Data

Differentiating True KPIs From Vanity Metrics

By August 17, 2017 January 18th, 2018 No Comments

At Coegi, we take great pride in tracking, analyzing, and optimizing toward metrics that are relevant to your goals. This may seem like a no-brainer, but in the digital marketing realm, it’s easy to fall victim to what are known as vanity metrics.

Vanity metrics are typically easy to track, but they’re almost always misleading. Optimizing your campaigns toward them would be a big waste of money.

For example, many brands use a metric called “click-through rate” to determine the effectiveness of their campaigns, but they fail to realize this stat typically reflects accidental interactions between big fingers and small screens and fraudulent clicks from bots that aren’t going to become valuable customers anytime soon.

Digital marketing campaigns produce mountains of data, and it’s pivotal to sift through everything to find the metrics that provide real, actionable insights. That’s exactly what we do at Coegi.

High-quality metrics generally examine both cost and performance, as these two factors illuminate whether you’re utilizing your marketing budget efficiently.

More specifically, we gravitate toward tracking these three realms of metrics:

1.  VERIFIED COST PER IMPRESSION (CPM)We want to make sure your ads are being seen by real-life human beings. Otherwise, any impressions or clicks are invalid — and, therefore, wasteful. CPM is how we verify whether your brand is actually reaching its target audience and maximizing its ad spend.

 

 

 

2.  COST PER ACTION (CPA)Several metrics fall into this category; we use your goals to determine which specific ones we look at. Metrics like cost per video view, cost per verified click and cost per engagement provide us with tangible feedback on what’s working and what isn’t. For specific conversions like sales, Coegi often chooses to track cost per acquisition or cost per lead.

 

 

3.  ON-TARGET PERCENTAGEYour target audience is the demographic that’s most receptive to any of your marketing efforts, so naturally, it’s important to confirm that programmatic campaigns are reaching them. At Coegi, we have a couple different tools and strategies for this. To start, Nielsen Digital Ad Ratings and comScore vCE are third-party measurement tools that provide us with information about demographics and specific audiences. We also utilize “buckets,” where we group certain metrics like impressions, clicks, and conversions with always-on data segments. This is a great way to create a profile of your ideal audience with the segments that index the highest. This approach also gives us substantial insight into who we target in your future campaigns.

We don’t track numbers for the sake of it. We make sure to optimize campaigns toward the metrics that matter — the ones that provide real, measurable value to your business.

If your digital marketing efforts have fallen victim to vanity metrics, we’d love to steer them back on track. Fill out the form below to learn more about how Coegi can help your campaigns!

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