When it comes to campaigns on Google, Facebook and other platforms, it is essential to know how to measure results.

After all, questions will always come up, like:

  • Are my campaigns doing well?

  • What metrics should I look at to see if my campaigns are good or not?

Your website should have already all conversion points correctly tracked in order to use the best metrics.

First of all, we must understand whether your business is an e-commerce or not. 

If it's not an e-commerce, your campaigns will probably have the objective of generating registrations, that is, people who fill out your contact form. Then we will call your objective “Leads”. In this case, skip the E-commerce section and go straight to the Leads section.

Performance indicators for E-commerce

For e-commerce, the fundamental indicators are: 

  • ROAS (Return on ad spend – Ad Revenue / Investment)

  • Revenue (Value generated by sales)

  • Conversions (Sales)

  • Conversion Rate (Sales / Access on the website)

  • Cost (Ad investment)

In this analysis, metrics such as CPC (cost per click), Impressions, CTR (Click Through Rate), Impression Share and Average Position are out of scope at first, since the main focus is on maximizing revenue. Of course, when it comes to analyzing and optimizing your account, these secondary metrics can generate insights and justifications for increasing or decreasing performance.

It's important to know that the increase in investment does not lead to a proportional growth in revenue. In most cases, with the increase in investment, a decrease in the conversion rate and ROAS is expected, since there is a strong and negative correlation (increasing one, reducing the other almost proportionately) between investment and ROAS.

Business performance indicators with a focus on generating leads (Leads)

For this type of business, the analysis metrics change and other indicators come into play. The primary indicators are:

  • CPA (Cost per Acquisition: Registration / Investment in Ads)

  • Conversions (Signups or Leads)

  • Conversion Rate (Registration / Access on the website)

  • Cost (Ad investment)

Secondary metrics are useful to deepen account knowledge and data study, and direct your optimizations. When we have the objective of attracting Leads, much is said about ensuring that the contacts captured are qualified. Therefore, feedback from your Account Manager is essential for their constant qualification.

Pareto offers solutions for you to qualify leads and map what channels bring you the best leads. Ask us for more information, and we'll be happy to assist you!

Warning: In both cases, the analysis must be done separately by channel (Google Ads, Facebook Ads), since each platform has its attribution model. Have trouble understanding that? We have this Pareto article that explains a little better about channel assignment.
Visit: Attribution Model

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