisements are clicked by potential customers.
Clicks are important as an individual metric and are also used to calculate other metrics (such as CPC and CTR).
This indicator allows you to find out the number of unique users who visited your cleaning business website during a certain period.
To identify each user, the analytics system uses a certain set of parameters:
If these parameters are changed (for example, the user deletes all cookies and reinstalls the browser), when re-entering the site, the analytics system will count the visit of a new unique user.
Therefore, there may be errors in the metric.
A base metric that displays the number of times your ad has been shown to users.
The metric has several practical uses:
Data on the number of impressions can be viewed in any report of the advertising system (Google Ads):
When analyzing user behavior on your cleaning business website, it is important to understand the level of engagement – the user’s interest in the cleaning content and / or functionality of the website. Two metrics are mainly used to evaluate engagement:
CTR (click-through rate) is an indicator of the clickability of ads. Click-through rates are calculated using data from two other metrics – clicks and impressions. Here is the CTR formula:
Number of clicks / number of impressions * 100% = CTR
For example, an ad was shown 880 times and received 15 clicks. Substitute these values into the formula and calculate the CTR:
15 / 880 * 100% = 1.7%
CTR is one of the most important metrics in contextual advertising. With it, you can quickly understand whether an advertising campaign is effective or not. If the CTR is low, most likely the ad does not meet the needs of the target audience or is shown for irrelevant queries. If the click-through rate is high, this indicates that the ad is relevant to those to whom it is shown and people are actively clicking on it.
CTR is also important for the following reasons:
Use the maximum number of extensions in ads – this way your ad will be more visible in the search results and stand out from competitors.
The conversion rate is a metric that allows you to determine the percentage of users who have completed the target action on the cleaning business website. For example, the percentage of users who placed an order for cleaning services after clicking on an ads
Formula for calculating the conversion rate
CR = Number of conversions / Number of clicks * 100%
Let’s say we got 500 clicks on an ad and 9 orders on the site. Substitute these values into the formula and calculate the conversion rate:
9 / 500 * 100% = 1.8%
To track your conversion rate, you need to:
CPC (cost-per-click) determines the average cost per click on an ad. The cost of each click is formed individually, during the auction. In the advertising system reports, you can view data on the average CPC for the selected period.
In advertising systems, there is a limit on the minimum cost per click:
in Google Ads – 1 cent
There is no upper limit on the cost of clicks. It is influenced by the specifics of the industry (general competition and demand), the level of competition between advertisers at the time of a particular auction, the quality of ads, and other factors.
CPO (Cost per Order) is a relevant metric for a cleaning business website, where the main goal of advertising campaigns is to get new cleaning orders.
Formula for calculating the indicator:
Advertising spend / Number of orders = CPO
This metric is actually a special case of CPA (since an order is also a target action). If the main target action of the campaign is a placed order, then CPA and CPO will denote the same indicator.
Use measurable indicators to track the effectiveness of contextual advertising, optimize campaigns in time and get more conversions to your cleaning business website.
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