There is nothing more frustrating than putting all your time, effort, and money into something and not knowing if all your hard work has been paid off. This is especially true for business owners. The success of their business relies on knowing what works and what does not. Advertisements are a crucial aspect to the success of a business. Without them, business owners would not be able to reach their target audience, reach their goals, or inform potential customers about their products or services.
In the world of business, data plays a major role in a variety of ways. As a business owner, wouldn’t it be nice to know how to use that data to prove that your ads work, and you are not wasting your time? Continue reading and learn just how data can prove your ads work.
Do My Ads Really Work?
One way to find out how well your ads are working is by determining the click-through rate, or CTR. CTR is the percentage at which your pay per click, or PPC, ads are clicked, and can be used to measure how well your keywords and ads, and free listings, are performing. The CTR is determined by the number of clicks that your ad gets divided by the number of times your ad is shown, also known as impressions. In other words, it is the percentage of individuals who click your ads (clicks) divided by the ones who view it (impressions). For instance, if your ad had 20 clicks and 100 impressions, then your CTR would be 20%.
Attaining a high CTR is important to your PPC success because it directly affects your Quality Score and how much you spend each time someone clicks your search ad. Your Quality Score is Google’s rating of the value and significance of your keywords and PPC ads. It is used to figure out your cost per click (CPC) and multiplied by your highest bid to determine your ad rank in the ad auction process. As far as what represents a good CTR, the average is around 1.91% for search and 0.35% for display; however, there isn’t a magic number. The average CTR will differ by industry, and your anticipated CTR depends on your ad’s position as well as other factors.
Another way to use data to prove your ads work is by determining the engagement rate. Engagement rate is crucial in understanding social media. In other words, it is the way to gauge how people interact with the information you publish. Engagement illustrates how people actively interact with your content through likes, comments, and shares.
Engagement is the measurement that will provide you with a brand-new outlook on your performance on social media. It is important to calculate the engagement rate on social media because of the interaction. Social media was created to motivate people to interact with content and with one another. Engagement rate is the only measurement that will always inform you if your information resonates with your audience.
Understanding how to calculate the engagement rate allows you to see what is working and lets you adjust things when they are not. There are different social media engagement formulas you can use to determine the engagement rate, but the traditional one is total engagement (likes, shares, etc.) divided by the total number of followers (impressions). The result provides you with a very general idea about the level of engagement.
Determining click-through rates and engagement rates is essential to knowing whether your ads and their content are working. Without this information, you will not know if your target audience is being reached or if something needs to be changed. If you are having a hard time figuring out if your ads are successful, contact Intergetik today. We would be happy to help you anyway we can!