4 Ways to Measure Advertising Effectiveness, Marketers Must Know!

The world of marketing is always evolving with trends that keep changing all the time. Years ago, we only knew the term marketing which refers to conventional marketing activities. However, now a new term appears, namely digital marketing which refers to marketing activities using technology, or carried out digitally.

The evolution of marketing is accompanied by intense competition between brands in winning the hearts of the audience. Of course, all of them want to be the favorite brand or even be top of mind community, but to reach that stage is not easy. Every brand needs to make a series of marketing efforts, one of them with advertising.

It doesn't stop there, it's important to know whether the ads created are able to reach the target, or in other words are successful and effective.

How to Measure Advertising Effectiveness

Here are four ways to find out if advertisement Are you effective or not:

Evaluation Key Performance Indicator (KPIs)

Before executing an ad, it would be nice to set Key Performance Indicator (KPI) or quantitative measure to be achieved from an advertisement. That way, we have clear and measurable goals.

From the KPI that has been determined, we can analyze the achievement of the ads that have been installed. Does the achievement meet all KPIs? If not, estimate where the error or deficiency lies. If it is in accordance with the KPI, then the advertisement can be said to be effective. 

Measuring Cost per Segment

By leveraging the features of Google Analytics, we can generate statistics to calculate conversions per user in each segment. So, we can find out the estimated average cost of each conversion made. So, what needs to be considered is not only the statistics on the number of visits.

Impact Analysis

After creating and placing an ad, we will receive feedback both positive and negative. Both are equally important to measure the effectiveness of advertising.

Positive impact can be in the form of impressions and conversions to high purchases. Furthermore, an effective advertisement can make a long term positive impact on a brand, for example brand awareness high, viral ads, and others. Meanwhile, the negative impact can be in the form of a high number of users who hide and choose to close ads. It can also be a tweet on social media with tone negative about advertising.

Whatever the impact, as an advertiser, you should make this an evaluation material for future advertisements. Learning from mistakes, we will be able to understand the audience better.

Result Rate Analysis

True to its name, result rate is a measurement of the final result of an advertisement. This measurement includes several metrics, such as Click-through rate (CTR), Cost per Click (CPC), Cost per Acquisition (CPA) and Cost per lead (CPL).

Those are some easy ways to measure ad effectiveness that you can try. Of course, the ability to read statistical data is an important thing for a person to master marketer. Good luck!

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