How to Measure Display Advertising Campaign Success

All campaigns are measured, but with a multitude of goals set and influencing factors, how can you truly determine campaign effectiveness? In the fast-paced and competitive landscape of business-to-business deals, it is easy to focus on conversions as the ultimate goal and deem ROI as the primary metric for success. However, display advertising campaigns are intricate awareness-and-reach strategies that could also engage with the consideration and decision stages, contributing to broader business objectives. Understanding what truly makes a display ad campaign successful, and the intricacies involved, is key to long-term marketing impact.

In the past, pay-per-click (PPC) marketers primarily relied on Return on Ad Spend (ROAS) as their main metric for assessment. While ROAS can provide valuable insights at certain stages, it is essential to recognize that there are a variety of other metrics that warrant your attention and analysis. Metrics that, when you put together, will help you improve your long-term strategies, and not just with display ad campaigns. 

In this article, we will delve into the intricacies of display campaigns, exploring what they entail and the critical KPIs you should also be monitoring.  

Display Ads in a Nutshell

Display advertising encompasses a variety of visual advertisements that appear on websites, apps, and social media platforms. These ads can take several forms, including banners, videos, and interactive media. The goals of display advertising vary depending on the campaign’s objectives. While some campaigns are focused on capturing the attention of your target audience and driving traffic to your website to convert leads into customers, others aim primarily to build brand awareness and reinforce your brand’s presence in the market. 

Display ad campaigns are frequently executed on advertising networks, which serve as intermediaries linking advertisers with publishers ready to display their advertisements. These ad networks provide advertisers with access to a diverse array of potential publishers, thereby assisting in reaching a broader audience. 

Digital advertisements accounted for more than 66% of the total global advertising spend in 2023. They come in various formats, each designed to capture the audience’s attention differently. Banner ads are the most common and typically appear at the top or sides of a webpage. Video ads, on the other hand, can be more engaging as they combine visuals and sound to convey the message. Interactive ads involve elements that users can engage with, such as sliders or clickable components, making the ad experience more immersive. 

Every category of ads comes with its own set of advantages and disadvantages. 

• Text ads are the simplest to produce. These ads can achieve extensive reach, as they can be adapted to fit various placements across many different websites. 
• Static image ads demand more time for conceptualization and design, but they can significantly enhance your brand’s visibility. However, you are restricted to placements that accommodate the specific sizes of the ads you have created. 
• Animated and interactive display ads, as mentioned above, offer the benefit of heightened visibility and allow for more contextual messaging, as text and images can be presented through a dynamic sequence. However, they take the longest to develop. 

Key Metrics for Display Advertising Success

When evaluating the effectiveness of your display ad campaigns, it is important to consider metrics that go beyond just clicks and conversions. Selecting the right metrics is crucial for determining whether your online marketing campaign has been successful. The metric most commonly linked to online display ads is the clickthrough rate (CTR), which can offer a broad overview of how effectively a specific ad performs. However, there are more key metrics that determine success than clicks and conversions. 

1. Impressions

Impressions refer to the number of times your ad is displayed on a webpage or app. This metric indicates the reach of your campaign, helping you understand how many potential customers have been exposed to your ad. A higher number of impressions generally suggests a broader audience reach, which can enhance brand visibility. However, it’s crucial to balance impressions with other metrics to ensure that the ad is not just being seen but also engaging the audience. 

While achieving high impressions and reach are appealing, they don’t automatically signify success. It’s essential to weigh these metrics alongside engagement and conversion rates to gain a comprehensive understanding of your ad’s effectiveness. 

Enhancing impressions and reach requires a thoughtful combination of targeting, content refinement, and platform choice. Customize your ads to connect with various audience segments and select the platforms where these groups are most engaged. Keep in mind that while boosting impressions and reach is crucial, prioritizing the quality of these impressions is just as important. 

2. Clickthrough Rate (CTR)

CTR is the ratio of users who click on your ad to the number of total impressions. A higher CTR indicates that your ad is engaging and relevant to your audience, prompting them to take action. This metric helps you assess the effectiveness of your ad copy, design, and placement. If your CTR is low, you might want to make necessary adjustments to improve your content and visuals. 

Now, improving your CTR requires the creation of persuasive ad content and visuals that correspond with the preferences and requirements of your audience. It’s not merely about drawing in clicks; it’s about securing the appropriate clicks that have the potential to transform into valuable customers. 

3. Conversion Rate

Conversion rate is the percentage of users who complete a desired action after clicking on your ad. This metric measures the effectiveness of your ad in driving desired outcomes and is crucial for assessing ROI. A high conversion rate indicates that your ad is not only attracting clicks but also compelling users to take meaningful actions. Monitoring this metric helps you understand the quality of traffic driven by your ads and whether your landing pages are effective. 

The main goal is to craft a seamless experience from advertisement to action. From your display ads to your landing page, make sure that the messaging, tone, and visuals are aligned with what your brand offers and represents as a whole. This prevents any disconnection and confusion that may discourage users from taking action and converting. Additionally, a landing page that is user-friendly and easy to navigate can greatly improve conversion rates. Streamline the user journey, reduce loading times, and ensure that the call-to-action (CTA) is both clear and enticing. Finally, test out various CTAs and landing page layouts to determine what works better. A/B testing serves as the cornerstone for optimizing the effectiveness of display advertising campaigns. 

4. Cost Per Click (CPC)

CPC refers to the amount you pay each time a user clicks on your ad. Tracking CPC helps you manage your advertising budget and evaluate the cost-effectiveness of your campaign. Lower CPC means you are getting more clicks for your budget, which can lead to a better return on investment. However, it’s essential to balance CPC with other metrics like conversion rate to ensure that the clicks you are paying for are leading to valuable actions. 

Although a minimal CPC is typically preferable, it’s important to evaluate the quality of the clicks you’re getting. Focusing on a particular, pertinent audience might incur a higher cost per click, yet it can enhance the overall effectiveness and ROI of the campaign. Keep in mind that CPC is more than just a cost indicator; it represents how competitive your advertisement is within the B2B landscape. 

5. Cost Per Acquisition (CPA)

CPA measures the cost of acquiring a customer through your display advertising campaign. Simply put, the CPA formula is the cost of the campaign divided by the number of conversions. This metric provides insights into the overall efficiency of your campaign in driving customer acquisition. A lower CPA indicates that you are acquiring customers at a lower cost, which is a sign of an efficient campaign. This helps you understand the financial impact of your advertising efforts and make informed decisions about budget allocation. 

Understanding what you are aiming for with your CPA and fine-tuning these rates allow you to create more efficient campaigns and achieve higher conversion rates at a lower expense. However, CPA is merely one aspect of a larger strategy that focuses on identifying, targeting, and retaining ideal customers. 

6. Return on Ad Spend (ROAS)

ROAS is the revenue generated for every dollar spent on advertising. This metric helps you evaluate the financial return of your advertising investment. A higher ROAS indicates that your campaign is generating more revenue relative to its cost, which is a key indicator of success. By monitoring ROAS, you can assess the profitability of your campaigns and make strategic adjustments to maximize returns. 

ROAS goes beyond merely producing income; it involves grasping the effectiveness of your advertising expenditures. A high ROAS indicates that your marketing initiatives are significantly impacting your company’s overall profitability. 

7. Viewability Rate

Viewability rate is the percentage of ads that are actually viewable by users. Ensuring that your ads are viewable is crucial for effective brand exposure and engagement. A higher viewability rate means that your ads are being seen by a larger portion of your target audience, which can lead to better campaign performance. 

The rule of thumb is to often focus on websites that exhibit high ad viewability, as this leads to improved performance and a greater return on investment for their campaigns.  

Viewability data provides valuable insights into which of your ads are capturing the most attention and visibility, as well as identifying those that may require optimization. Moreover, you can avoid overspending on ad placings that are not being seen by your target audience. This means you can allocate your budget more effectively, ensuring that your resources are directed toward ads that are actually making an impact. 

8. Engagement Rate

Engagement rate measures the level of interaction users have with your ad, such as clicks, likes, shares, and comments. In small to medium enterprises, getting high engagement rates is already considered a marketing milestone. Despite the goal differences, a high engagement rate indicates that your ads do resonate with your audience. This metric serves as a confirmation that you are serving the right content in front of the right audience who may or may not be facing road bumps along their way to conversion. Thus, the call for engagement monitoring is to nurture and boost further product/service interest. 

At this point, you may be thinking, is engagement rate more important than CTR? Engagement Rate and Conversion Rate extend beyond mere surface-level statistics. They offer different insights into ad effectiveness and audience interaction levels, exploring the depth of interactions and the success of advertisements in prompting intended actions.  

Final Words

You might know these metrics and their formulas by heart already. However, the building blocks for success should not always be determined by figures alone. Whether it’s awareness, consideration, or conversion, display ads serve as a dynamic promotional strategy that can influence and engage potential customers, leads, and existing clients. Its effectiveness is maximized when it addresses all three stages concurrently.  

Hence, determining the success of your campaign depends on evaluating multiple metrics in combination rather than focusing on a single aspect. Prioritizing long-term brand development is what made big B2B businesses the frontrunners of today. Remember, KPIs and metrics provide the most value when analyzed together, offering a comprehensive view that’s particularly insightful in performance measurement across longer periods. 

Do you need help with your own display advertising campaigns? We can help you develop your B2B brand into something even bigger.