Mobile app advertising is extremely effective for many CPG brands for boosting name recognition and driving web traffic that could lead to sales. The only sure way to know whether your ad campaign is successful, and the extent of that success, however, is to measure it.
Here are some of the essential measurements for your in-app CPG ad campaigns.
Impressions show how many people saw your ad. Some mobile ads are pay-per-click, so you pay a certain amount for each time the ad appears on someone's screen, while others are a set rate per day, week, or month. Knowing how many impressions your ad gets will help you evaluate whether it provides the amount of exposure you want or need.
The conversion rate of an ad represents the number of ad viewers who decide to make a purchase, subscribe, or otherwise follow its call to action. For many ads, the bottom line is the number of sales it generates, although other goals are also possible depending on the purpose of the ad. The conversion rate is expressed as a percentage, and believe it or not, a 2-3% conversion rate is considered good for in-app ads.
Cost per conversion
Dividing the total cost of the ad by the number of conversions will tell you how much it costs for each conversion. If only a small percentage of your impressions lead to conversions, your cost per conversion could be a few dollars to over $100, and you need to evaluate whether it's worthwhile to pay that cost.
Brand lift is not as easy to measure as some other metrics, but when the main goal of the ad is to increase brand recognition, it's an important thing to measure. An ad that is providing brand lift should show an increase in Google searches and more traffic on websites and social media pages.
Return on ad spend
Did you make more money on sales than the ad cost? Most ads should not lose money unless it is purely for brand recognition. But even brand recognition should increase sales, either immediately during the time the ad runs or some time afterward.
If the app allows you to monitor the wish lists and shopping carts of those that view your ads, or if you can monitor those metrics on your own pages, you can calculate purchase intent and target those users with more tailored offers. This kind of specific targeting can be a way to use your ad dollars for campaigns that go after almost-customers, and those you know are seriously considering purchasing your product.
Measurement is important for any kind of marketing effort to determine its success. Measuring your mobile app ad campaigns is the only way to tell whether they are working as intended and generating enough response from those that are viewing them.
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