How to Measure the Effectiveness of Online Advertising?
Measuring the effectiveness of online advertising is essential to understand its impact and optimize future campaigns. Key metrics to consider include:
Click-Through Rate (CTR): The percentage of users who click on an ad compared to the number of impressions it receives. Conversion Rate: The percentage of users who complete a desired action (e.g., making a purchase) after clicking on an ad. Cost Per Click (CPC): The amount a business pays each time a user clicks on their ad. Cost Per Acquisition (CPA): The cost associated with acquiring a new customer through the ad campaign. Return on Ad Spend (ROAS): The revenue generated from the ad campaign divided by the cost of the campaign.