How to measure the effectiveness of ads

effectiveness of ads

Using contextual advertising (CA) allows a potential client to find ads according to a given search query. This increases the chances of a deal being made, boosts brand recognition and has a positive effect on the firm’s image. The degree of effectiveness of an advertising campaign depends on several parameters.

CTR indicator

This abbreviation stands for click-through-rate statistics which shows the number of clicks through to the website after seeing an ad. This parameter helps to determine which marketing channel is profitable, and which one leads to a loss of money. CTR is used to evaluate different tools for increasing traffic.

CTR can be calculated using the formula:
Clicks/number of impressions x 100% = CTR
It is recommended to analyse the statistics on a monthly basis using Google AdWords or Yandex.Direct services, which show how the indicator changes over time.


The value of the ratio depends on several aspects:

  1. Quality of the advertising campaign.
  2. Proper selection of key phrases and words.
  3. Understanding the wants and needs of your target audience.
High CTR in Advertising

CPC metric

The CPC is the price per click on an ad. The amount of money invested by the advertiser for each successful display of an advertisement is calculated using the formula:
Cost per click = CPC
A click-through to the website is deducted from the advertiser’s account.

The systems used to determine the cost per click are flat-rate and bid-based. In the first case, the price is announced by the owner of the site before the activation of advertising and does not change. The second option involves an auction between several advertisers, where the highest bidder wins.

CPC allows you to determine the return on investment and the most effective advertising format, as well as the conversion rate of the website.

Bounce and time on site

These parameters will only help you to get an objective assessment of your marketing campaign in conjunction with the presence of conversions. By themselves, they are only indirect indicators.
Bounce – stays on the page no longer than 15 seconds, which is caused by obtaining the necessary information or not wanting to make an order.

Time on site is defined as the average length of time spent on the web resource, from the start of the session to the moment the interaction with the page is terminated.

Calculation of CPA and CPL metrics

CPA and CPL tools can provide a more accurate analysis of the effectiveness of your advertising campaign. It helps to understand whether or not a business has managed to make money from an ad.
The name CPA is a metric for the cost of performing a targeted action which increases the advertiser’s wealth.

The formula to calculate:
Sum of ad spend/number of targeted actions = CPA
CPL is the cost of acquiring a lead (buyer’s contact details).

The calculation is done by formula:
Sum of advertising costs/number of leads attracted = CPL
The integrated use of the metrics described above allows for a full analysis of the effectiveness of marketing tools and techniques, and to select more effective ones, if necessary.