Digital Interactive Services

Impactful evaluation of performance marketing campaigns

The evolution of performance marketing is from traditional advertising to data-driven strategies, tracking measurable results and optimizing campaigns for targeted and efficient customer acquisition and engagement.

Podcast Audio Transcript

Mimi: Hello listeners, this is Mimi; thank you for tuning in to yet another exciting and informative podcast from us at Infosys BPM. Today, we are discussing about the Impactful evaluation of performance marketing campaigns. And to talk about this, we have here with us, Sreepriya Swaminathan, Sr. Domain Principal – Digital Interactive Services. Welcome Priya. How are you?

Priya: I’m doing great, Mimi. Nice to be part of this podcast.

Mimi: Performance marketing is an important element in the marketing strategy of many organizations. It comes with several advantages as we understand. Priya, could you give us more clarity on this concept?

Priya: Of course, Mimi! Performance marketing is a type of digital marketing that focuses on “results”. It is when a brand says that they’ll pay the digital marketing service provider only when their business objective is met, or a specific predefined goal or action is undertaken. In performance marketing, we only track the metrices that have direct impact on the ROI. There are several performance-related metrics that can be monitored and tracked using digital analytics to help marketers interpret a campaign's performance and make appropriate changes to deliver maximum impact.

First let me give you the 5 base metrices that marketers use to assess a digital marketing campaign. These metrics include:

• Impressions
• Clicks
• Clickthrough rate (CTR)
• Cost
• Conversions

1. Cost per click
2. Cost per impression
3. Cost per sales
4. Cost per lead
5. Cost per acquisition

• First of all, an impression is a basic metric that tracks how often an ad has been viewed by a user on a website or app. It is measured with a metric called cost per mille (or CPM) which indicates the price of one thousand ad impressions. Clicks measure the number of times users clicked on a particular ad and followed the call to action (CTA) link. It is measured with a metric called cost per click (CPC) which indicates the actual cost the advertiser has paid for each click.
• Click-through rate (CTR) adds more meaning to impressions and clicks and is calculated as the total number of clicks divided by the number of impressions.
• Cost, as you can imagine, measures the ad spend.
• Conversions take things beyond clicks and CTR, and track the specific actions taken by users who have read the ad and clicked on the call to action. For instance, when you click an ad and download a whitepaper, it’s tracked as a conversion. Finally, Cost per conversion helps marketers evaluate which campaigns are providing the best ROI on their marketing budget, and we have 3 types of cost per conversion metrics for performance marketers:
  • Cost per sale is when the advertiser pays for a sale driven by an ad.
  • Cost per lead is when the advertiser pays for a lead, website visit, or form signup.
  • Cost per acquisition is when the advertiser pays when the target audience completes a specific predefined action. This can be a click on the ad, sharing the ad in social media, or interacting with a video.