The Metrics for calculating the impact of a digital campaign has been subject to change, thanks to the many new platforms and techniques which are emerging.
CTR, CPM, CPC are a couple of things you need to know to promote your campaigns on social media sites (FB, Twitter)
With the above example for an ad on Facebook, you can relate the below concepts.
Click-Through Rate (CTR)
CTR measures the effectiveness of an advertisement. It is calculated using the following formula that involves the number of clicks and impressions: CTR = (Clicks/Impressions) x 100
A high CTR means that it attracts attention and get clicks often. A low CTR means the ad is under-performing and should be evaluated further. Other similar terms include: response rate, click-thru ratio.
Example: A 1.0% CTR means that for every 100 impressions, there is 1 click.
Cost Per Impressions (CPM) Vs Cost Per Clicks (CPC)
CPM stands for cost per 1,000 impressions. This means you’ll pay when people see your ad. This is practiced when you want to get more people to see your ad and like/repost/tweet/blog, etc. For example, if your goal is to get more people to like your Page, your ad will be shown to people in your target audience who are most likely to also like your Page.
CPC stands for cost per click. If you are paying for clicks, you’ll be charged each time someone clicks on your ad or sponsored story. **You should choose to pay for clicks if you’re advertising an external website. This is because paying for clicks isn't as valuable if your goal is to get people to take an action on Facebook. When you pay for clicks, your ad will be shown to the people who are most likely to click on your ad, but who may be unlikely to take any other action such as liking your Page, engaging with a Page post, installing your app, using your app or joining your event.
More coming Soon.
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