The Matrix of Metrics: Online Marketing and Your Small Business
Often we encounter clients looking for ways to increase their bottom line and their exposure without putting a dent in their wallet. One of the most effective tools that can be used, when done correctly, is online marketing. Online marketing encompasses PPC ads, social media marketing, email marketing and all the other great things you can do on the internet to brand and market your business (and usually for a much lower cost than traditional marketing).
The key to online marketing is to use it the right way. Done correctly, it will be quick, effective and inexpensive. When it is done incorrectly it can be a serious waste of resources.
Before you start your online marketing campaigns- be it Facebook, Twitter, Adwords, etc., you need to track and analyze the metrics for all that work you are doing online. Generally these metrics are going to include measuring traffic and visitors to your blog, social networks, social media, and any ad campaigns you are running. The reason metrics are important is because they will give you that needed insight into whether or not what you are doing is working, and how you need to adjust and tweak your campaigns.
Items such as inconsistent search phrases or flawed audience can cost you money. And of course, the metrics will also tell you what you are doing correctly!
Over our next few blogs, we’ll be going over some of the ways you can measure your online marketing effectiveness.
One of the more popular ways our clients choose to market online is through Google Adwords.
Should you use pay-per-click or site targeted advertising (banner ads, rich media ads and text) then it is important that you pay attention to these 5 things:
- Click Thru Rate (CTR) – this would be the percentage of people that clicked on your ad. If you have a 10% CTR that means that for every 100 people that saw it your ad, 10 clicked on it.
- Average position – this lets you know where the placement of your ad is in search results. Generally the most success if found in positions 3 thru 5.
- Impression share – this is the number of times your ad is displayed per number of searches of a particular keyword phrase. If your impression rate is 50% that means that every time that phrase is searched your ad pops up half the time. A strong impression rate is considered 80% or higher.
- Bounce rate –this is the rate (percentage) of people that clicked on your ad, went to the landing page and left. In other words they did not follow your call to action. A bounce rate of 30 means that 3 out of every 10 people that clicked the ad, left once they got to the landing page.
- Conversion rate – this is the good one, this is the rate that visitors become customers.
- Landing page- You also need to make sure you have effective, measurable landing pages for your ads. Your visitors who you are paying to click through on your ads need to “land” on the right kind of webpage. For example, if you just take them to your homepage, they might not be seeing what it is they are looking for and they’ll be more likely to leave (increasing your bounce rates!). The most effective landing pages will speak to your visitors, address why they clicked on your ads in the first place, and encourage a conversion through a form, click through or other option. Your landing pages can make or break your Adwords campaign.
In our next blog post, we’ll be going over email marketing and website analytics. Stay tuned!