You Need To Know These Online Marketing Kpis
Management Summary
Who doesn’t know this situation: You’re sitting in a meeting and online marketing technical terms and abbreviations are being thrown around like crazy. Questions often arise like: What does the abbreviation VCR stand for again? Or how is the conversion rate actually calculated? But don’t worry, we have summarized all the answers for you at a glance.
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Conversion rate
The conversion rate describes the conversion rate from interested users to users who complete their goal. To calculate the conversion rate, impressions/clicks and completions are compared to each other.
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View through conversion rate
Total Conversions % Impressions =View through conversion rateThe average number of target completions that results from the total number of advertisements played (without clicks).
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Click-through conversion rate
Total Conversions % Clicks =Click through conversion rateThe average number of goal completions resulting from the sum of clicks.
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Total conversions
Click through Conversion +View through Conversion =Total conversionsThe total number of completed goals, regardless of whether they result from a click or from a pure advertising display.
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Click rate (click-through rate aka CTR)
The click rate describes the ratio of clicks on an advertising medium to the total number of ad plays (impressions).Click through rate (CTR)= Clicks % Impressions
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Impressions
The impressions describe how often an ad was played and always mean the gross reach, i.e. also multiple contacts.
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Active View – viewable impressions
The Active View describes the number of impressions that were actually visible from all measurable ad displays. By default, an ad is classified as viewable if it was visible for at least 50% of the ad for at least one second.
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Viewability rate
The viewability rate (also called viewability for short) refers to the percentage of how many of the measurable adverts were visible (50%-1SEK rule).Viewability Rate= (Total Measurable Viewable Impressions % Total Measurable Impressions) * 100
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Video Completion Rate (VCR)
This describes the percentage of video completions in relation to video starts. A video is said to be complete when the ad clip has been played completely.Completion rate= Video completes / Video starts
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CPM (aka CPM)
The price per thousand contacts, also known as cost per mille, or CPM for short, is a key figure that can be used to determine how high the advertising costs are for 1,000 adverts. It is important to mention that this also includes multiple distributions to one user (gross contacts).CPM= (media costs/impressions)*1000
Conversely, the media costs can also be calculated if the CPM is known. The formula in this case is:Media costs=( CPM*Impressions)/1000
For example, if media costs and CPM are known, you can easily calculate the expected impressions:Impressions= (Media costs/CPM)*1000
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Cost per Action (aka CPA)
CPA= (Media Costs/Total Conversions)
The term cost per action quantifies the costs that were/are associated with achieving a specific action. These can be, for example, actions such as purchases, registrations or downloads. The advertiser himself decides which event he wants to define as an action.
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Cost per Click (aka CPC)
The term cost per click describes, in short, the click price. It indicates how much an advertiser pays on average ifCPC= (media costs/clicks)
It is important to note that different KPIs should be brought to the fore depending on the campaign goal or funnel stage.
