Having a good strategy is essential but so is knowing the results, so you need to measure programmatic buying KPIs. This will help you know exactly what you are doing well and what you need to improve in case something is not working.
More and more companies and brands are using this type of advertising, as ad spaces can be acquired in an automated way. If you use them you will have the opportunity to place ads on different Web sites, online newspapers, blogs, and many others.
Therefore, if you are going to work with this type of advertising, it is very important to know the most relevant KPIs for programmatic buying. That way you can know if your ads are meeting the goals you set from the beginning of the campaign.
Learn about programmatic buying KPIs
The perfect complement to a good strategy is the final analysis of the results obtained, and in the case of advertising this is no exception. Therefore, you need to be clear about the most important programmatic buying KPIs so that you can focus on them:
1.- Impressions
One of the main metrics you should analyze is impressions, which help you know how many times your content was shown in your inventory. They do not relate to who saw your ad, but they do relate to whether your ad was seen.
This means that you cannot assign a reliable quantitative weight to these metrics. Keep in mind that it is not action-based, but serves as a valuable part of the calculation of other programmatic buying KPIs. Which will lead you to better campaign performance.
Now, it is important for you to know that there are two types of ad impressions, namely:
Published: when the published content is broadcast, it already counts as an impression.
Visible: when more data is used to understand whether or not a user has seen the ad content.
It should be noted that published impressions are not reliable and viewable impressions are more accurate. Therefore, the latter are more relevant, as they allow usable performance data analysts to have clearer information to improve the campaign.
2.- Conversions
Every ad campaign has goals to be achieved through the actions consumers have to take in the ad you have directed them to. This is where another critical performance metric comes to the fore; it is neither more nor less than conversions.
It covers any action you want the user to take, i.e.: buy, register, download, comment. It is important for you to know that the actions mentioned are measurable. Conversions tell you if your ad is working because people are taking interest.
You can calculate conversions based on a specific goal of your campaign, such as free trial registrations or actual product sales. For example, if you are looking for sales, conversions, or customer acquisition, it is good to focus on retargeting ads. This will bring users back to the Web site.
Do you have a high CR (conversion rate)? This means you have a successful design and landing page. It indicates that users are interested and want the products or services you offer. So you need to make sure your landing page is optimized and your offer is solid so that it attracts visitors.
2.- Click
When you talk about performance metrics, you can’t not mention clicks. This is one of the most revealing programmatic buying KPIs, so you can’t skip them in measurement. If you think all clicks are intentional, you are wrong and should consider that not all of them generate conversions.
Keep in mind that if you combine click and impression metrics, you will be able to calculate usable percentages. They will be of great help when you need to make campaign budget decisions and improve the ROI of your ad.
But surely what you’re interested in knowing is how you can calculate this important rate; Simply divide clicks by impressions and multiply by 100. This will help you better understand the success of your ads when combined with other metrics.
Think that the more users click on your ad, the greater the interest in your offer. You can try a video or mobile app campaign to get people to click to get more information. Keep in mind that clicks bring visitor traffic to your website, which helps improve your site’s ranking on Google.
If you have a low CTR compared to high impressions, it means that users see your ad but do not click on it. So if it is lower than average, it is better to run an A/B test of your ads to see what your audience responds best to.
4.- Cost
Among the KPIs of programmatic buying is cost, a financial metric. As you already know, you need money to run these types of ads, so you need to set a budget that ensures the right inventory and target audience.
This means you have to measure cost in relation to many other advertising metrics. How can you do this? CPM, cost per click, cost per share, cost per display. A host of other financial metrics essential to understanding campaign success.
Consider that cost KPIs directly influence how you invest in your next ad campaign. Knowing these results gives you the opportunity to work with better quality inventory.
The idea is that you keep testing until you find the correct cost levels and this will help you determine your overall ROI.
5.- Income
Continuing with financial metrics, there is income. To get there you have to go from gross income to net income. It is important that you know that along with cost metrics you can calculate and refine media, data, agency, technology and other fees.
It will also help you optimize the profit margins of your campaigns over time. Keep in mind that the most relevant income here is the overall income generated by your ad. So is the revenue generated per visit and the revenue generated per page RPM (Revenue Per Thousand).
6.- Coverage
Another of the programmatic buying KPIs is coverage; it is a brand metric. This is the perfect time to ask how many unique users your ad campaign has reached. And with this indicator you will be able to know exactly.
Unlike impressions, coverage is calculated per person, not per potential view. This metric can be compared with other key metrics such as CTR, frequency and impressions to better understand the success of your programmatic ads.
You must keep in mind that paid coverage often increases the viral and organic coverage of your non-paid content. Also, estimating reach can be a great help in controlling the parameters of a new ad campaign.
7.- Return on advertising investment (ROAS)
To finish with programmatic buying KPIs, there is another performance metric, ROAS or return on advertising investment. It should be noted that it is an indicator specific to this type of campaign that is usually used in the same way that return on investment (ROI) is used.
The difference here is that ROAS measures the gross revenue of your advertising spend and determines the current effectiveness of your advertising. Whereas ROI tends to focus more on the big picture.
Know that a good ROAS ratio is based on your niche, investment and target audience. Therefore, it is important to plan your strategy very well so that you can get the results you were expecting.
Measure your programmatic buying KPIs!
You already know the 7 main KPIs of programmatic buying that you need to measure if you want to find out the results of your advertising campaigns. Remember that this is what will let you know what you need to improve and what is going well.
Each of these metrics will be very useful, not only for the campaign you have launched, but also for analyzing your strategy and optimizing it for the next ones. This is why it is so important to always measure results, knowing that the indicators place you in the reality of your ad.
And if you need help finding advertising space, at Antevenio we can help you expand your brand’s reach through appropriate programmatic advertising strategies.
