Whether you’re a traditional marketer upskilling in digital media, a marketing generalist or just an overworked digital marketer, chances are you have heard / are hearing / will hear these key digital marketing measurement terms. Understanding them is the first step to critically analysing your digital media performance.

IMPRESSIONS

What is it?
This is what real life mad men refer to when they talk about getting eyeballs. Impressions are the measure of how many times an advertisement was seen, this includes users that may have been exposed to an ad more than once.

Why does it matter?
Impressions are the most basic metric and very widely used across digital as a basis for many other metrics such as CTR (see below). In social it may be indicative of how good your creative is due to its shareability but this metric alone is not enough to confirm this.

How is reach different?
If impressions measure how many times an ad was seen, reach measures the number of people that saw it and this will likely be lower than impressions because some may have been exposed to the ad multiple times.

CLICK THROUGH RATE (CTR)

What is it?
Unlike the aforementioned which focuses on ad exposure, CTR can give us a deeper insight into how successful the ads messaging was. Expressed as a percentage of total impressions, a CTR shows the people who were exposed to your ad and liked it enough that they clicked on it.

Why does it matter?
If you have a higher CTR it means your campaign has created interest in your target audience. This could be because of the messaging, the product or an effective call-to-action (CTA).

COST PER ACTION (CPA)

What is it?
Unless you’re just trying to convey a message without requiring action from your audience, an ideal scenario for advertisers is to pay only for the results they’re seeking, this is CPA. This common pricing model is used by publishers to only pay each time the specified action is made, usually by a fixed rate or auctioning system. Cost per click (CPC) is a common derivation of this model which means that the advertiser only pays each time the ad is clicked on.

Why does it matter?
If the campaign strategy is to gain more conversions (see below), the advertiser only has to pay for those ads that actually led to the desired action and this optimises the spend and minimises spillover. Because of the pricing structure it also means that some publishers are more likely to put your ad in front of the people that will take action.

COST PER THOUSAND (CPM)

What is it?
This is the pricing model if you’re preference is to get as many impressions as possible. You pay for reach rather than conversions and the publisher makes their money for every 1000 ads served whether it leads to an action or not.

Why does it matter?
The publisher gets paid the more it serves the ad and this is great for any campaign strategy seeking brand awareness or that has a tried and tested effective creative.

CONVERSIONS

What is it?
Once your ad has done the hard work and led the consumer to make the desired action this is considered a conversion. This could be a purchase, membership signup or download.

Why does it matter?
Conversions are the ultimate action that you want your audience to take. The more conversions you make the more successful your campaign was.

ORGANIC TRAFFIC

What is it?
This is the best kind of traffic because it means visitors are getting to your site on their own. Organic traffic is often generated by unpaid search results from search engines like Google, Yahoo or Bing or from back-linking on other sites around the web such as social media pages.

Why does it matter?
Organic traffic may indicate that people have a natural interest in your product or service, that your brand has a high awareness or that a campaign has been successful in creating return visitors.

Interested in learning more about the world of digital marketing and how a strategy can effectively help your business? Send us a message or give us a call with any further questions on all things digital.