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How To Measure Your Online Marketing Success

Last updated 7 years ago

Do you currently advertise online, but are not quite sure how to measure success?  How do you know if your online marketing plan is actually effective?

Here are seven performance metrics that are important for evaluating success:

1) Qualified reach / Qualified visits - This metric looks at 2 important aspects: quantity (number of consumers) and quality (those consumers that have done something desirable.  For example, they called to schedule an appointment).  This metric focuses on actual behavior of the consumer.

2) Clickthrough rates (CTR) - Clickthrough rate represents the number of clicks on your ad divided by the number of times your ad is shown (impressions).  For instance, if your banner ad was shown 100 times (100 impressions) and it received 2 clicks, then the CTR would be 2%.

3) Brand perception lift - Brand perception analyzes the change in brand awareness between a target audience and a control group that was not exposed to your message.

4) Engagement score (ES) - The ES analyzes how well a consumer is attracted to your ad or content.

5) End action rate - End action rate signifies the consumer's actions, or in other words, a conversion.  This metric is critical; you need to know if your ad compelled consumers to respond in the form of a phone call, form completion, and so forth.

6) Efficiency metrics - These metrics include cost per click (CPC), impressions, number of leads, etc.

7) Return on investment (ROI) – Undoubtedly you want to make sure your investment in online marketing paid off.  You need to determine if there were improvements in customer acquisition, sales, and retention.

Here are the top performance metrics used by companies in March 2011:

With a specific performance metrics plan, you will be able to better connect the dots.

How do you measure success in your online marketing efforts?  Do you use any of the top performance metrics mentioned?  Why or why not?

About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore.  His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies.  He manages over $1,000,000 in yearly marketing budgets and has worked with local businesses, agencies and the US government.  Give him a call at (877)655-3438 to schedule a free consultation.



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