Within the various platforms that allow the creation of advertisements, the metric cost describes the total spendings for a specific ad. Further the metric is the basis to calculate various KPIs such as Cost-per-Mille (CPM) or Cost-per-click (CPC).
Reasons to track your ad costs
When your focus is on paid marketing activities, costs should be tracked in order to keep an eye on your budget and notice the effectiveness of your spendings and optimize accordingly.
Common variations of Costs
|Ad Cost||The sum of money spent on digital advertising activities.||Google Analytics, Facebook, Instagram, Twitter|
|Video Cost||The sum of money spent on digital advertising for a video ad.||Facebook, Instagram|
|Cost in local Currency||The ad spendings in the local currency of the company profile.||LinkedIn, Google Ads, Google Campaign Manager, Linkedin|
|Cost per inline Link Click||The cost of an inline link click, which is the action of clicking on a link within a post by the user.||Facebook, Instagram|
How can tracking Costs help you to become more data-driven?
As mentioned above the cost metric is a main part of several rates such as:
- Cost per Click
- Cost per Mille (i.e. Cost per Thousand Impressions)
Creating a common understanding of these metrics and consensus on the calculation within your team, can give you a great advantage. Farther it may reduce the time spent on discussing the monthly, quarterly or annual reports.
Nexoya Pro Tip: Compare your ad costs to 3rd party metrics within the weather integration, such as perceived temperature, air humidity or cloud coverage. In our experience we have seen interesting negative or positive correlations of local weather two for instance your CPM.
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