Advertising Effectiveness Consulting

Every business has an end goal in mind whenever they launch an advertising campaign. Whether a company is looking to generate more revenue, increase brand awareness, or even spread knowledge, businesses use key metrics to establish success criteria and measure the effectiveness of their advertising initiatives.

Furthermore, organizations that effectively track and manage the metrics around their advertising efforts can inform their future strategies and develop robust documentation for “lessons learned.  While some advertising metrics can be easy to identify and manage, others can be complicated to locate and even harder to track. At SIS Global Marketing, we provide specialized advertising effectiveness consulting to plan for future strategies, assess current ones, and help organizations track their overall advertising success. These services can help strengthen the advertising methodologies that organizations leverage and foster a more informed workflow in this space.

What metrics do organizations use to track their advertising success?

SIS Global Advertising Conversion Rate

Conversion Rate

is probably one of the most important metrics used in online advertising. Conversions are any action that an organization is trying to convince customers to perform through their advertisements; however, they are primarily measured in transactions per site visit or ad clicks. To calculate conversion rate, divide the total number of attributed conversions (for example, transactions) by the number of site visits or advertisement clicks and multiply that value by 100 to express the conversion rate as a percentage. Conversion rate can be a great indicator of whether an advertising method increases the likelihood of purchase or another call-to-action.

SIS Global Advertising CLV

CLV (Customer Lifetime Value)

is an essential metric in advertising because it can signify increased profits for business over time. Customer Lifetime Value indicates how much revenue a company can expect from an individual customer over the length of their relationship with them. When calculating CLV, businesses need to multiply the average amount they receive per customer by the average length of relationships with customers. With a higher CLV value, companies can make informed decisions around their advertising budgets and calculate their likely rate of return. Additionally, they can use higher return rates to invest back into advertising and increase their overall revenue.

SIS Global Advertising ROI

ROI (Return on Investment)

is an essential metric for determining the profitability of any business function, not just advertising. This metric is especially useful in advertising planning. It enables businesses to effectively estimate their breakeven point over a given campaign to then plan for future budget allocation. ROI is always calculated the same way, regardless of the context, and involves subtracting the amount spent on a project from the amount gained and dividing that value by the amount paid. Multiply that value by 100 to represent ROI as a percentage, and businesses can determine whether they were profitable on any particular investment.

SIS Global Advertising ROAS

ROAS (Return on Ad Spend)

is very similar to ROI but includes a narrowed scope and is specific to a particular channel or method of advertising. ROAS is a clear indicator of just how effective a certain channel is versus the entire campaign. ROAS will help showcase just how much revenue a specific advertising effort generates. To calculate the ROAS, divide the total revenue gained from an advertisement by the amount spent on the ad and multiply that answer by 100 to represent ROAS as a percentage. The higher the ROAS value, the more impactful a particular advertisement is.

SIS Global Advertising Impressions


are the number of individuals that see a particular advertisement. This metric is widespread in social media and can help organizations determine how many users visit the advertisements they publish. Impressions are an excellent way to assess outreach but do not give businesses an indication of interest.

SIS Global Advertising Engagement Rate

Engagement Rate

is an important metric that is to be used in conjunction with impressions to determine just how effective a particular advertisement or post is at capturing an audience’s attention. Since impressions only tell a company how many individuals saw a specific post, engagement rate paints a more precise picture by quantifying how many people interacted with the same advertisement. Engagement can mean anything from liking a post to clicking on an ad to learn more. The general way to calculate engagement rate is by dividing the total number of engagements by the total number of impressions and multiplying that value by 100 to express the value as a percentage. The higher the engagement rate, the more effective an organization is at capturing the attention of its audiences or influencing actions.

SIS Global Advertising CPA

CPA (Cost per Acquisition)

will help businesses determine how much they spend on any given conversion during an advertising campaign. CPA can also be a great metric to track to understand effective ad pricing and, in some cases, establish agreements where a business only pays when a conversion occurs. CPA is calculated by dividing the total amount spent on an advertising effort by the number of attributed conversions.

SIS Global Advertising CPC

CPC (Cost Per Click)

is a metric used by many websites or domains to indicate how much they charge a business every time someone clicks on its advertisement. In the online world, organizations pay per click, which is just the reality of the situation. Ad tech solutions can help manage these values to reduce advertising costs. Still, organizations need to track CPC for a greater understanding of how much an ad costs and determine if a particular channel’s value proposition is worth it. The CPC is calculated by dividing the total amount spent by the number of measured clicks. This value can inform ROI, ROAS, and other metrics and show a business just how much “bang for their buck” they are receiving.

SIS Global Advertising CTR

CTR (Click-Through-Rate)

is very similar to engagement rate in that it signifies just how effective an advertisement is at drawing people in and getting them to click on a particular ad. CTR differs from engagements in that it only includes clicks and does not account for comments, likes, or other forms of engagement relevant in different environments. CTR focuses solely on the number of individuals that click a link. To calculate CTR, a business divides the total measure number of clicks on their ad by the total number of impressions and multiplies that by 100 to display the value as a percentage.

While the metrics outlined above are essential to most advertising campaigns, they are not the only metrics that should be tracked and managed closely throughout the advertising process. Numerous metrics in advertising help organizations succeed long-term and align with their consumers in the most cost-effective way possible. Businesses must understand that their advertising efforts are an investment, and therefore they should be treated as one.

What does advertising effectiveness consulting do for a business?

Understanding the effectiveness of an entire advertising campaign, or even just a particular channel, helps organizations view their marketing efforts holistically and positions them better for future endeavors. At SIS Global Marketing, we want to see our customers succeed – that’s it. Having a robust understanding of advertising effectiveness and applying it to every campaign in a structured, well-thought-out manner will pay huge dividends in the long run. Launching ad campaigns with no formal measurement of success and no plan to do so will undoubtedly result in high advertising costs, ineffective campaigns, and wasted resources. A practical advertising success measurement criterion strengthens foundational knowledge for advertising initiatives, enables organizations to understand the advertising market, and protects businesses from overspending on inefficient advertisements.

Why SIS Global Marketing?

Our professional marketing, advertising, and consulting teams have fostered success stories for new and existing brands all around the globe.

It is our mission to see our clients do well no matter what they are trying to accomplish. We offer a variety of services that can put our clients on the right path forward and can tailor solutions to nearly any business case. Some of the services our team provides include:

  • Advertising Auditing (to benchmark current state)
  • Metric Development and Establishment
  • Short- and Long-Term Performance Tracking
  • Advertising Contingency Plan Development
  • Budgeting and Cost Analysis
  • Advertising Bidding and Channel Selection
  • Outreach and Brand Awareness Tracking

Our teams have learned how to measure success seamlessly in the world of advertising – eliminating the guesswork and putting our partners on a path to heightened success. Contact us today to see how SIS Global Marketing can transform your advertising success story.

SIS Global Advertising Consultation