How can you measure the impact of your display ads?
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Display ads are a common form of online advertising that can help you reach your target audience, build brand awareness, and drive traffic to your website. But how do you know if your display ads are effective and worth the investment? In this article, you will learn how to measure the impact of your display ads using different metrics, tools, and methods.
One of the most basic ways to measure the impact of your display ads is to track how many times they are shown (impressions) and how many times they are clicked (clicks). These metrics can tell you how much exposure and interest your ads generate, as well as how well they match your audience's preferences and needs. You can use online advertising platforms, such as Google Ads, Facebook Ads, or LinkedIn Ads, to monitor and report these metrics for your campaigns.
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Naseer Jatt
CEO & Founder | RiNa Multimedia and Tenstar Resume Limited | Innovating Multimedia and Personal Branding for the Modern Age
We hould track the click-through rate to see how compelling your ad is, and the conversion rate to understand if it's convincing enough to inspire action. Assessing the cost per conversion is also crucial it tells us how much we're spending to gain each customer. Don't overlook view-through conversions; these capture the delayed responses to our ads. The return on ad spend will indicate the financial return of our ads, and brand lift metrics can show the shift in consumer awareness and sentiment. Lastly, tracking how users engage with our ads through likes, shares, and comments can provide insights into their broader impact.
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Patrick Hodgson
Experienced Senior Marketing Leader | MBA,PMP|
To measure the impact of your display ads, you should focus on both quantitative and qualitative metrics. Quantitatively, track click-through rates (CTR) to gauge user engagement, conversion rates to assess action taken, and return on ad spend (ROAS) for financial effectiveness. Qualitative measures include ad recall and brand lift, which can be assessed through surveys or A/B testing. Additionally, use analytics to monitor changes in website traffic and user behavior pre-and post-campaign. By combining these data points, you get a comprehensive view of your ad's performance, guiding strategic adjustments to maximize impact.
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Saikat Chakraborty
Head of Marketing at CIEL HR
It doesn’t matter how good your product/service is or how good the ad is if we are not reaching the right audience at the right time. Even if we are reaching the right audience multiple impressions help in generating a click. The next step of that click resulting in a Marketing Qualified Lead (MQL) is how much value we are offering in the landing page they come to from the click. The greater the value, greater chance of conversion. We should not rush into selling, rather follow the process.
Another way to measure the impact of your display ads is to track how many of the people who click on them actually take a desired action on your website, such as signing up for a newsletter, downloading a resource, or making a purchase. These actions are called conversions, and they indicate how effective your ads are at driving business results. You can also measure how much revenue your ads generate by assigning a value to each conversion. To track conversions and revenue, you need to set up conversion tracking on your website and link it to your online advertising platform.
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Jo Van Loock
Sales Marketing Coach ♦ Trainer ♦ Speaker - provides insights in how you create marketing that WORKS 🎯, generates SALES 💸 and creates recurring customers in order to maximize your potential in the market 🚀
The second stop is conversions and revenue where you keep track of your: - CPCo (Cost Per Conversion) - ROAS (Return On Ad Spend) - CAC (Customer Acquisition Cost) - depending on what kind of ad you run. This can also be linked to for example the ACV (Average Card Value) the ad produces and even the ad position depending on what platform you run them.
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Anat Yaniv
Founder, TAG Marketing | B2C marketing expert | Focused on growth and US market entry
Conversions are a great tangible way to see if your ads are working. With that, It’s important to remember that after the iOS 14 release, apps and sites are required to ask users if they want to be tracked. So know that you can’t track all the people that clicked on the ads. Those people who chose to not be tracked, their actions will show up as direct or organic. Therefore, it is important to look at both in platform sales and overall sales to assess if your ads are working. Generally, there will be a correlation between in platform conversations and direct/organic conversation. So always look at both results when measuring conversations.
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Ramachandra Barik
Helping SaaS businesses with performance marketing! Google,Meta & LinkedIn Ads
I think it depends on the objective of the campaign. If it is for remarketing conversion and the website traffic. If it is for brand awareness obviously reach and frequency. While using it for conversion campaigns- it is suggestible to build a custom landing page with more friction in the lead form to filter out junk leads. We have tested it for saas brands , have gotten good results at much lower cost compared to search campaigns.
A third way to measure the impact of your display ads is to compare how much you spend on them (cost) and how much you earn from them (revenue). This can help you evaluate how profitable your ads are and how well they fit your budget and goals. You can calculate the return on investment (ROI) of your ads by dividing the revenue by the cost and multiplying by 100. A positive ROI means that your ads are generating more revenue than they cost, while a negative ROI means that your ads are losing money. You can use online advertising platforms or spreadsheet software to calculate and analyze your cost and ROI.
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Sandra Bergman
Optimizing customer loyalty programs for cannabis retailers.
ROAS (Return On Ad Spend) is the typical marketing metric used to measure the cost effectiveness of digital advertising. It's different from ROI which takes into account other overhead costs and gives you a clearer view of profit. However ROAS does not take into account any other expenses besides the ad cost. ROAS is calculated by dividing your ad spend by the revenue generated from the campaign. It tells you how much revenue you received from each dollar spent on a campaign. It can be expressed as a ratio, percentage or dollar value. For example, if you made $5 for each $1 spent. The ROAS would be 5:1 = 500% = $5. Companies with higher profit margins can accept a lower ROAS, whereas those with smaller margins would need a higher ROAS.
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Vatsalya Bhatnagar
Media Buying and Planning | Brand Strategy | Brand Marketing Enthusiast | SEO and Ads Expert | Angel Investor
After working over qualitative and quantitive matrices, the final measurement to track the efficiency of any Ad Campaign is by checking whether the campaign is business-friendly or commercially viable. this can be achieved by tracking Investment and Revenue, keeping them in factors like ROI and RoAS, Although RoAS is not the correct measurement here because it only includes the Ad spent, while ROI is a combination of multiple factors like Ad Spends, Operational Costs, Logistics (If applicable), along with Gross and Net Margins (If exists).
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Junaid Ashraf Qureshi
Talent Acquisition | Digital Marketer | Social Media Manager🔑 I team up with businesses and we overcome their current challenges together ✨
Measuring the effectiveness of your display ads also involves assessing the cost and revenue aspects. To gauge the profitability and alignment with your budget and objectives, compare the expenses (cost) with the earnings (revenue) generated by your ads. Calculating the return on investment (ROI) is a valuable metric, computed by dividing revenue by cost and then multiplying by 100. A positive ROI signifies that your ads are generating more revenue than they cost, while a negative ROI indicates a loss. Utilize online advertising platforms or spreadsheet tools to efficiently compute and analyze your cost and ROI, helping you make data-driven decisions for your advertising campaigns.
A fourth way to measure the impact of your display ads is to track how many unique people see them (reach) and how often they see them (frequency). These metrics can help you understand how well you are covering your target market and how much exposure your ads need to create awareness and recall. You can use online advertising platforms or analytics tools, such as Google Analytics, to measure and optimize your reach and frequency.
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Junaid Ashraf Qureshi
Talent Acquisition | Digital Marketer | Social Media Manager🔑 I team up with businesses and we overcome their current challenges together ✨
Evaluating the effectiveness of your display ads extends to monitoring reach and frequency. Reach quantifies the number of distinct individuals exposed to your ads, while frequency measures how often these viewers encounter them. These metrics offer valuable insights into your coverage of the target audience and the level of exposure required for building awareness and recall. Leveraging online advertising platforms or analytical tools like Google Analytics enables precise measurement and optimization of your reach and frequency, aiding in strategic decision-making for your ad campaigns.
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Gaurav Vashisht
Founder & CEO at Gsquare Web Technologies Pvt Ltd (Hiring at all Levels)
Reach and frequency are key metrics in advertising. Reach measures the total number of unique individuals exposed to an ad campaign within a given period. It quantifies the potential audience size and brand visibility. Frequency, on the other hand, indicates how often the target audience is exposed to the same ad during that period. Balancing reach and frequency is essential to optimize campaign impact. A high reach with low frequency may attract new viewers, while a high frequency with a limited reach reinforces brand recall. The right combination depends on campaign objectives, ensuring a balance between exposure and repetition to maximize effectiveness.
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Gargi Modi
Inbound Marketing | Performance Marketing | Marketing Project Management
These metrics measure how many unique users have seen your ad (reach) and how often they've seen it (frequency). High frequency and low reach could suggest ad fatigue.
A fifth way to measure the impact of your display ads is to track how much your audience engages with them and how well they perform in terms of quality. Engagement metrics can include views, time spent, interactions, shares, comments, and likes. Quality metrics can include click-through rate (CTR), conversion rate (CVR), quality score, and relevance score. These metrics can help you assess how attractive, relevant, and useful your ads are for your audience and how they affect your ad ranking and delivery. You can use online advertising platforms or analytics tools to measure and improve your engagement and quality.
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Junaid Ashraf Qureshi
Talent Acquisition | Digital Marketer | Social Media Manager🔑 I team up with businesses and we overcome their current challenges together ✨
Assessing the impact of your display ads involves monitoring both audience engagement and ad quality. Engagement metrics encompass various indicators such as views, time spent, interactions, shares, comments, and likes. Quality metrics, on the other hand, include essential measurements like click-through rate (CTR), conversion rate (CVR), quality score, and relevance score. These metrics offer insights into the appeal, relevance, and utility of your ads to your audience, as well as their impact on ad ranking and delivery. Leveraging online advertising platforms or analytics tools facilitates the measurement and enhancement of both engagement and quality, enabling you to refine your ad strategies effectively.
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Ambika Maggu
Performance Marketing | Programmatic Marketing | Account Based Marketing | Digital Campaign Management
Evaluating the effectiveness of display ads is multifaceted, with CTR and CVR being pivotal for many digital marketers. However, relying solely on these metrics can be misleading. In B2B marketing and beyond, ads often reach unintended audiences, impacting budgets and performance. Engagement metrics, therefore, hold exceptional importance. By scrutinizing factors like time spent on your website, bounce rate, and pages per session for users from display ads, you gain insights into traffic quality. These metrics unveil how effectively your ads engage users and shape their online journey, enabling you to refine ad campaigns for superior outcomes.
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Najva Habibi
Senior Campaign Manager | Performance Marketer | Digital Marketing Specialist
A company that sells outdoor apparel wants to measure the impact of its display ads. The company has been running display ads for the past month & has tracked the following metrics: Views: 100,000 Interactions: 10,000 CTR: 2% CVR: 0.5% QS: 8 Relevance score: 7 Based on these metrics, the company can conclude that its display ads are performing well in terms of engagement & quality. The ads are getting a lot of views and they are also generating a lot of interactions. The CTR and CVR are also good, and the quality score and relevance score are high. The company can use these metrics to improve its display ads in the future. By tracking engagement and quality metrics, companies can make sure that their display ads are effective.
A sixth way to measure the impact of your display ads is to track how they influence the customer journey and the overall marketing performance. Attribution models can help you assign credit to your display ads for the conversions and revenue they contribute to, either directly or indirectly, along with other marketing channels and touchpoints. Lift studies can help you measure the incremental impact of your display ads on key metrics, such as awareness, consideration, and sales, by comparing the outcomes of a group of people who saw your ads and a group of people who did not. You can use online advertising platforms or analytics tools to conduct attribution and lift analysis for your display ads.
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Junaid Ashraf Qureshi
Talent Acquisition | Digital Marketer | Social Media Manager🔑 I team up with businesses and we overcome their current challenges together ✨
Measuring the impact of your display ads extends to understanding their influence on the customer journey and overall marketing performance. Attribution models aid in crediting display ads for their role in driving conversions and revenue, both directly and indirectly, in conjunction with other marketing channels and touchpoints. Additionally, lift studies allow you to quantify the incremental effect of your display ads on vital metrics like awareness, consideration, and sales. This is achieved by comparing results between those exposed to your ads and those who were not. Employ online advertising platforms and analytics tools to conduct attribution and lift analyses, enabling you to make informed decisions about your display ad strategies.
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Ajibola Olayiwola, MCIM MIDM arpa
I build brands for a living | Big on #sales #marketing #bigdata #ecommerce #digital #techinnovation
I see attribution as solving a complex puzzle to understand the role of each piece. Lift, on the other hand, is the extra boost your ad gives to lift the puzzle to new heights. Together, they reveal the bigger picture of your advertising strategy. I will advice taking these steps: 1. Understand how different touchpoints contribute to conversions using attribution models. 2. Measure the impact of your display ads by comparing results with and without them.
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Gaurav Vashisht
Founder & CEO at Gsquare Web Technologies Pvt Ltd (Hiring at all Levels)
Attribution and lift are critical concepts in marketing analytics. Attribution refers to the process of assigning credit to various marketing touchpoints or channels for driving conversions or other desired actions. It helps businesses understand which marketing efforts are most effective in influencing customer behavior. Lift, on the other hand, measures the impact of a marketing campaign by comparing the behavior of those exposed to the campaign with a control group that was not exposed. It quantifies the incremental effect of the campaign and provides insights into its true effectiveness. Both attribution and lift analysis are valuable for optimizing marketing strategies and resource allocation.
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Fuad Alizada
Digital Marketing Expert at Rabitabank | Instructor at Code Academy | CDMP | MBA
To measure the impact of your display ads: 1. Monitor Click-Through Rate (CTR), Conversion Rate, and Impressions. 2. Track View-Through Conversions, Cost Per Click (CPC), and Cost Per Conversion (CPA). 3. Evaluate Return on Investment (ROI) and Ad Position. 4. Analyze Ad Creative Performance and Quality Score. 5. Assess Bounce Rate, Engagement Metrics, and Ad Placement Data. 6. Consider Attribution Models, A/B Testing, and Audience Insights. 7. Use tools to detect and prevent click fraud. These metrics help you gauge the effectiveness of your display ad campaigns and make data-driven optimizations.
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Christos Shiatis
Digital Marketing / Paid Search (PPC) for the Forex industry
“Where Ads Showed” is a great way to check if your targeting resonates with your target audience when running Display Campaigns. Many times you might get high CTR% and good CPC but your Conversion Rate % might not be at the expected levels. This is because your ads are running on poor quality websites, games or placements that can cause an accidental click. Drilling down into where your ads appeared could be a great way to evaluate the performance of your Display Campaigns and can be also used during optimisation.
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Dana N.
Marketing Executive Director | Brand Strategy Development | ROI Optimization | Team Development and Motivation | Customer Acquisition and Retention Expert | Driving Results, Growing Brands, and Inspiring Teams to Succeed
The first step to understanding any impact in display ads (or digital marketing efforts as a whole), you need to ensure you know what your goals and objectives are. From there you'll be able to prioritize which data sets and determine the impact of the display ads. Let's say your goal is to grow brand awareness, Impressions and Reach are going to be important metrics to follow. If you're not reaching people, and growing that number, your brand awareness is likely static. From there, you'd want to see your impressions grow so you know that your ads are being seen to the potential reach of the ad. As you can see, ads can be a sort of cascading or domino effect, depending on what your original objective is.