Ways to Measure the Success of a Campaign
June 24, 2022
Sometimes, ignorance is bliss.
The calorific content of your daily caramel macchiato? No thank you, Starbucks!
Unfortunately, a surging cost-per-lead or tumbling engagement rate can’t be glossed over so easily (if only!).
Because although smooth execution is vital to marketing campaign effectiveness, staying on top of performance is what secures your future success. By identifying the tactics that had the biggest impact on your key performance indicators (KPIs)—both positive and negative—you can optimize all future campaigns to generate even greater returns.
Today we’re going back to basics and reminding ourselves of what to measure and how to do it effectively. Let’s dive in!
What is Campaign Measurement?
Campaign measurement is the process of measuring the impact of your marketing or advertising efforts against your campaign goals. It involves looking at the KPIs of your campaign and assessing whether they’re adequate for meeting your goals.
In most cases, campaign measurement is done at the end of the campaign. However, it’s also possible to measure the impact in real-time while the campaign is still active. That way, you can adjust the campaign to maximize its impact.
Metrics to Measure Campaign Effectiveness
KPIs are crucial for any campaign measurement framework, giving you a quantitative understanding of your marketing impact. The specific metrics to measure campaign effectiveness vary depending on your goals, mediums, or channels. However, the following are some key metrics to consider tracking:
Return on investment (ROI)
This metric tells you how much you earned in comparison to how much you invested or spent on the campaign. The higher the ROI, the happier your bottom line will be.
Return on ad spend (ROAS)
For advertising campaigns. This metric tells you how much you earned from ads in comparison to how much you spent on them. Low ROAS indicates a need to make improvements to your ad campaign.
This metric tells you how many people converted from your campaign. Conversion doesn’t necessarily have to be a purchase; it could also be completing a lead signup form or requesting a demo, for example.
Cost per lead (CPL)
The cost per lead metric measures how much you spent on each lead gained. This is a useful metric in B2B organizations and businesses with a longer sales cycle that often have to nurture leads before converting them.
Cost per acquisition (CPA)
Cost per acquisition tells you how much you had to spend for each new customer gained. It’s a useful KPI for campaigns where the goal is to raise brand awareness, expand your reach, and attract new customers.
You should also look at how much traffic increased because of your campaign. Look at website visits during the campaign period and compare them to traffic from an earlier period to measure campaign effectiveness.
Website visits by traffic source
Break down your website visits by traffic source. Look at how many visitors came from each of your marketing or advertising channels such as email, organic search, social media, or even referral links.
This is to measure the number of people who clicked the content in your marketing email or advertisement. Use this metric to understand how well your messaging or offer resonates with the target audience.
Cost per click
This metric shows you how much it costs each time someone clicks on your ad. Use this to understand how effective your audience targeting and CTAs are. The goal is to lower your cost per click, for example by perfecting targeting to only reach the most relevant people.
Impressions give you an idea of the number of times people saw your ad or content. This is a good metric to assess if you’re using the right channels and targeting strategies.
How to Measure Success of a Digital Marketing Campaign
To measure marketing campaign effectiveness, it’s important to start with a solid campaign measurement framework. This not only gives you a better sense of direction but also helps you extract more value from your measurement efforts. The following criteria are essential for any measurement framework:
A clear goal
Start with a clear idea of the purpose of your campaign—whether it’s to attract more leads, raise brand awareness, or grow revenue. When it comes to campaign measurement, having a specific goal in mind helps you to understand what you’re measuring for and allows you to make sense of KPIs.
Lay out the metrics most relevant to the campaign objective. For example, if the goal is to grow revenue, metrics like conversions, cost per conversion, and total sales are some of the most appropriate. Defining core metrics ahead of time prevents you from getting distracted by irrelevant KPIs.
A specific time frame
Specify a time frame for your campaign so it’s clear when to start measuring its impact. This creates a sense of urgency and allows you to focus on achieving your campaign goal within the specified time frame.
Campaign Optimization with DemandScience
After extracting valuable insights from campaign measurement, you can put those learnings into practice to develop a new campaign or optimize an active one. Leveraging a solution like DemandScience helps you create more impactful marketing campaigns that drive qualified leads and revenue.
We improve targeting by delivering targeted display ads, personalized at the contact level. We use predictive intent data to make accurate buying predictions base on your prospects’ website visits and social media behavior. This knowledge helps you to serve the most relevant content and offer for each prospect, improving their likelihood to convert.
Contact us to learn more about our solutions.