8 terms that help measure the effectiveness of paid traffic

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Measuring the effectivess of paid traffic is crucial to understanding the return your ad dollars bring to your business. Here, we explain what paid traffic is and introduce some terms that measure the successes of your paid traffic campaigns.

what is paid traffic?

Paid traffic is the website visitors who come to your website after interacting with a search ad they have seen elsewhere online. It is important to measure the success of your advertising campaigns to ensure that investing in this digital marketing tactic is beneficial for your business. It can also reveal if there are any areas you can improve your online advertising strategy.

terms that uncover the effectiveness of your paid traffic

The following terms explain how the effectiveness of your digital advertising campaigns is measured. Note that all these measurements take place within a set time specified by your digital marketing report.

Average CPC

The average amount being charged per click on an ad.

Clicks

The number of times a post, link or ad has been clicked on.

Conversions

The number of times that an action we have set up has been performed on the website. This may include clicking on your email address or phone number on the website or submitting a contact form on your website.

Conversion Rate

The number of visitors to a website that completed a goal (a conversion) out of the total number of visitors to the website.

Cost/Conversion

How much it costs on average to gain each of the conversions on your website. It’s calculated by dividing the total ad spend by the number of conversions.

Click-Through Rate (CTR):

Click-through rate is the percentage of users who click on a specific link to the number of total users who have viewed a page or ad.

Impressions

The number of times an ad was on screen for the selected target audience.

Search Impression Share

This is the percentage of impressions that your ads received compared to the total number of impressions that your ads could get.

We hope you learned a bit more about measuring the effectiveness of paid traffic for your business!

Have any questions? Contact us today and we will walk you through your digital marketing results so that you can empower your marketing!