Measuring cost per impression or cost per click is a horrible way to determine the effectiveness of your online advertising. Instead, you should be tracking your cost per sale.
- Set very specific sales goals.
- Design three to five calls to action for your online ads.
- For each call to action, create two to five landing pages designed to entice the user to buy.
- Set up an ad rotation to point each call to action to each landing page.
- Measure the click rate per impression, the time spent on the page, abandon rate and total sales for each combination.
You will need to give the rotation several weeks to gather enough data. Decide which call to action and landing page combination (or combinations) work best.
Narrowing your campaign to the best combinations and continue to measure. The effectiveness of the combinations will change over time. Watch the results and don’t hesitate to pull the ads as returns diminish.