Measuring and Improving Key Benchmarks for your Display Ads

 

Display Ads Benchmarks 

Keeping track of key ad metrics will help evaluate your marketing campaigns’ progress, what’s working well, and what needs to change. Below are some key display metrics that will help you measure and track the success of your campaigns as well as some ways to improve them.

  • CPM
  • CPC
  • CTR

 

CPM (cost per mille)

The cost required to purchase and serve 1000 impressions. 

Tactics to improve CPM

  • Target the right audience to make sure your effectively reaching the right customers.
  • Broaden your targeting. If your target audience is too small, it can sometimes require higher CPMs to win these impressions. Expanding your audience gives you more opportunities to win impressions and could lower your overall CPM needed to win them
  • A/B test your ads.
  • Ensure all major ad sizes are being utilized. More potential impression opportunities can result in a lower CPM. Utilize all of the major ad sizes to have open up as many bid opportunities as possible

 

Click based metrics

  • CPC (cost per click)
  • CTR (Clickthrough Rate) 

 

CPC (cost per click)

CPC is the amount you pay every time a user clicks your ad. 

 

CTR (Clickthrough Rate) 

Click through rate measures how often people who view an ad end up clicking on it. It is calculated by dividing the number of impressions served by the number of clicks.

Tactics to improve CPC & CTR

  • Refine your audience so your targeting leads with relevant content. It will help increase engagement with your ads
  • A/B test different creative to identify which ads generate more clicks
  • Create a clear CTA that is persuasive and demonstrates why a customer should click on the ad
  • Include promotions or benefits in your ads, such as showcasing that you offer free shipping or a sale.
  • Utilize impactful or visually interesting graphics.
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