Marketo-DG2DA

PART IX: MEASUREMENT
METRICS
Engagement Rate
The engagement rate is a measure of
the level of engagement an ad
received. It is the percentage of
people who engaged with an ad. On
Facebook this would be likes, clicks,
shares, and comments. While clickthrough-rate
measures the efficiency
of an ad, it doesn’t measure the
engagement if that engagement is
not a direct click.
Conversions
Conversions is the metric that tracks
how many actions or acquisitions
were completed based on an ad. This
metric is specifically important in
campaigns that are based on a
cost-per-action or cost-perdownload.
With those types of ads,
each action or download is
considered an acquisition.
Cost-Per-Lead (CPL)
The cost-per-lead (for B2B
companies), is also known as the
cost-per-target, and cost-per-MQL
(Marketing Qualified Lead),
depending on how your
organization’s path to purchase is
mapped. This metric measures
how cost effective your
advertising campaigns are when it
comes to generating new leads
for your sales team.
This metric is closely tied to other
key business metrics, such as the
cost to acquire new customers
(which spans all marketing and
sales programs). It is used to give
you a base to understand how
much money is appropriate to
spend on acquiring new leads.
Effective Cost-Per-Thousand (eCPM)
The effective cost-per-thousand is
calculated by dividing total earnings
from the ad by total number of
impressions in thousands. It was
developed as a measurement tool
because CPM can sometimes be
misleading—there are often
exceptions that make the actual cost
per thousand different than the
set price.
Let’s look at an example where eCPM
would be an important metric to
track: an organization that’s
advertising to an extremely targeted,
niche segment may get less than
1,000 impressions but will pay for the
full unit of 1,000. A larger brand may
only pay for 1,000 impressions when
they actually get 1,500.
The eCPM is a measurement
developed to help advertisers
account for these types of
discrepancies as a way for them to
see the true return on investment.
Basically, did they get what they
paid for. Did they get more, or less?
This is an important measurement
because it helps advertisers
determine the success of their ad
programs so they can make
decisions about future ad buys.
To reiterate, CPM is what an
advertiser pays, while eCPM is a
metric that helps marketers
make decisions.
Total Earnings
eCRM = X 1,000
Total Impressions
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