What is social advertising analysis?
Social advertising analysis is the process of analysing different performance metrics collated from an ad campaign. These metrics determine how well your ads performed and what demographics are most interested in your ads, helping you to solidify who your target audience is. The better you know your audience, the better future results will be!
So why is it important? To put it simply, by analysing the performance of your ads you can identify what works and what does not. With this information your business can save money by removing under performing ads. This also gives you the potential to create more effective ads which are more in line with your target audience.
Regardless of the platform you are advertising on or the product/service you are advertising, there are key metrics that will always be important to keep track of. We like to use WordStream to compare our results to the yearly industry averages.
ROAS (Return on Ad Spend)
Return on ad spend is a metric you can use to measure the total revenue generated based on the amount you spent on advertising. It can be used to help determine how successful your ad campaign was. It can also indicate what ROI (return on investment) you could expect if you were to spend a larger budget on advertising.
A lower ROAS could imply that you are either targeting the wrong audience or that your ad copy isn’t effective enough.
CTR (Click Through Rate)
Click through rate is the percentage of clicks your ads received based on the total amount of impressions. It is important as it helps you understand what does and does not work when trying to reach your audience.
For example, a low CTR could suggest that you are targeting the wrong audience or potentially not being persuasive enough in your ad copy or call to action. It is worth testing these elements to see what works best. Often a direct call to action works best such as “Sign up” or “Shop Now”. Similarly, sometimes users will click through to browse but they are not opting to purchase there and then.
There are a few ways to improve your CTR, however the two easiest methods for social media platforms are to vary your hashtags and imagery. Hashtags work across multiple platforms and will increase your chances of being seen by your target audience. Likewise, images are a great way to improve CTR since images can easily grab someone’s attention.
CPC (Cost Per Click)
Cost-per-click is a metric that determines how much you pay for every click on an ad. CPC is essential for helping you understand what you’re spending to earn clicks on your ads and is an effective way of determining how effective your campaign is.
For pay-per-click (PPC), you only pay when a user clicks through to your website, therefore maximising your ROI. You can choose how much or little you want to spend on a PPC campaign. You can also target specific audiences based on demographics like age, location or device.
CVR (Conversion Rate)
Conversion rate measures the number of users who converted to a sale. This is calculated as a percentage of the total number of users that visited your site. Conversions are users who perform a specific action based on your call to action. e.g. if your call to action was to get people to sign up for your mailing list, the conversion would be the action of a user signing up with their email.
Conversion rate helps you to identify how effective your content is and which call to actions are more favourable to your audience.
Want to learn more about social advertising analysis?
We provide a range of tailored digital marketing services including product validation, A/B testing, social advertising and launch management. If you are interested in learning more about advertising then feel free to get in touch!