One of the biggest advantages of PPC advertising platforms is that they are extremely measurable in that they allow you to find out if your campaigns are profitable or not. Analyzing your campaign’s performance is key in understanding how to improve your marketing results.
When evaluating the performance of your Twitter advertising campaign or performing an account audit, your KPIs are one of the most important aspects of your account to look at. You should always looking to improve the content that you are sending out, but you’re not able to improve it if you don’t know how that content is performing.
Here are the recommended metrics that you should be tracking. Each of these data points are available in your Twitter ad dashboard. You can access it by heading to your Twitter Ads dashboard and selecting the campaign’s menu at the top left.
- Spend: This tracks overall spending on a particular tweet within the date range selected. This lets you know what is going on in your account and how much you’re spending.
- Clicks: this tracks the number of people who have clicked on your ad.
- Impressions: An impression occurs when a tweet is displayed. So, this metric represents the number of times users saw your tweets on Twitter. If your spend is low and your impressions are high, then you’re doing an excellent job.
- Clickthrough Rate (CTR): Click through rate is one of the most important KPIs for any PPC account because it tells you whether a particular ad copy is effective for your campaign. CTR is calculated by dividing the number of times an ad was clicked by the number of times the ad was shown (impressions). For example, if your ads had 40 clicks after 2500 impressions, your CTR is calculated thus: 40/2500 = 1.60%. A low click through rate is a good indication that an ad is not relevant to, or resonating well with its intended target audience. On the other hand, an ad with a high click through rate indicates that the ad is successful and relevant to its intended audience. Your target CTR on Twitter is 0.50 or higher.
- Cost per Engagement (CPE): This is one of the most important KPIs because it is directly linked to your bottom line. It tells you how much, you are paying each time your tweet is interacted with. Actual CPC is calculated by dividing the total cost of your clicks by the total number of clicks. For example, if you paid a total of $85.00 for 500 clicks, your actual CPC is $0.17 (85/500). This means that you spent 17 cents for each click. This metric puts the amount of engagements you’re getting into perspective. For example, you may have received 5 engagements on photo A and 10 engagements on photo B. However, what if photo A had 20 impressions to get those 5 engagements, while photo B had 20,000 impressions?
- Cost-per-Action/Conversion (CPA): This is the average amount it costs to acquire a new customer or lead. A conversion can be a sale, download, lead, newsletter sign-up, etc. The formula is total cost divided by total number of conversions. If an account spends $100 and receives 5 conversions, the cost per acquisition is $20. Let’s say your usual new customer represents $100 in gross profit to you. If it takes $50 of your PPC campaign to produce a new customer, then your CPA is $50. Your net profit is $50. This method directly ties return on investment (ROI) to the cost of advertising.
- Engagements: This is the number of times people have interacted with your tweets. This includes someone clicking, mentioning, retweeting, favoriting or replying to the tweet. Use this metric to determine how well your calls-to-action are doing.
- Conversions: A conversion is the completion of the desired action you want a visitor to take after clicking your ad and arriving at your site. This action could be anything including making a purchase, completing a lead generation form, downloading a whitepaper, signing up for your webinar, etc. . If you’ve defined conversions as sales on your website, that is one event that can be tracked as a conversion. You can also track people who visited a particular page on your website such as the pricing page. It all depends on what you define as a conversion.
- Engagement Rate (ER): Engagement rate is calculated in the same way as click through rate. This is done by dividing the number of times an ad was engaged with by the number of times the ad was shown (impressions). For example, if your ads had 40 clicks after 2500 impressions, your ER is calculated thus: 40/2500 = 1.60%. A low engagement rate is a good indication that an ad is not relevant to, or resonating well with its intended target audience. The reverse is also true: an ad with a high engagement rate indicates that the ad is successful and relevant to its intended audience.
- Conversion Rate: The number of conversions, divided by the total number of clicks. For example, if the ads in your campaign got 300 clicks and four conversions, the conversion rate is 1.33%.
- Budget: This is the amount you are willing to spend on a campaign each day. Each campaign must have its own daily budget.
- Reach Percentage: This shows how many of your followers saw a particular tweet. This is calculated by dividing tweet impressions by your total followers. Knowing how many followers are seeing your tweets is a good indicator of whether or not you’re tweeting at the right time.
You can export the data as a CSV and copy and paste to your ad planner or put it in manually.
The Twitter Conversion Pixel
Twitter provides a conversion pixel that allows you to track conversions on your website from your ad campaign. The pixel monitors how users who click through from your Twitter ad are engaging with your site.
The conversion pixel is one of Twitter’s most useful tools for advertisers because it allows you to determine whether people who have clicked your ad are doing what you want them to do.
So, exactly what is the Twitter conversion pixel?
The conversion pixel is a piece of code that you are required to add to the head tag of specific pages of your website. To get your unique tracking code, go to ads.twitter.com → open the Tools dropdown menu → click “Conversion tracking” → agree to the terms → click “Generate website tag for conversion tracking”.
This pixel helps you monitor whether users who click through to your website from your ad are doing what you want them to do. After you’ve installed the Pixel, you’ll start getting your conversion data in the Twitter Ads dashboard.
Now, let’s talk about the events that you can track with the Twitter conversion pixel. So, a Twitter conversion pixel works in a similar way to conversion pixels in AdWords or Facebook.
Conversion tracking is really important because it allows you to measure the success of your advertising campaign. If you’re not tracking conversions, there’s no way for you to know whether or not your advertising campaign is actually driving conversions. More importantly, not tracking conversions means you have no idea how much you are paying to generate any conversions or sales that you might be getting.
Adding the Conversion Tracking Code
You need to add the code to specific pages of your website. Now, one common mistake that people make is that they install the conversion pixel on the wrong pages. If you add it to a page like the home, it means every time someone navigates to your site, you’re going to get a conversion which is just going to mess up your results. You need to only install the pixel in the head tag of the page that you want to track.
If you are selling something on your website, you need to install it in the head tag of the page that is loaded after the user has bought the product. You know, the html page that says “Thank you for your order.” If you add it to the wrong page, it means that every time that page loads, the conversion pixel is going to fire and you’re going to think you got a conversion when you did not.
Next, if you want to track the number of people that signup to your email campaign after clicking your ad, you need to add it to the page that loads after the user has submitted their email address.
If you add it to the wrong page, you’re going to get inaccurate data, because every time that page loads, it will indicate that a conversion has occurred, which will not be the case. So, send the conversion pixel to your developer and make sure that the pixel is added to the correct page.
So, that’s all there is to it. If you’re not comfortable with adding code to your website, then I suggest you hire a developer to add it to the head tag of the thank you pages of your site, or any page that you want to define as a conversion.
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