The Confusing World of Data in Marketing
In today’s ever changing marketing climate, it’s hard to pinpoint what criteria is needed to define, create, or analyse a successful campaign. One important aspect to always consider however, is the importance of using data to validate your marketing.
Nowadays, you’ll be swamped with data acronyms such as CTR, CPM, ROAS, and terms such as Reach and Impressions. It’s easy to get confused and become overwhelmed by them. But understanding the basics of what they mean and why they are important is key for a successful marketing campaign. So, this blog will be your handy one-stop shop to understanding Data in marketing!
Reach & Impressions – While these terms may seem similar, understanding the difference between them is vital. Impressions are the whole number of the number of times that your adverts were on-screen. This differs from Reach, which is the number of people who saw your ad at least once. The key difference between the two is that impressions can include multiple views of the same ad by a singular individual. Therefore, your impressions number is always higher than your reach number. According to Influencer Marketing Hub, 29% of brands measure their success based on reach and impressions.
CTR (Click-Through Rate) – A simple yet key statistic in campaign planning and management, click through rate (AKA CTR) is telling you how many people are clicking on your ad’s compared to how many impressions you are getting. The simple equation for this is clicks divided by impressions.
CTR is important as it allows you to experiment and test what is and what isn’t working when it comes to your running of your campaign. Is it the wrong audience? Do you need a new creative? Running comparisons on CTR will allow you to determine what works best for your brand and push audiences towards you.
CPM (cost per thousand impressions) – Another simple statistic that helps do wonders for a campaign is CPM. Linking to the impressions term we mentioned early, this is your average cost for 1000 impressions. The equation for this is your overall spend divided by your impressions which you then times by 1000.
When building up overall brand awareness is when this piece of data really comes into its own. It ensures that you are introducing your brand to users and generating knowledge of your brand with the target consumer base within a feasible budget for your company.
ROAS (Return on Ad Spend) – This is a key statistic for helping to measuring marketing campaign success. It measures how much revenue you earn from a single sale and is calculated by taking your overall revenue and dividing your advertising costs. For example, if you made £200 in sales and spent £50 on advertising, your ROAS would be 4 as you are making £4 for every pound you spend on advertising. It is important to note that this is solely factoring advertising cost, no other costs incurred are measured here.
Having read this, you can now say that you have a solid understanding of the basics of data-based marketing! Go forth and learn all there is to learn. As technology continues to evolve, the metrics we can measure will be ever changing so it’s important to keep up to date.
For further support on your campaigns, contact Media Performance today.