Make sure you’re getting the most out of your retargeting campaigns by creating a culture of testing and optimization to drive your marketing strategy forward. When developing creative, try using a subset of ads with different CTAs, color schemes, or copy. See which variables produce a higher click-through rate, and optimize your campaigns accordingly. You’ll gain perspective on actual customer behavior that may change the way you approach your campaigns. Instead of going after cheap clicks, focus on generating incremental conversions, which is much more effective at moving the needle for the business.
Key Retargeting Metrics
eCPM: The “effective cost per thousand” is calculated by taking total earnings, dividing it by the number of impressions served and then multiplying it by 1,000.
CTR: The “click thru rate” is the number of times an ad was clicked divided by the number of impressions served (and multiplied by 100 to express as a percentage).
CPC: The “cost per click” is calculated by taking the total money spent divided by the number of clicks received for a campaign.
eCPA: The “cost per acquisition” is calculated by the campaign cost divided by the total of impressions served multiplied by the CTR multiplied by the conversion rate. The “effective cost per acquisition” tells you what you would have paid if you had purchased ad inventory on a “cost per action” basis (as opposed to a “cost per click” or “cost per impression”).