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Advertising Effectiveness
Advertising effectiveness is based on knowing how your ad performs. The only way to measure performance is to track your ad impressions and click through rate (CTR). The CTR is a measure of conversions.
Cost Per Action or Acquisition (CPA) is a basic measure that can be applied to all advertising because the purpose of any ad is to sell a click and that click is the beginning of a sequence of actions in a campaign. The cost of advertising is based on what action a viewer takes. In every case the action will be either click or no click. Cost is determined in a number of different ways depending upon the action, ad contract, and metrics used.
An important bottom line measurement is to determine Effective Cost Per Action or eCPA. The eCPA metric is a measure of advertising effectiveness based on what the advertiser paid for the ad. It tells you how much it costs to get a new customer. The eCPA calculation is:
eCPA = Total Ad Spend divided by the Total Conversions
All this and more is available today at Web Ad Tutor Advertising and Website Performance Agency.
