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Quick Guide to Advertising Metrics

Quick Guide to Advertising Metrics


Cost Per Click (CPC)

Cost per click is how much you pay for someone to click your ad. An average of $2 per click is a good goal. Often it is less because we are talking average here.

Cost per mille (CPM)

CPM is your cost per 1,000 impressions. If your CPM is $20, it means that it costs $20.00 for 1,000 people to see it.
CPM should be around $20 – 30$. If your CPM is higher than that, it means you have a competitive audience. Are you still getting calls? If so, it is fine to leave it.

Click-Through Rate (CTR)

CTR is the percentage of people that click your ad. These are the people clicking read more on your ads.
It’s the number of clicks divided by the number of impressions, then multiplied by 100 to get the percentage. CTR = (Clicks / Impressions) X 100%

A good benchmark for CTR is 2-3% for a warm audience (people who know who you are) and 1% for a cold audience (people who have never heard of you).

This is telling us if enough people are clicking on your ad. A CTR of less than 1% says your copy and headline need some work because it is not appealing to your audience.

Cost Per Lead (CPL)

CPL is the cost to generate a lead. A lead is usually someone who gives their information by filling out a form or signing up for a webinar. You can expect to see different amounts based on the type of ad you are running. For a free guide, you can expect to pay $2 -$4. A webinar funnel in the $3-$10 range although you can expect to be in the $8-$10 range and sometimes around $12. This is very dependent on your niche. Again, are you getting sales? If so, leave it.

Conversion Rate

Conversion rate is calculated by dividing the CPC by your landing page views. 40% - 50% is the average to expect with a 20% minimum.

If it is off, it can mean your landing page is loading slowly or your ad and your landing page aren’t matching up. Your landing page is too different from your ad.

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