With so many social media metrics out there to be tracking, it can be hard for your business to know where to start.
Unfortunately, many new businesses fall prey to the vanity metrics (i.e.: follower count, number of likes, and page views) to measure the success of their marketing efforts.
What these metrics are really doing is creating the illusion of a successful social media presence.
Here’s our very own confessions of a social media advertising company: 9 metrics that should actually matter to your business:
1. Click-Through Rate
This powerful metric is calculated by dividing the number of clicks that your business receives on an ad by the total number of impressions.
Your goal should be to earn a high click-through rate for all terms relevant to your business.
The metric is important because it not only helps to drive traffic to your website, but also helps to determine the quality of your social media pages.
This metric will tell you the average number of times that your ad was served to each person and is calculated by dividing the total number of impressions by the total reach.
You’ll want to pay attention to this metric for two reasons.
First of all, if your ad is showing up too frequently, “banner blindness” can kick in, which means that your audience will subconsciously block out your advertisement.
Second, you run the risk of pissing off your audience by bombarding them with your ads.
Third, a high frequency will result in higher advertising costs.
Keep this metric under control if you want to maintain brand advocates.
You’ll want to familiarize yourself with this metric as it will show the average cost that your business is paying for a click on your ad (total cost of clicks divided by total number of clicks).
You’ll want to keep an eye on his metric so that you don’t blow your social media advertising budget.
Ideally, your cost-per-click should come down over time as your click-through rate and relevancy improve.
4. Cost-Per Conversion
Cost per conversion is simple: Divide your total cost for generating traffic and divide by the number of conversions.
For example, suppose your ad campaign cost $200 for 200 views and at the end of the campaign, it yielded five conversions.
In that case, the formula is CPC = $200/5 which results $40 per conversion.
This is one of the most important metric, if not the most important, because it reveals you how much it cost you to get your desired action.
5. Relevance Score
In social media advertising, your relevance score refers to how relevant your ad is to your target audience.
The score ranges from 1 to 10, with 10 being a highly relevant ad.
Your social media advertising company will constantly be working to improve your relevance score.
The lower your relevance score, the lower your advertising cost.
6. Cost-Per-Thousand-Impression (CPM)
This important metric refers to the cost for every thousand potential customers that see your social media advertisement.
You can calculate this metric by dividing the advertising cost by the total number of impressions (in thousands).
Overall, you’ll want to use this metric to help assess the ROI of your social media marketing strategy.
Any social media advertising company will tell you that you need to pay close attention to the metrics regarding your target demographic to make sure that you are most effectively reaching your audience.
Of these demographic-related metrics, one to focus on is age.
This is because social media users in different age brackets don’t always interact the same way online.
Check this metric constantly to decide which age group responds the best for the lowest cost.
Gender is another critical demographic-related metric that your business should be reviewing regularly, especially if your goal is to primarily target one sex with your advertisement.
9. Bounce Rate
The bounce rate is calculated by dividing the total number of single page visits by the total number of entries to the webpage.
This metric matters because it measures the quality of the user experience that a visitor has on your website.
If you have a high bounce rate, the traffic that your social media advertisement is generating is not very relevant or your landing page is not very effective.
Partnering with a reputable social media advertising company can help you to stay on top of all of these critical metrics to help ensure that you are successfully growing your online presence.
Contact us to learn more about our social media advertising services.