Have you ever heard of the term digital marketing metrics? Digital marketing metrics are a collection of values that are used to measure and track the success of a product marketing effort using digital marketing. These measurements are usually done with the help of tools such as Google Analytics.
The measured metrics can be an indication of whether your digital marketing efforts have been successful. So, you can determine the next strategy.
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Must-know Digital Marketing Metrics
Because there are quite some digital marketing metrics, they can be divided into several categories, including website traffic metrics, engagement metrics, conversion metrics, and revenue metrics.
1.Website Traffic Metric
Website traffic metrics focus more on measuring website traffic performance as the center of online activity. what are these digital marketing metrics?
- Overall Traffic
Overall traffic is the total amount of traffic on a website, either from organic traffic, paid search or direct traffic. To find out overall traffic, use digital marketing tools such as Ubersuggest, Google Analytics and so on. Each tool usually has its name to call the overall traffic.
The higher your website traffic, the greater the chance of conversion or sales. The overall traffic graph can be the main basis for determining what strategies should be taken for the future.
- Channel Metric
Traffic that enters the website can come from several sources or several channels. Each channel can contribute a lot of traffic and it can also not contribute a lot of traffic. By examining channel metrics, you can estimate which sources have the most potential for driving traffic and which channels need improvement.
- New vs Returning Visitor
Website visitors are divided into two, namely new visitors and returning visitors. New and returning visitors will be distinguished based on historical visits to the website. New vs returning visitor metric data can provide an overview of how successful digital marketing efforts are to increase the number of visitors and make visitors return to the website.
- Exit Rate
Exit rate is a metric that shows the number of times a visitor visits from one page to another until leaving the website. Exit rate can provide an overview of the performance of the website page. The higher the percentage of the exit rate on a page, the more likely that page needs attention. You can see this exit rate metric in digital marketing tools like Google Analytics.
By looking at the exit rate data, you can re-evaluate the pages that are most often left by visitors. You can for example audit speed, display, or content updates.
2.Engagement Metric
Engagement metrics are very useful for measuring the interaction between the audience and the digital marketing that is being carried out. Some of the engagement metrics include:
- Bounce Rate
Bounce rate is the percentage of visitors who leave the website page without doing anything, either to fill out a form, subscribe to a newsletter, click a CTA to make a purchase.
If the bounce rate is high, the less likely you are to lead consumers to buy products or you just get lads because they have already left. In addition, if the visitor comes from Google, the website is considered not suitable for the needs of the audience. Google will not recommend your website for similar needs on search engines.
- Average Time on Page
Time on Page is a metric that shows how long a visitor is on a website page. When you create a blog content and then the audience reads the content to the end, then it shows high engagement. Engagement of a page can be calculated from the average time of visits per page from each visitor or the average time on page.
To calculate this metric there is a certain formula, but you don’t need to calculate it yourself. You can view detailed report details in Google Analytics.
- Pageviews per Session
Pageviews per session is the average number of pages viewed by a visitor in one visit session. This metric is calculated when someone comes to a page on your website and does not immediately leave but goes to other pages on your website. The more pages that are visited in one access, the higher the number of pageviews per session.
- Impression
Impression is a metric used to measure the total number of people who viewed your content (viewers). In digital marketing, this metric can be found in all marketing channels such as Google AdSense, Instagram Ads, Facebook Ads and websites. With impressions, you will know how many times a page from Google search results has been viewed by a user.
- Engagement Rate
Engagement rate is a metric used to measure how active visitors are with the content created. This metric can be applied to various digital marketing platforms such as social media. Engagement measures the interaction your audience has with your business. For example on social media, engagement rate will measure metrics in the form of likes, comments, shares, not just the number of followers.
3.Conversion Metric
Conversion measures the number of actions target consumers take according to your business strategy goals, such as buying products, registering for membership and others.
- Click Through Rate (CTR)
Click Through Rate (CTR) is the ratio of the number of clicks to impressions. Using this metric, you can measure how much percentage of the effectiveness of your digital marketing content is. For example, if you have blog content, it turns out that the promo post was seen by 100 people and 10 people clicked on the link, the CTR is 10%.
Ideal CTR figures from Display Ads and Search Ads in each industry. CTR is very dependent on impressions and clicks so make sure that your content gets a lot of impressions first and then optimizes it to bring in more clicks. To increase CTR, you can try different types of Ads or ads. The goal is that you can map out what kind of ads are effective in reaching visitors.
- Cost per Click (CPC)
CPC is a digital marketing metric that calculates the cost to be paid for each click on your ad. Is your strategy to use the ads with the cheapest CPC or the ones that bring in the most clicks? Whatever it is, use data from marketing tools. Consider that Google Ads and other marketing platforms will lower costs if the ad has a high number of clicks as long as the ad is attractive and relevant to the needs of the visitor.
- Cost per Lead (CPL)
If CPC is calculated based on clicks, CPL (Cost per Lead) calculates the cost per lead or potential user. Therefore, you need to consider the costs incurred to get new leads or potential users.
- Conversion Rate
Conversion rate is a metric that measures the effectiveness of your landing page in getting visitors to click the CTA button, make a purchase, download an ebook and so on. So, you know what percentage of website visitors convert.
To increase the percentage conversion rate, you can do the following:
- Maximizing CTA with relevant and persuasive sentences
- Perform A/B Testing to choose the best design version
- Monitor with Conversion Tracking changes of conversion rate
4.Revenue Metric
As the name implies, revenue metrics are used to analyze the success of your product sales. At least, there are some important metrics to understand:
- Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a metric to measure the cost of getting consumers. To find out CAC, you can calculate the total marketing and sales costs divided by the total new customers.
- Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is a metric to measure the profit after placing an ad to sell a product. Using these metrics, you can analyze and evaluate the effectiveness of revenue-generating ads across multiple channels.
- Return on Investment (ROI)
The last digital marketing metric is Return on Investment (ROI). You can calculate the return on investment from digital marketing that is run. The higher the ROI level, the greater the profit.
FAQ
What are marketing metrics?
-Marketing metrics are measurements of the results of marketing activities or commonly referred to as marketing performance.
Why is it so important for companies to measure marketing performance?
-Measurement of marketing performance will be an important factor because it can be used as an evaluation or benchmark for marketing activities. One of the measurements using financial metrics is calculating how profitability and marketing costs are used.