Most often, this indicator is used in contextual advertising - "Yandex.Direct" and "Google AdWords" respectively. The indicator is assessed very simply - there are systems thanks to which we see how much a particular click costs, and what advertising campaigns it relates to.
But it is not how we evaluate that is important, but how we manage, and how the settings that we set in the advertising itself affect. First of all, we need to correctly configure the audience to which we are shown - the more commercially oriented it is, the greater the competition, and accordingly, the more expensive the click.
Contextual advertising is an auction system, which includes such an important thing as the CTR indicator. CTR is the ratio of ad impressions to clicks, i.e. the higher our CTR percentage, the better the Yandex and Google systems understand that our ad is relevant to what a person is looking for. Accordingly, we get more clicks at a lower cost, in simple words, search engines make a certain discount due to the fact that people are interested in it.
And you can manage the cost why choose our service per click by working with queries and ads. Ideally, our ad should be made separately for each query, and it should be as appropriate as possible. Thus, we monitor the CTR indicator, maximum ad relevance to the search query and competition in our queries.
How to implement KPIs in the work of the marketing department
When implementing KPI in an organization, it is necessary to take into account its specifics, goals and objectives, and the flow of business processes. This will entail a change in the principle of calculating remuneration for labor, so it will be necessary to conduct an explanatory conversation with employees, explaining that the more effectively they work, the higher their income will be.
First of all, you need to decide what responsibilities the internet marketer will have.
Marketer in the company
Keep in mind that the KPI calculation formula will only work if it is possible to mathematically measure the indicators according to the marketer’s tasks and their dependence on him.
Increasing the reach of the target audience.
Attracting new customers (growing the customer base).
Increasing audience loyalty (number of positive reviews, recommendations, etc.).
Increase in repeat acquisitions (strategy development).
Increasing brand awareness and trust.
To accomplish these tasks, a marketer must have certain human (designers, analysts, copywriters, programmers, etc.) and material resources. If you do not control the budget, you will not be able to correlate your expenses with the marketer's results.
Stages of preparation for launching the system:
Defining the overall goal of the company – what you want to achieve within a certain time frame.
Formulation and setting of specific goals for the marketer.
Breaking down the marketer's salary into two parts: salary and bonus. The bonus amount will depend on the work results (for example, 30% is the salary, and 70% is the bonus paid if the plan is fulfilled).
Defining key performance indicators for a marketer.
Developing a plan with optimal performance indicators.
Also, to organize the process of setting tasks, promptly entering data and ensuring control over how KPIs are being met, it is necessary to implement a CRM system. If this is not possible, you can work in Excel.
Implementation of KPIs in the work of the marketing department