How to Measure the Effectiveness of Paid Advertising?
Measuring the effectiveness of paid advertising is essential for optimizing marketing strategies. Key metrics include:
Click-Through Rate (CTR): The ratio of users who click on an ad to the number of total users who view it. Conversion Rate: The percentage of users who complete a desired action after clicking on an ad. Cost Per Click (CPC): The amount paid by the advertiser for each click on their ad. Return on Ad Spend (ROAS): The revenue generated for every dollar spent on advertising. Impressions: The number of times an ad is displayed, regardless of whether it is clicked or not. Engagement Rate: The level of interaction users have with an ad, including likes, shares, and comments.