In the fast-paced world of online marketing, constant measurings through different KPIs are essential to let us know what is working and what isn’t in our digital marketing strategies.
Therefore, the right use of Key Performance Indicators (KPIs) is crucial. Diego Rayón, Biddeo’s CCMO, tells us that, by leveraging specific KPIs, you can gain valuable insights into the performance of your online marketing campaigns. So let’s dive into the KPIs the Biddeo team considers vital to evaluate a video campaign’s performance!
Impressions & CPM
When measuring performance, it’s all about views. But not only do we want to know the number of times users watch a video, we also want to know the “quality” of those views: how long do they watch it for, do they interact with it, when do they interact, etc.
To give us part of that information, we have to start with impressions: the number of times a campaign appears in a user’s timeline, it tells us how many people the campaign is reaching, how many people it is visible to.
The number of impressions is important to determine the CPM, the cost per thousand impressions, which is how much an advertiser pays for a thousand impressions of their ad.
“When a campaign focuses on impressions [typically branding campaigns], the objective is to achieve maximum coverage. In other words, the priority is for the ad to reach as many people as possible, regardless of whether they watch or not the complete ad”, explained Diego. He highlighted that, currently, Biddeo’s technology can lead to a 600% reach increase.
VTR & CPV
Sometimes, however, reach isn’t as important as the quality of the views the campaign is receiving. To measure quality, Biddeo uses the view-through rate (VTR): a KPI that indicates the percentage of people who have chosen not to skip your video ad, watching it throughout its duration, which can vary depending on the platform (while Google’s default view duration is 30 seconds of an ad, Twitter’s is 15 seconds). This KPI attests directly to an ad’s effectiveness.
Just like impressions are used to calculate CPM, VTR is used to calculate CPV: the cost per each view that reaches the default view duration. That is, how much advertisers pay for actual quality views of their ad.
The higher the VTR, the cheaper the CPV will be – which is an advertiser’s main goal -, since this pricing model is calculated by dividing a campaign’s total cost or budget, by the VTR.
At Biddeo, the average VTR percentage of the video campaigns managed is 70%, which means “we are successful at impacting audiences that are truly interested in our advertisers’ ads, ensuring the lowest CPVs”, added the CCMO.
Constantly monitoring and fine-tuning campaigns based on the right KPIs, according to your goals, leads to meaningful results, conversions, and brand loyalty.
If that’s something you’re interested in, then learn more about Biddeo by checking their website here. Also, don’t forget to follow them on social media.
