The expectations for conversion metrics on advertising campaigns can vary depending on several factors, including the industry, target audience, campaign objectives, and the specific advertising channels used. However, here are some typical expectations for conversion metrics that advertisers may aim for:
- Click-through Rate (CTR): This metric measures the percentage of people who click on an ad after viewing it. A good CTR can vary based on the advertising platform, but generally, a rate of 1-2% or higher is considered favorable.
- Conversion Rate: The conversion rate indicates the percentage of visitors who take the desired action after clicking on an ad, such as making a purchase, filling out a form, or subscribing to a service. The ideal conversion rate depends on the industry and campaign goals, but a range of 2-5% or higher is often considered a positive outcome.
- Cost per Acquisition (CPA): CPA measures the average cost of acquiring a customer or obtaining a conversion. Advertisers typically aim for a low CPA, as it indicates efficient use of advertising budget. The acceptable CPA can vary significantly based on industry, product price points, and profit margins.
- Return on Ad Spend (ROAS): ROAS is a metric that calculates the revenue generated for every dollar spent on advertising. Advertisers generally aim for a positive ROAS, ideally exceeding 100% to ensure profitability. The specific target ROAS can vary depending on the campaign objectives and the business model.
- Return on Investment (ROI): ROI evaluates the overall return on the advertising investment, considering both the revenue and the cost of the campaign. Advertisers typically aim for a positive ROI, where the revenue generated exceeds the advertising costs. The target ROI can differ based on business goals and industry benchmarks.
It’s important to note that these expectations can vary significantly across industries and campaigns. It’s essential to set realistic goals based on historical data, industry standards, and the specific context of the advertising campaign. Regular monitoring, testing, and optimization are crucial to improving conversion metrics and achieving desired outcomes.
Conversion metrics for out-of-home (OOH) and over-the-top (OTT)/connected TV (CTV) advertising campaigns can be a bit different from digital advertising channels. Here are some typical conversion metrics to consider for these specific mediums:
Out-of-Home (OOH) Advertising:
- Reach and Frequency: OOH campaigns often focus on reaching a large audience and creating brand awareness. Metrics such as reach (the number of unique individuals exposed to the ad) and frequency (the average number of times an individual is exposed) are commonly used to measure the campaign’s impact.
- Brand Lift: OOH campaigns may measure brand lift, which assesses changes in brand perception, awareness, or preference among the target audience before and after the campaign. This can be done through surveys, interviews, or other market research methods.
- Footfall and Traffic: For OOH ads placed near physical locations like stores or events, tracking footfall and traffic can provide insights into the effectiveness of the campaign. Data may be collected using sensors, GPS, or other tracking methods to measure the increase in foot traffic after the campaign launch.
OTT/CTV Advertising:
- Completion Rate: OTT/CTV campaigns often involve video ads, and the completion rate measures the percentage of viewers who watch the entire ad. Higher completion rates generally indicate better engagement and message retention.
- Viewability: Viewability measures the percentage of ad impressions that are viewable to the user. For OTT/CTV campaigns, ensuring high viewability is important to ensure that the ad is seen by the intended audience.
- Click-Through Rate (CTR) and Conversions: Depending on the specific OTT/CTV platform, there may be opportunities for interactive elements or clickable CTAs within the ad. Tracking the CTR and subsequent conversions (e.g., website visits, app downloads) can provide insights into the campaign’s effectiveness in driving actions.
- Audience Retention: Monitoring the audience retention throughout the ad can give insights into how engaged viewers are and at which points they may drop off. This information can be useful for optimizing ad content and messaging.
It’s worth noting that OOH and OTT/CTV campaigns often work in conjunction with other advertising channels, and the conversion metrics may be considered within the larger context of an integrated marketing strategy. It’s essential to define specific objectives and select appropriate metrics that align with the campaign goals for these mediums.