Brand teams and advertisers use data management platforms (DMPs) to collect audience data, create customer segments, and target those segments with tailored advertising messages and offers. By combining DMP audience data with real-time performance data, marketers can increase the efficacy of their campaigns and ad spend. The following seven KPIs help marketers measure the health of their audience targeting, campaigns, and spend.
ROAS – Return on ad spend (ROAS) is used to determine the effectiveness your advertising spend. Essentially, it measures how many dollars you generate in revenue for every advertising dollar you spend. It’s defined by revenue generated by a specific marketing channel divided by the media investment on that channel. This is an important KPI because it’s a quick and easy way to track the health of your investments.
Reach – Reach determines the number of people who are exposed to your advertising message. This KPI provides audience marketers with an understanding of the potential size of their audience pool.
Frequency – This is the number of unique times someone is exposed to your message. Frequency is an important metric in determining the right mix from a conversion and cost efficiency standpoint. If frequency is too high, your audience segment could be receiving unnecessary, redundant messages, which could negatively impact your conversion rate. If frequency is too low, your audience might not have enough exposure to incentivize conversion. Tying frequency metrics to performance metrics can help marketers determine the right balance.
CPA – Cost per acquisition (CPA) measures the aggregated media costs to acquire a new customer. Although similar to ROAS in nature, the CPA KPI determines the cost side of the equation, as it captures the complete costs associated for a user to complete the desired action.
vCPM – vCPM measures the cost per 1,000 viewable impressions. Unlike CPM, vCPM measures how many times an ad is actually viewed by a user vs. the number of times it’s served to the user. This metric helps marketers determine the actual price they are paying for their messages to be seen by their audience.
Viewability Rate – This measures the percentage of ads that are seen by a user. This KPI is useful in optimizing towards viewable impressions, as viewable impressions directly impact ROAS and can help increase the efficacy of your ad spend.
Conversion Rate – Conversion rate measures the number of conversions divided by the total number of visitors. Conversion can refer to any desired action you’d like the user to take. For example, it could refer to downloading a whitepaper, subscribing to a newsletter, or making a purchase.
To gain the most value from DMPs, marketers are using marketing intelligence and analytics platforms such as Datorama, a Salesforce company, to combine their audience, advertising spend, campaign, and sales performance data. With this level of connectedness, marketers can tie all of their marketing efforts and conversion metrics together across dashboards, insights, reports, goals, and alerts – all with real-time data. This ensures they’re making the most of their advertising spend. To learn more, check out our latest blog, Top 3 Dashboards for DMP Audience Marketers or schedule a demo at datorama.com.
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