One of the most memorable quotes in marketing is the 19th-century comment by the famous merchant, John Wanamaker, who stated, “Half of my advertising is wasted; I just don’t know which half.” Fortunately, things are quite different in the 21st century. Today, you can easily tell which “half” of your advertising goes to waste thanks to the evolution of tools and strategies for measuring the performance of your digital marketing efforts. It is a common practice amongst digital marketers to assess the performance of their campaigns, eliminate what is not working, and optimize what is giving them the best return on investment (ROI). Below, we outline some of the key benefits you get from the measurability of digital marketing.
The amount of traffic coming to your website
A key objective of every digital marketing agency or any webmaster is to generate traffic. It is equally important to know the number of visitors coming to your site at a given period of time, for example daily, weekly, or monthly. Measuring the traffic coming to your site helps you to gauge the effectiveness of your digital marketing initiatives through platforms such as search (SEO and paid) and social media. As many would agree, a healthy campaign should result in a steady flow of visitors landing on the site over a period of time. Be careful not to come to conclusions about a digital marketing campaign just hours upon its commencement, give it several days for an accurate picture of how it is doing.
Do not be fazed if the results of paid traffic are not what you expect them to be as that is just about what every digital marketer faces. Sit down and calmly review every aspect of the campaign from ads to target demographics and even the digital marketing channels being used before making any necessary adjustments.
Users’ behaviors on your website
While the tracking of the amount of traffic to a website may seem fairly fundamental, would it not be cool if you could track a user’s behavior on your website? Via some coding by a programmer to implement such features, you are able to track what a user does (eg. clicking on certain buttons, scrolling to various content etc) on your website. This is especially useful for scenarios in which paid traffic (eg. paid search, display ads, social media marketing etc) is driven to particular pages. By carefully analyzing the behavioral data of visitors from paid channels, it allows you or the digital agency to effectively optimize landing pages or even the overall site navigation to achieve specific goals such as getting sign ups, enquiries, e-commerce purchases and much more.
Measuring new vs returning users
Many analytics tools give you the ability to differentiate between new and returning users to your website. As a general rule of thumb, getting an increase in the percentage of returning visitors over time is certainly a good thing as it suggests that your content appeals to these people and they are returning for more.
Measuring of new vs returning users usually works in tandem with the bounce rate of your website. As bounce rates are basically the percentage of users that leave your website after viewing only a single page, it is a direct reflection of how well or poorly visitors are engaging with your website. Should you be experiencing a high bounce rate (usually greater than 50%), it is wise to review how relevant your website is to the audience you are targeting.
Knowing where visitors are coming from
Most of the major analytics tools such as Google Analytics have reports that show you the origin of each visitor that visits your website. Especially if your digital marketing campaigns are targeted at a particular country, this is an important metric that can give you an idea of which channels are performing well and which ones are not. In another scenario whereby you are targeting multiple countries, such tracking will allow you to allocate budgets on the ones that are bringing the greatest ROI.
Measuring Click-Through Rate (CTR) of ads
The most commonly used method of measuring key performance indicators (KPI) is Click-Through Rates (CTR). Measuring CTR is a core activity of every online marketing agency in Singapore that deals with plenty of digital advertising work. CTR gives you a percentage of the people clicking your banners or text ads to land on your site. To give you an idea of how this works, if an ad is shown to 100 people and only 1 person clicks on it, the CTR is 1%. Hence, a high CTR indicates good performance of an ad and a low CTR means the ad needs to be worked on a little bit more to improve efficiency.
Measuring conversion rate
Above all, you need to measure your conversion rates, a key metric that any digital agency in your country will place at the top of its list in terms of priority. Conversions, as you probably realized by now, consist of “end goals” of digital marketing initiatives such as enquiries, app downloads, e-commerce store purchases and other actions of this kind. In most cases, conversion rates define the success or failure of a digital campaign. If you experience low conversion rates over a period of time, be sure to assess key aspects of your website such as its overall design, relevance to the audience, engagement, navigation, the check-out process (in an e-commerce scenario), and all other aspects pertaining to your digital marketing.
With so many options available, measuring your digital marketing campaigns can seem daunting at the start. Still, do not let this deter you. Be sure to give it a shot but if all else fails, be sure to engage the professional help of a digital marketing agency that can help you implement, assess and make the necessary changes to improve the performance of a campaign. Let’s face it, every business person that is serious on leveraging on digital channels must have an array of tools to measure the performance of the various aspects of his or her campaigns.