Mission: Possible – Creating + Implementing Impactful Marketing KPIs

Return on Investment for marketers has become much more complex since the introduction of iOS14. A fair amount of the consumer data needed is not as accessible now, as traffic moved from social media posts to e-commerce advertisements. The current tracking standard is a combination of Google Analytics and urchin tracking module codes that can provide ample data for marketers to successfully calculate a return on investment from their advertising.

In this article we will look at the types of data marketers should be studying to measure their content’s appeal and performance, and how to be compliant with the privacy standards that today’s market demands.

Factors to Consider When Selecting MER or ROAS:

ROAS – Return on Advertising Spend: This stands for the total revenue you acquire in the positive for every dollar spent. 

MER: Marketing Efficiency Ratio: This is the total revenue divided by total spent. 

ROAS is one of the top-ranked metrics marketers use to closely track performance. It provides a concrete answer of how much revenue they receive for each dollar they have had to spend. The revenue earned is divided by advertising costs to find ROAS. If a marketer spent $200 on advertising and saw $600 in return, their ROAS is $3. This formula does bear the restraint of only being limited to immediate returns but is still incredibly practical for very precise tracking. 

MER Marketing Efficiency Ratio is a snapshot of the company’s total revenue divided by total spend. The dollar amount is defined by the return on an ad, so the marketing team can see how many customers purchased products after clicking on the ad. The ROAS Means of calculation cannot consider consumers who saw the ad but may have learned more about the product somewhere else before ultimately deciding to purchase. This MER ratio is a bit more of a “larger picture” and can be used to estimate performance across numerous instances as opposed to ROAS’s instantaneous characteristics.

UTM Codes: An ROI Compass for Data Geography: 

ROAS and MER can’t live up to their full potential unless you have viable stats for gleaned revenue on hand. Over the past few years, marketers have found many creative methods to nail down accurate conversions and traffic results. UTM codes give add links a unique form of identifier, which acts as a beacon for your website’s Google Analytics to see where traffic is coming from. Here are some of the useful parameters UTM codes offer that can develop into valuable strategy planning tidbits for your marketing team.

UTM ID: This is a unique campaign ID that attributes specific actions and conversions back to respective users.

UTM Source: These are used to indicate the very specific origins of web traffic. Sources such as your newsletter, Facebook, Twitter, or Instagram allow you to make important data-driven decisions. 

UTM Medium: The UTM medium refers to a specific marketing channel. Designations such as “Cost Per Click” are used for paid advertising campaigns, or “Organic” and “Referrals” for respective origins. 

UTM Campaign: These campaign UTM parameters indicate the specific campaign, sale, or promotion your link represents. It’s a great tool for separating performance individually and determining where your best results are. 

UTM Source Platform: This is the specific term for the platform responsible for the defined direction of traffic to a given analytics property. One example would be a buying platform that actively sets budgets and targeting criteria to a related platform set in place to manage traffic data of organic origin. 

UTM Content: This allows you to track which piece of content was the “active leader” with a click to your URL. It is excellent for situations when you are testing pieces of content that run during a campaign and need to finalize which are obtaining the best results. 

Facebook’s Dashboard Reveals Reliable Insights:

Even with the introduction of new social platforms that have risen in popularity, Facebook has some unique advantages regarding KPIs. Here you can use useful parameters such as campaign source, campaign medium, Ad ID, and Campaign ID. The algorithm that Facebook functions on offers very helpful insights and relies on the important data from ad URLs to offer improvements to ad performance. The data you learn about traffic conversions can be used to put together a very complete and thorough picture through MER. 

Adjusting your ad spend can have you using up very valuable time that can best be allocated for customer service, future business plans, and all-important quality control. Our accomplished team here at FarFetched Studios has a well-honed instinct and approach for KPI data. This is an area that allows you to shape and surpass your business goals, and our results attain meaningful and measurable outcomes!