Measuring the ad performance on your website is critical for understanding how well your revenue stream is optimized. Ad sizes, placements, and color are common measures, but they may not necessarily work for you. As a publisher, you must focus on four prime metrics that give you a clear idea of an ad campaign’s performance.
Let us take a look at them:
4 Ad Performance Metrics You Should Track
CPM (Cost per mille)
CPM stands for advertising cost per thousand views. It is the benchmark used to calculate the approximate cost of an advertisement or ad campaign across various media. CPM can be calculated by dividing how much it costs to place an advertisement by the number of impressions (in thousands) that it achieves. This metric helps compare the difference in ad opportunities based on efficiency and to evaluate the overall campaign cost.
CTR (Click-through rate)
CTR is the ad click-through rate that measures how well an online ad campaign is progressing on a website. It is denoted as a percentage and is calculated by how many times an ad is clicked divided by how many times an ad is shown.
RPM (Revenue per mille)
RPM is the revenue generated per 1000 ad impressions. It is similar to CPM but instead of cost, it measures revenue. It is an especially important metric for publishers. If the RPM of a campaign is low, you should replace the campaign with one that earns a higher revenue and RPM rate.
RPC (Revenue per click)
RPC is the revenue generated per click. It tells you how much the average revenue is for every click on your ads and PPC (pay-per-click) keywords. You can easily understand how much you earn every time someone clicks on one of your ads. Comparing RPC and RPM values can give you insights on your ad spend and the money you earned through the ads.
Streamlining Ad Campaigns with Ad Performance Measurement
Here are some tips to streamline your ad campaigns
with the insights your ad metrics provide:
Use the right data: First-party data can help you optimize your programmatic ad campaigns along with your content.
Capitalize on returning visitors: Play with ad location on pages with returning visitors. Mix and match to maintain the interest of the visitors.
Optimize your content: Find out the type of content that attracts your visitors and optimize your content strategy based on your findings.
Maintain optimal ad placement and size: Place your ads in the middle of the page, use in-image ads at the bottom of mobile web pages, experiment with different ad sizes and positions to check how users react.
Data-driven optimization is the secret to getting the ad revenue you expect. Testing and improving with the help of data insights can help you identify the areas that need attention.