“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

— John Wanamaker

The above quote represents one of the most common dilemmas with online advertising. Most online business owners don’t have a clue whether their digital display advertising campaign have been effective in terms of return on investment. They do not know how to measure effectiveness of the online display ads in attracting sufficient online visitors that justify the investment.

The importance of measuring effectiveness of the online digital ads cannot be emphasized enough. The obvious reason that you must measure the effectiveness of the online ad is to not only justify the investment, but also to adjust the advertisement strategy to ensure maximum generation of online traffic. Below are some tips on how to measure effectiveness of the online display ad.

1. Analyze Network Ad Report

The most obvious way to measure the effectives of the ad is through the ad report provided by the advertising network. For instance, in Google AdWords report shows the number of visitors that have clicked the ads and the conversion rate of the ads. Similar report is provided by other network platforms such as LinkedIn, Facebook, Twitter, Bing, and Yahoo! display advertising networks.

Using the reports you can measure instant updates about each keywords included in the advertising campaign. You can then adjust the ads either by increasing the bid amount, changing the advertised texts, or including additional keywords.

2. Track Your Website

Another way to measure effectiveness of the online ads is by installing a website tracking plug-in. Some website hosting companies provide basic tracking plug-in, but in most cases the information is not enough to get detailed information about the inbound traffic. You have to install a third party plug-ins to get detailed information about inbound traffic.

The tracking programs contain detailed reports that provide complete history of inbound traffic. You can find out about the number of online visitors that have visited the site, amount of time spent by the users on the site, and most importantly the source of the traffic. The traffic source will tell you how many visitors arrived at your site by clicking on the ad. You can then calculate whether amount invested in the display ad justify increase in the online traffic.

3. Look at Website Metrics

Metrics such as ROI, conversion rate, and click through rate provide helpful information about the display ads. You must look at these web metrics to determine the effectiveness of the online display ad. ROI refers to return on investment, conversion rate refers to the percentage of online traffic generated by the ad that purchased a product, while the click through rate is the number of people that clicked the display advertisement link. An expert web developer can develop and install the codes to measure these metrics.

On a final note, you can easily determine the effectiveness of the online ad by following the advice listed above. For online businesses, ADVERTLY offers bespoke display ad packages at affordable rates.