Metrics That Matter The Most in 2020 (& Definitions!)

July 7, 2020

Research of the Week filters through hundreds of research studies and finds the most interesting and thought-provoking research for marketing professionals. Then we provide practical strategies and tips on how to apply the research to influence your marketing programs. Enjoy!

This week’s research looks at the most effective tactics for a programmatic advertising program.

The research study, The State of Programmatic Advertising, was a joint venture with Ascend2, a leading research company. The study was fielded in May 2020 and represents the opinions of 213 marketing professionals from businesses with up to 500 employees. Measuring the impact of advertising campaigns is critical to optimizing a programmatic strategy. Return on Investing (ROI) and Return of Ad Spend (ROAS) is the most meaningful metrics for tracking success according to 58% and 36% of those marketers working with businesses with up to 500 employees.

QUICK TIP from the research: What is the difference between ROI and ROAS? ROAS is a subset of ROI and tells you if an ad campaign is working. ROI tells you if your entire program or department is profitable. Here is a video that provides more detail on the differences between ROI and ROAS.

Definitions of 7 Key Programmatic Metrics

Click-Through Conversion (CTC)

CTC is when a visitor is shown your ad, they click on it, and then convert. The calculation as a percentage is (number of clicks that have converted/total number of clicks your ad received).

Click-Through Rate (CTR)

CTR is a metric that measures the number of clicks your ad(s) receive per number of impressions. The calculation is (clicks/impressions).

Cost Per Click (CPC)

CPC is calculated by taking the total money spent divided by the number of clicks received for a campaign.

Cost-Per-Thousand Impressions (CPM)

Also called cost per mille, is the price of 1,000 advertising impressions on one webpage. The calculation is (cost to the advertiser/number of impressions) x 1000.

Return on Investment (ROI)

ROI is a ratio between net profit and cost. ROI is used to evaluate the overall effectiveness of your advertising program. The calculation is (net profit/cost)

Return of Ad Spend (ROAS)

ROAS is a measurement of how many dollars you will receive for every dollar you spend on an advertising campaign. ROAS will tell you if an ad is working or not. The calculation is (revenue/cost)

View-Through Conversion (VTC)

VTC is when a visitor is shown your ad, they do not click on it, but later return to your site and convert. The calculation as a percentage is (number of VTC/total number of impressions).

SharpSpring Ads is set-up to help you collect the data and metrics to make better decisions. If you want to discuss the key metrics for your program, the SharpSpring Ads team is available to meet with you. Click here to schedule a meeting.

Kathleen Davis

Kathleen Davis

Marketing Manager - SharpSpring Ads: Kathleen is an enthusiastic marketer experienced in marketing automation, campaign management, and digital analytics. She's previously worked on direct mail campaigns, spear-headed lead generation efforts, and managed the marketing intern program at SharpSpring.
Post categories: Articles
Post tagged with: digital advertising, event conversion, remarketing, Research of The Week

Web Retargeting

Retarget lost customers across all major display exchanges with ease.

Facebook Retargeting

The easiest way to retarget lost customers across Facebook.

Shopify Retargeting

Set up dynamic retargeting for your Shopify store in minutes.

Dynamic Retargeting

Get more sales for your online store. Bring browsers back with a product-specific ad.

Cross-Device Retargeting

Retarget lost web site visitors across mobile phones and tablet devices.

Mobile Retargeting

Discover the effortless way to re-engage lost mobile users across smartphones and tablets.

Twitter Retargeting

Harnessing the power of Twitter ads with your existing audiences.

Connect

Team up with marketers to retarget each other’s visitors and acquire new customers.

What is Retargeting?

Retargeting keeps them coming back for more.

Product Tour

Take a product tour of SharpSpring Ads, the easy retargeting platform for advertisers.

Pricing

Set your own campaign budgets and spend as much or as little as you like!

Getting Started

Design precise, effective campaigns in minutes.

Get a Demo

Learn how to optimize and scale programs with a cross-channel, multi-device approach.

Success Stories

Helping our customers run a better business every day, our success is directly linked to our customers’ success.

Success Stories

American Apparel

Clothing retailer increases ROI by 400% with Facebook retargeting. Read Success Story ›

99designs

Design platform gets a 134% boost in incremental revenue. Read Success Story ›

InstaEDU

Online educator sees a 20% drop in facebook retargeting CPA. Read Success Story ›