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Deep Dive into Trackable Metrics: A GlossaryDeciding which metrics to track can feel like being thrown into the deep end. Of the ocean. In the middle of a storm.

Throw in the bevy of articles instructing advertisers and brands to track only certain KPIs (key performance indica-tors)...and you might as well be in the Mariana Trench.

In digital advertising, there are three primary KPI catego-ries, and you can think of these as your goals. They include: Online Behavior, Offline Sales/Behavior, and Brand Impact. You can also measure for validation and verification, which we recommend for every campaign. Most of KPIs across these categories are applicable to Native, Display, Video, and Mobile advertising.

Navigating the waters of digital advertising measurement is especially tough when you’re unfamiliar with the tools at your disposal. This glossary will help you define some of the key KPIs you’ll use in your campaigns, but it’s up to you to map the right KPIs to your goals.

Imagine your brand as a ship, and your campaign goal as an island in the distance. To reach your destination you need more than a location in mind; you need wind in your sails. That’s what KPIs are—they are the driving force that can help you reach your goals, or send you in the wrong direction. What you have the power to do is set your sails.

When you map your KPIs to goals, you’re setting your sails against the strongest winds, giving you the most direct route to your destination. When you follow KPIs without a con-crete goal in mind, there’s no guarantee that the journey will be efficient, or that you’ll reach the place you had in mind for your brand at the end of the campaign.

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KPI GLOSSARYApp InstallsThis is a specific type of conversion — when a viewer down-

loads and installs your web or mobile app. This KPI is

particularly important on mobile, where app installs can help

you collect better data for audience targeting. See also:

Cost Per Acquisition.

Audience and Supply VerificationThis is particularly important when you’re buying inventory

programmatically. Because you’re paying based on the value

of each impression, you want to be confident that your ads

are viewed by the intended target. Your DSP partner should

make it easy to verify audience composition and viewability.

AwarenessThis KPI measures increases in awareness of your brand —

those who have and have not viewed your ad. This is typically

measured through a brand-effectiveness study.

ClicksWhen viewers click on any part of your ad. Typically a click

results in a redirect to another URL, and is counted when that

new URL is loaded.

Conversion

A conversion is counted any time a consumer completes a

desired action — this might be clicking on a link, signing

up for an email list, or even making a purchase.

CPA (Cost Per Acquisition)

The cost of an acquisition — the definition of “acquisition” will

vary dependent on your strategy. On mobile, acquisition

typically refers to downloading an app, or an in-app purchase.

CPM (Cost per one thousand impressions)CPM is the price an advertiser pays per 1,000 impressions of

its ad. When inventory is bought using RTB, or real-time-

bidding, inventory is automatically purchased on an individual

impression basis — which allows advertisers to determine

exactly what each consumer is worth.

CTR (Click-Thru Rate)The percentage of impressions in which a viewer clicks on

the ad. This is determined by dividing the number of clicks

by the number of impressions. If your ad was viewed by 1,000

people, and 100 of them clicked, your CTR would be 0.1%.

FavorabilityFavorability measures your audience’s overall opinion about

your brand. As with awareness, this is measured through a

study of consumers — exposed and not exposed to your ad.

In-Store TrafficIn-Store Traffic is the offline equivalent to Site Visitation —

the number of people who entered your store, regardless of

whether they make a purchase. You might also measure

the number of in-store visitors who made a purchase, in order

to calculate your In-Store Conversion Rate.

In-Target EfficiencyThis is the percentage of your ads which reached your target

audience. This metric is closely linked with Audience Verifi-

cation, as you’ll need to verify your audience before you can

calculate In-Target Efficiency.

The KPIs list below provides an easy reference for you when planning your campaigns, but that’s just the beginning. To learn more about determining KPIs for your campaign, read our free new eBook, “Mapping Your Metrics”.

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Offline Purchases/Offline SpendIf you’re measuring the offline impact of your ads, these KPIs

measure increases

in sales. Offline Purchases indicate the number of products

consumers buy

in-store, while Offline Spend indicates the number of dollars

consumers spend.

Purchase IntentPurchase intent measures the likelihood that your audience

will purchase your brand’s product or service, again using a

controlled group of exposed and not exposed consumers.

Reach/FrequencyReach measures the number of people exposed to your ad

at least once, while frequency refers to the number of times

each exposed person is reached. Your DSP should allow you

to set global frequency capping, specifying how often an ad

reaches an individual consumer.

RecommendationLikeliness to recommend is another key indicator of your

brand’s health. In fact, according to Nielsen, 92% of con-

sumers trust recommendations from friends and family over

all forms of advertising.

Repeat Purchase

Measuring repeat purchases can help you gauge customer

loyalty and retention, both online and offline.

Search LiftSearch lift measures the lift in searches for your brand among

consumers who’ve been exposed to your ads. This helps

advertisers evaluate whether your campaign is keeping your

brand top-of-mind.

Site VisitationThe volume of traffic to your brand’s website — this might be

your homepage, or to a specific page you’d like to increase

traffic — regardless of whether they make a purchase.

Supply VerificationTo ensure the quality of your inventory supply, advertisers

can target specific domains, subdomains, or apps. Your DSP

should also partner with third-party verification vendors to

ensure its supply is brand safe, viewable, and non-fraudulent.

Viewability LevelsWhile viewability standards are continually being revised, the

MRC (Media Ratings Council) defines an ad as viewable when

at least 50% of an ad’s pixels are in a viewable space for at

least one continuous second. Your DSP should offer indepen-

dent, third-party viewability measurement.

VTR (View-Thru Rate)The rate at which consumers view an ad, are cookied, and

then later complete a conversion. This allows advertisers to

see the impact of ads even when a consumer doesn’t imme-

diately convert.

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