The main advertising KPIs to achieve in 2024
Posted: Mon Dec 09, 2024 10:01 am
Did you know that Merriam-Webster's word of the year was "authentic" ?
It’s no wonder then that authentic advertising is one of the top trends of 2024.
Measuring the impact of authentic, value-based advertising isn’t as easy as determining the number of clicks or scrolls.
This is why attention measurement is increasingly becoming an important advertising KPI – there is finally a way to measure the real engagement an ad campaign generates, beyond just viewability. How much attention does an ad receive from real users? How engaged are they with the ad’s message or experience?
Here are the top advertising KPIs to watch in 2024, including the newcomer, attention.
Measuring attention
Traditional metrics like viewability are no longer enough, especially as cash app database advertisers strive to create meaningful connections with their audiences. Attention is now being focused on attention measurement , a new KPI recognized by the Interactive Advertising Bureau (IAB) as a valuable tool that helps brands align their campaigns with their key business objectives.
Attention measurement measures each user’s engagement and attention to online ads, and goes beyond impressions to provide insight into the quality of engagement. It’s about how the individual paid attention to the ad, rather than whether they saw it.
Outbrain already uses attention metrics across its suite of digital advertising solutions. In partnership with Adelaide, Onyx by Outbrain ad placements are assigned an AU (Attention Unit) score, which indicates the likelihood of an ad’s intended audience receiving attention.
And the results are in: Toyota launched a pre-roll video campaign with in-article placements on premium publisher sites. Onyx by Outbrain’s campaign received a remarkable attention score, resulting in a 41% increase in attention compared to benchmarks.
MQL to SQL Conversion Rate
In short, this metric measures the transition from one type of lead to another. MQLs (marketing qualified leads) are people who are interested in your offering, but aren’t ready to buy yet. SQLs, or sales qualified leads, on the other hand, are both interested and have the intent to buy, which typically makes them more valuable when your end goal is to increase revenue.
Calculating MQLs to SQLs is simple: divide the number of SQLs by the number of MQLs, then multiply by one hundred. This will give you a clear percentage that you can compare to your goals. This metric is crucial because it tells you how strong your pipeline is (the higher the better). If your ads are reaching high-value leads that convert once they engage with your sales team, then your ads are telling the right story to your customers. If not, you should consider targeting a more specific audience or addressing any mismatches between what’s being advertised and what customers actually encounter when they engage with you.
Cost per lead (CPL)
Cost per lead is an important metric that lets you know how much your business is spending to acquire new leads. From a marketing perspective, it lets you know how effective your campaigns are at targeting consumers who are likely to convert into potential customers. It’s important to note that this metric measures leads, not acquisitions or conversions. In other words, CPL lets you know how much it costs to create a lead, not how much it costs to convert one.
A high CPL isn’t necessarily a bad thing, which is why it’s important to measure this metric against your customer acquisition cost (CAC). Quality leads can be expensive up front but convert quite easily after a meeting with your sales team, resulting in a lower total CAC.
ROAS (Return on Ad Spend)
ROAS tells you how much money your business gets back for every dollar spent on advertising.
Companies that invest in marketing have the main objective of increasing their revenue. That is why ROAS (Return On Advertising Spend) is one of the most important KPIs (Key Performance Indicators) to track, as it directly measures how much your marketing investments generate revenue. For example, if an advertising campaign generates a turnover of €20,000 for an expenditure of €8,000, the ROAS will be 250%, which means that there is two and a half times more money coming in than going out.
When used well, this metric allows advertisers to know if their efforts are paying off. For example, AdRizer’s use of Outbrain’s solutions helped organic beauty brand Ogee achieve a 180% ROAS.
Retention rate
In general, it’s much more cost-effective to retain existing customers than to convert new ones. Retention tends to generate more revenue over time than standard lead acquisition practices. The retention rate KPI tells marketers how well their campaigns are doing at attracting loyal customers.
It’s no wonder then that authentic advertising is one of the top trends of 2024.
Measuring the impact of authentic, value-based advertising isn’t as easy as determining the number of clicks or scrolls.
This is why attention measurement is increasingly becoming an important advertising KPI – there is finally a way to measure the real engagement an ad campaign generates, beyond just viewability. How much attention does an ad receive from real users? How engaged are they with the ad’s message or experience?
Here are the top advertising KPIs to watch in 2024, including the newcomer, attention.
Measuring attention
Traditional metrics like viewability are no longer enough, especially as cash app database advertisers strive to create meaningful connections with their audiences. Attention is now being focused on attention measurement , a new KPI recognized by the Interactive Advertising Bureau (IAB) as a valuable tool that helps brands align their campaigns with their key business objectives.
Attention measurement measures each user’s engagement and attention to online ads, and goes beyond impressions to provide insight into the quality of engagement. It’s about how the individual paid attention to the ad, rather than whether they saw it.
Outbrain already uses attention metrics across its suite of digital advertising solutions. In partnership with Adelaide, Onyx by Outbrain ad placements are assigned an AU (Attention Unit) score, which indicates the likelihood of an ad’s intended audience receiving attention.
And the results are in: Toyota launched a pre-roll video campaign with in-article placements on premium publisher sites. Onyx by Outbrain’s campaign received a remarkable attention score, resulting in a 41% increase in attention compared to benchmarks.
MQL to SQL Conversion Rate
In short, this metric measures the transition from one type of lead to another. MQLs (marketing qualified leads) are people who are interested in your offering, but aren’t ready to buy yet. SQLs, or sales qualified leads, on the other hand, are both interested and have the intent to buy, which typically makes them more valuable when your end goal is to increase revenue.
Calculating MQLs to SQLs is simple: divide the number of SQLs by the number of MQLs, then multiply by one hundred. This will give you a clear percentage that you can compare to your goals. This metric is crucial because it tells you how strong your pipeline is (the higher the better). If your ads are reaching high-value leads that convert once they engage with your sales team, then your ads are telling the right story to your customers. If not, you should consider targeting a more specific audience or addressing any mismatches between what’s being advertised and what customers actually encounter when they engage with you.
Cost per lead (CPL)
Cost per lead is an important metric that lets you know how much your business is spending to acquire new leads. From a marketing perspective, it lets you know how effective your campaigns are at targeting consumers who are likely to convert into potential customers. It’s important to note that this metric measures leads, not acquisitions or conversions. In other words, CPL lets you know how much it costs to create a lead, not how much it costs to convert one.
A high CPL isn’t necessarily a bad thing, which is why it’s important to measure this metric against your customer acquisition cost (CAC). Quality leads can be expensive up front but convert quite easily after a meeting with your sales team, resulting in a lower total CAC.
ROAS (Return on Ad Spend)
ROAS tells you how much money your business gets back for every dollar spent on advertising.
Companies that invest in marketing have the main objective of increasing their revenue. That is why ROAS (Return On Advertising Spend) is one of the most important KPIs (Key Performance Indicators) to track, as it directly measures how much your marketing investments generate revenue. For example, if an advertising campaign generates a turnover of €20,000 for an expenditure of €8,000, the ROAS will be 250%, which means that there is two and a half times more money coming in than going out.
When used well, this metric allows advertisers to know if their efforts are paying off. For example, AdRizer’s use of Outbrain’s solutions helped organic beauty brand Ogee achieve a 180% ROAS.
Retention rate
In general, it’s much more cost-effective to retain existing customers than to convert new ones. Retention tends to generate more revenue over time than standard lead acquisition practices. The retention rate KPI tells marketers how well their campaigns are doing at attracting loyal customers.