First expression you need to handle… “impression”.
This is the number of times an advertising has been displayed. It’s a bit like the number of printed copies of your favourite magazine.
Imagine you place and ad in that same magazine printed 100.000 times.
Every single reader won’t really see your ad. Each of them will go through all the pages – including the one with your ad – and from time to time one’s eyes will pick out your ad.
The same happens on your screens… scrolling down your news feed on Facebook is exactly the same as looking through your magazine. Ads are published on this news feed and each of them counts as one impression.
Whether you click on the ad or not… whether the web user sees it or not…. A published ad = one impression.
Your ad got 100.000 impressions.
But who exactly was interested? Who clicked on it?
Where your magazine couldn’t give you a reliable answer the Internet comes with a precise measure, the CTR.
If you have a 1% CTR that means that out of the 100.000 impressions, 1.000 people clicked on your ad.
1000 people clicked on your ad. Among them you are interested to see who converted. By conversion we mean an act you are looking for. And it’s not only buying goods or services. It can also be…
- Downloading a document
- Sending a form
- Visit of a specific page
If you have a 3% conversion rate that means that out of 1000 that clicked, 30 converted!
If the conversion is about a purchase, you should consider the global basket with either one or several products.
It’s the amount you pay per click on your ad.
You got 1000 click for a campaign that cost 500€, your CPC = 0.5€
As it indicates your Return On Investment (ROI) this KPI is really important for your business.
30 people bought a product on your website thanks to your campaign that cost 500€.
The acquisition cost is 500€/30= 16.66€.
This amount is your break-even for each purchase on your website.
This indicator shows you how much a campaign cost to reach 1000 people.
Your 100.000 impressions campaign cost 500€… Your CPM is 5€.
Once you master these 6 Key Performance Indicators, download our FREE PDF.
This 14 pages document will help you calculate the results of your online store.