Need an easy way to measure online ad success?
When you run online ads – whether it is on Google, a blog or social media – here is a quick way to see if your ads are working.
One key metric you will get is AD IMPRESSIONS / REACH. This is the number of times your ad appeared to potential customers. If your ad impressions (or reach) for your ad campaign is not at least 10,000, I’m not sure you are going to make any sales. Here is why:
If we take the benchmark 1% rule, this means that 1% of ad impressions should turn into clicks, and 1% of clicks should turn into sales.
Therefore, 1% of 10,000 ad impressions means you should get at very least 100 clicks. Of those 100 clicks, again, at very least 1% should turn into orders. 1% of 100 clicks is 1 order.
Therefore, at a bare minimum, 10,000 ad impressions will lead to 1 order. But this is just a benchmark and obviously will vary depending on the product, ad creative, etc.
If your ad creative is very effective, causing your click through rate to be more like 5% of ad impressions, then this means those 10,000 ad impressions will turn into 500 clicks. Then, maybe if your sales conversion rate is also very good at 5%, then this means those 500 clicks will turn into 25 orders.
So, if you only got the basic 1% conversion, and let’s say you were paying .20 cents a click, this means you spent $20 to get 1 order. If the order is for $200, that’s great, but not so great if it is only for $25.
However, if you had the 5% conversion rate, and paying .20 cents a click, this means you spent $100 to get 25 orders. Even if each order is only $15 ($375 total order), this is a fairly good return.
FINAL THOUGHT: If you are not getting at least 10,000 ad impressions, you either need to increase your ad budget and/or change your keywords. If your clickthrough rate on ad impressions is 1% or less, you have to change the ad creative and/or the demographics of who is seeing it.
Be sure to also read: My Simple Tip for More Cost-Effective Ads. If you need to understand and improve your ad strategy, be sure to set up a 1:1 Phone Consultation with me.
By the way, I was quoted in an article in US News & World Report last week, called Low Cost Home Based Business Ideas, if you wish to check it out.
©2022 Gail Oliver. All rights reserved. An Easy Way to Measure Online Ad Success
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