How to Evaluate Your Ad Performance Based on Funnel Levels
To analyze the success of your ads, you need to know how to set performance metrics and measurable goals. You also need to know how to evaluate each level of your funnel. We describe how you can achieve this in this article.
Top Level of Funnel
In the top level of the funnel (the awareness stage), people are looking for answers to their questions and for resources. Things to track at this stage include:
1. The number of new site visitors you received after starting your campaign.
2. The number or pages that the visitors viewed on your site and the time they spent on them. If you have a high bounce rate or if visitors did not spend much time on your site, you may need to make changes. Compare the engagement for different products also.
Middle Level of Funnel
In the middle of the funnel (the consideration stage), marketers begin selling and visitors consider whether or not to take your offer. Things to track at this stage include:
1. The number of conversions from your campaign. Use retargeting to boost conversions. Tweak your campaigns based on your conversion results.
2. Conversions from people who saw the ads but did not click them, also known as VTCs or view-through conversions. After visitors get to your site, how many of them convert after they are shown an ad, even if they did not click on one?
3. The number and quality of deals made resulting from people interacting with the ad campaign. Measure the number of new sales and new customers from them.
4. Keeping track of your CPA (cost per acquisition) is important throughout your whole funnel. It is the campaign spend divided by total conversions.
Bottom Level of Funnel
The bottom level of the funnel (the decision stage) is the stage where prospects are deciding whether or not to buy. Your goal at this stage is to close deals that will gain more customers for you and to upsell customers you already have. You need to determine the lifetime value of your customers and ROI.