INSTANT RETURN ON INVESTMENT

Once you hire a digital marketing agency for paid ads, here are a few key metrics that you can closely monitor to keep a tabs on agency’s performance:

1. ROAS
2. Cost Per Acquisition
3. MoM | QoQ | YoY Growth Rate
4. Customer Lifetime Value
5. Lead to Sales Conversion Rate
6. Traffic to Leads Conversion Rate
7. MRR & ARR (SaaS Business)
8. Net Profit

It completely depends on how much time it has been since your new agency has started working on your project but it is always good to share goals so that from the very start agencies can start working towards your intended business goal.

There are certain key metrics listed above that you can check on a weekly or monthly basis with your agency in order to make sure that you are on the right track.

ROAS: Return on ad spends: This will help you understand how much direct return are you getting from your ads, it tells the effectiveness of the ads that your agency is running for you and can help differentiate or compare performances of two different ad campaigns.

Cost Per Acquisition: These metrics help you understand the cost you are incurring for acquiring a sale, this is really helpful to know if you have low margins on the product/service you are offering and you want to make sure every sale is profitable. If your agency is not able to keep this under a certain limit you can always ask them the strategy they are following.

MoM | QoQ | YoY Growth Rate: Very important to know if your business is growing with time or not and is a clear performance indicator of your Agency, if you are not seeing consistent growth coming in you can always ask for these metrics and understand why the agency is not able to meet the expectations.

Customer Lifetime Value: Very important metric again and for businesses where cost per acquisition is too high you ought to consider this metric as this is what is going to make you look profitable in long run, this also shows that the results that agency is bringing is targeting the right audience segment who are willing to pay for your services multiple times.

Traffic to Leads Conversion Rate & Lead to Sales Conversion Rate: These conversion rates vary company by company and industry by industry but are significantly important to keep a check on effectiveness of the campaigns, if either of them is low, it suggests that there is something wrong somewhere.

MRR & ARR (SaaS Business): Monthly Recurring Revenue and Annual Recurring Revenue are the key metrics for any SaaS business and can be used to measure performance of your agency also, it tells you if your campaigns are targeting the right users and bringing in leads that are real users of your product or service.

Net Profit: Finally the metric of all metrics, net profit, this cannot be a direct measure for your agency performance but overall for a business to survive and grow this is the ultimate goal, if you are not in profit you should consider getting back to the drawing board with your agency and make required corrections.

We at Authentic Imaging take data driven decisions and have advanced reporting and custom dashboards set for all our client needs. We proactively let our clients know of a considerable flaw in the campaign strategy or business offerings and prevent business from incurring any loss. Our Google Ads management services offers a comprehensive package with timely reporting on all the key metrics relevant to your business.