In today’s business environment, advertising plays a crucial role in attracting new customers and increasing profits. However, not every advertising campaign is effective, and not all entrepreneurs know how to properly evaluate its results. That is why Voice Marketing can analyse key metrics. This is a mandatory step for every business owner who wants to optimise their marketing expenses and achieve maximum results.
Tracking the right metrics helps:
- Determine how effective an advertising campaign is
- Optimise costs so you don’t waste your budget on unprofitable ads
- Improve traffic quality by focusing on potential customers
- Increase profitability by adjusting advertising strategies
In this article, we will consider five key metrics that allow you to objectively evaluate the effectiveness of advertising. Understanding these indicators will help you make informed decisions and get more from the invested funds.
Metric 1 — ROI (Return on investment in advertising)
What is ROI, and how to determine it
ROI (Return on Investment) — is one of the most important indicators in marketing that allows you to evaluate the effectiveness of an advertising campaign. Simply put, this indicator helps you understand how much profit each hryvnia spent on advertising brings.
How to determine ROI? If you launch advertising and see that it brings more money than was invested, then your advertising works effectively. If the costs significantly exceed the profit, it is worth revising the strategy and optimizing the campaign.
Example:
- You invested funds in advertising and received a flow of new customers who made purchases — this is a positive ROI.
- You spent a budget on advertising, but it did not bring enough customers to cover the costs — this is a negative ROI.
Why ROI is critically important for business
ROI gives a clear understanding of whether advertising budgets are being spent effectively. Business owners can avoid unnecessary expenses and focus on those campaigns that bring the maximum result.
Here is why ROI is of great importance:
- Cost optimisation – allows you to invest in effective advertising channels and reduce spending on unprofitable strategies.
- Advertising performance measurement – helps you understand which advertising formats work best for your business.
- Long-term planning – by analysing ROI, you can create advertising campaigns that not only bring short-term results, but also work in the long term.
Important!Not all advertising campaigns yield immediate results. For example, advertising aimed at increasing brand awareness may have a relatively low ROI in the short term, but generate significant profits in the future. Therefore, it is worth analysing the effectiveness of advertising taking into account various factors.
Metric 2 — CPA (Cost of customer acquisition)
CPA (Cost Per Acquisition) — is a key indicator that determines how much it costs to acquire one customer through advertising. The lower the CPA, the more effective the campaign.
How to correctly determine CPA
To evaluate CPA, you need to take into account all advertising costs and the number of customers attracted. Important:
- Analyse CPA separately for each advertising channel (Google Ads, social media, email marketing).
- Take into account not only advertising costs, but also additional costs (e.g., for creative content or SMM).
- Evaluate CPA dynamically — monitor changes when making adjustments to the campaign.
Methods for reducing CPA without losing customer quality
To reduce CPA without losing quality audience, you should use the following methods:
Targeting optimisation
Tailor your advertising to a more relevant audience. Utilise lookalike audiences, retargeting, and analyse user behaviour.
Increasing CTR (ad clickability)
The more clicks an ad receives, the cheaper the advertising costs. Use strong offers, relevant headlines, and test different ad formats.
Landing page optimisation
If traffic comes to the site but does not convert, the CPA will be high. Improve UX/UI, reduce page load time, and clearly formulate a call to action.
Automation of rates
Use Google Ads and Facebook Ads algorithms that automatically optimise bids to attract high-quality customers at the lowest price.
Testing different advertising formats
A/B testing helps you find the most effective creatives, headlines, and CTAs, which can significantly reduce your CPA.
Continuous analysis and optimisation of CPA allows you to use your advertising budget effectively and attract more customers without unnecessary expenses.
Metric 3 — CTR (Ad clickability)
CTR (Click-Through Rate) — This is the percentage of users who clicked on an advertisement after viewing it. It is determined by simple logic: if many people see an advertisement but almost no one clicks on it, then the advertisement is not working effectively.
A high CTR means that the ad is appealing to the target audience, while a low CTR signals the need to change the creative, text, or targeting audience.
How CTR affects advertising effectiveness
CTR directly affects the cost of advertising, the quality of traffic attracted, and the overall effectiveness of the campaign.
Here are the main influencing factors:
- Cost per click (CPC). On most advertising platforms (Google Ads, Facebook Ads), ads with a high CTR receive a lower price per click because the system considers them more relevant to users.
- Traffic quality. The more people who are interested in clicking on your ad, the higher the chance that they are genuinely interested in your offer.
- Ad ranking. In Google Ads, CTR is one of the key factors affecting Ad Rank. A higher ranking allows you to show your ads in better positions without having to increase your bids.
- Budget optimisation. A high CTR means more clicks for less money, allowing you to get more potential customers for the same budget.
- Increased conversion rate. If users actively click on ads, they are likely to be more willing to purchase or interact with your business.
If the CTR is too low, this may indicate:
- Poor targeting — advertisements are displayed to the wrong audience.
- Irrelevant creative or text — users do not see value in your offer.
- Lack of clear action (CTA) — people don’t understand what they need to do.
Ways to increase CTR for better results
To improve CTR and make advertising more effective, the following aspects should be taken into account:
1. Optimisation of headings
- The headline is the first thing the user sees. It should be clear, attractive, and contain the main benefit.
- Use numbers and facts: “30% discount on all products!”
- Use triggers: “Only today!”, “Top product of 2024!”
- Address your audience directly: “This course will help you earn more.”
2. Relevance of the advertisement to the audience
- Advertisements should be as accurate as possible for each user group. If an advertisement does not meet the demands or needs, the CTR will be low.
- Use dynamic ads that adapt to user queries.
- For Google Ads, include keywords in headlines and descriptions.
- For social media, test different audience segments to find the best fit.
3. Strong call to action (CTA)
CTA (Call-to-Action) is what makes a user click on an advertisement. It should be simple, clear and motivating.
Poor CTA: “Go to the website” (it is unclear why this should be done).
Good CTA: “Get a 20% discount now!” (clear benefit).
Examples of CTAs:
- «Learn more»
- «Buy at a discount»
- «Sign up for a consultation»
4. Using A/B testing
Even the best ad can be ineffective if it hasn’t been tested. Always run several ad variations and analyse which one has the best CTR.
- Test different headlines and CTAs.
- Try changing images and videos.
- Experiment with colours and designs.
5. Using emotions and urgency
People respond to emotions as well as limited offers. Add elements of urgency and benefit to your advertising.
- «Last places in the group!»
- «Free delivery today only!»
- “The offer is valid until the end of the week.”
6. Use of high-quality visuals and videos
- On Facebook, Instagram, and YouTube, CTR increases significantly when using bright images and dynamic videos.
- Avoid stock photos — unique images work better.
- Add contrasting colours and highlight important details.
- Videos lasting 5-15 seconds work better than long videos.
7. Optimisation of mobile versions
Most traffic now comes from mobile devices, so your ads must be adapted for smartphones.
- Short texts that are easy to read on a small screen.
- Large buttons for easy pressing.
- Minimum of unnecessary information.
Metric 4 — Conversion Rate
Conversion Rate — This is an indicator that clearly shows how effectively your advertising converts potential customers into real actions: purchases, applications, subscriptions. In essence, this is the main answer to the question: “Does advertising work for results?”
What is conversion and how to measure it
In marketing, a conversion is any targeted action taken by a user:
- Purchased a product or service
- Submitted an application
- Subscribed to the newsletter
- Signed up for a consultation
In other words, it is an action that brings the customer closer to making a purchase or directly closes the sale.
Important: not all interactions = results. You can have many clicks and views, but if there are no real actions, the advertising is not working.
Therefore, Conversion Rate is about quality, not just quantity.
Successful marketing is not just about driving traffic, but also convincing people to take action.
Optimising the sales funnel to increase conversion rates
The key to a high conversion rate is a well-thought-out and convenient sales funnel. It begins when a customer sees your advertisement and ends with the desired action.
Here’s what you should check and optimise:
Is your advertising reaching the right audience?
A clear message, a relevant offer, the right formats. If the target audience is not right, even the perfect website won’t help.
Is there a clear call to action?
The client must understand: what, why now, and why they need it.
Examples of strong CTAs:
- “Get a 20% discount today”
- “Sign up for a free consultation”
- “Try the demo with no obligation”
How easy is it to interact?
If you have to go through five steps to place an order, you lose up to half of your customers.
- Minimum clicks
- Simple form
- Intuitive interface
Is there social proof?
Reviews, real cases, client logos — these build trust. Without trust, there is no action.
Does the website deliver results?
- Adapted for mobile devices
- Loads quickly
- Not overloaded with text
- Visually “catches the eye”
Do you accompany the user after the click?
Automatic letters, reminders in messengers, and retargeting help to “push” warm customers who are still hesitant.
Are you testing different options?
The market is changing. The audience is changing. Behaviour is changing. Marketing = constant testing. Headlines, CTAs, colours, messages — every element affects conversion.
Metric 5 — LTV (Customer Lifetime Value)
LTV shows how much profit a customer brings in over the entire period of interaction with the brand. This is one of the key metrics for strategic planning, which allows you to evaluate the effectiveness of marketing not only in the moment, but also in the long term.
How to calculate LTV and why it matters
LTV helps you understand:
- How much can you spend on customer acquisition?
- Which customer segments are the most profitable?
- How to forecast profits for the coming month
Advertising campaigns become more effective when businesses focus not only on the first purchase, but also on repeat interactions.
Strategies for increasing LTV for stable business growth
- After-sales communication — reminders, personalised offers, useful content
- Loyalty programmes — bonuses for repeat purchases, personalised discounts.
- Personalisation — recommendations for goods or services based on previous actions.
- Cross-selling and upselling — increasing the average cheque through added value.
- Service — high-quality service encourages customer loyalty.
The longer a customer stays with you, the higher their LTV and the more stable your business.
These five metrics — ROI, CPA, CTR, Conversion Rate, and LTV — provide a complete picture of advertising effectiveness. They enable you to make informed business decisions, reduce costs, and increase profits. This data should form the basis of every advertising strategy.
Contact Voice Marketing for a professional analysis of your advertising campaigns and clear recommendations for improving their effectiveness. We will help your business grow through precision marketing.
