Online marketing has increased substantially, making it easy for SMBs to run digital advertising. However, if you have no prior experience with advertising, different metrics can become very confusing. But don't worry, we are here to help.
Impressions and Clicks
The basics of digital marketing concern impressions and clicks. An impression is the number of times your banner is shown to users. As the banners are often shown often, online marketing platforms are measuring the cost per 1000 impressions, known as cost-per-mile (CPM).
After your user has seen the banner, the goal is often to get them to click on your ad, leading to your website, to fill out a lead form, or give you a follow on social media. As a result, we measure the clicks of a campaign, which is the total sum of users who have clicked on one of your banners. Further, there are two key metrics, the cost-per-click (CPC) defines how much your average click costs you and the click-through rate (CTR) shows the percentage of people who have seen your campaign and clicked on the banner.
Leads
Another metric is the number of leads. Most campaigns are running with a reach or click objective, meaning that the goal is to just get many impressions or clicks. However, sometimes you might want to go further down the funnel and use a lead objective. Here the goal is to fill out a lead form on for example Facebook. These leads can be used to collect user data and later for special offers. As a result, we are measuring the number of leads and the cost-per-lead (CPL).