The advertising effectiveness indicators aimed at attracting visitors are as follows:
Clicks: The number of times the ad was clicked
Click-through rate: The percentage of ads clicked on compared to the number of times they were displayed
・Cost per click: Cost per click
If the goal is to croatia cell phone number list attract visitors, listing ads are often used. Listing ads are ads related to the keywords that users searched for, and are also called search-related ads.
By choosing keywords with high search rates, your ads will be displayed to a wider range of users.
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・Number of conversions: Number of results achieved through advertising
Conversion rate: The percentage of conversions per number of ad clicks
Cost per conversion: The cost per ad to achieve one conversion
If the goal is to acquire customers, listing ads and remarketing ads are often used. Remarketing ads are ads that are displayed to users who have accessed an ad once and then left. Because they target interested users, they lead to a high probability of conversion.
Commonly used metrics for measuring advertising effectiveness and how to calculate them
The following metrics are often used to measure advertising effectiveness:
Cost per acquisition (CPA)
Return on Investment (ROI)
・Return on advertising costs (RPAS)
We also introduce the calculation method for each indicator.
Cost per acquisition (CPA)
Cost per conversion is the advertising cost for one conversion, also known as CPA. CPA is an abbreviation for Cost per Acquisition.
It can be calculated using the formula "advertising cost / number of conversions".
For example, if the advertising cost is 500,000 yen and the number of products purchased is 100, the cost per conversion will be 5,000 yen.
Return on Investment (ROI)
Return on investment is the ratio of profit to the cost invested in advertising, also known as ROI. ROI is an abbreviation for Return on Investment.
The calculation formula is "(profit ÷ advertising cost) x 100".
For example, if your advertising costs are 200,000 yen and your profits are 400,000 yen, your return on investment is 200%.
Return on advertising spend (ROAS)
The return on advertising costs is the ratio of sales to advertising costs, also known as ROAS. ROAS is an abbreviation for Return on Advertising Spend.
The calculation formula is "(Sales ÷ Advertising Costs) x 100".
For example, if your advertising costs are 1 million yen and your sales are 5 million yen, your advertising cost recovery rate is 500%.