With engagement costs increasing across ad channels, it’s time to reconsider conventional KPIs and aim for a more nuanced understanding of your campaigns. Here are 5 KPIs to replace:
- Replace Spend with Profit. In most cases, spend shouldn’t be your driving consideration. Aim for efficiency goals without specifying spend per channel—or risk spending too much on one channel and not enough on another.
- Replace Platform-provided CPA with CRM-based CPA. If you rely on CPAs from platforms like Google Ads, Facebook, and LinkedIn without taking quality into account, you’re likely to overspend on the wrong leads.
- Replace Click-based CPA with Incrementality-based CPA. True CPA implements the halo effect, brand lift testing, geo lift testing, and more to help you understand the real impact of any advertising interaction.
- Replace Average CPA/Average ROAS with Marginal CPA/Marginal ROAS. Marginal CPA helps you figure out what you paid to acquire marginal returns, so you don’t overspend to reach expensive customers without additional value.
- Replace Impression share lost to bidding with Impression share lost to budget. Keep budgets up and control spend using bids and efficiency targets.
Dig into the details at Search Engine Land.