KPI

Publication date: 20 May 2024

What is the KPI in media buying?

KPIs (Key Performance Indicator) are key performance indicators that are used in media buying to measure campaign performance and goal achievement. KPIs are important in determining the campaign’s success or failure and allow you to make informed decisions to improve results.

KPIs on Offers and the reasons for their necessity

Offer KPIs are metrics that are set up by offer owners to monitor the quality and performance of webmasters. They help determine how successful a media buyer is at driving traffic and generating conversions. KPIs on offers also allow the owners of offers to assess the profitability of cooperation with particular webmasters.

For example, in the betting and gambling verticals, the conversion point is the first top-up, also known as the FTD (First Time Deposit). The FTD is an important requirement for leads to be counted and traffic to be paid for. If this step is not met, the results will not be counted. The key performance indicator (KPI) is either a second deposit within XX days of the first, or reaching the baseline, a certain amount after which a player is considered active, or meeting the turnover requirements.

KPIs should be realistically achievable, not arbitrarily set. In our work, we often come across situations where an advertiser sets unrealistic KPIs for an offer, making it unattractive to potential affiliates. Despite the attractiveness and effectiveness of the product, the offer proves irrelevant due to an unrealistic traffic evaluation system.

 

The key KPIs:

Monitoring Key Performance Indicators (KPIs) is an indispensable tool for evaluating the performance of adverts and gaining additional information about the target audience.

• ROAS (Return on Ad Spend) – the percentage of spend to revenue from an advertising campaign. A figure above 100% indicates a successful campaign.
• ARP U (Average revenue per user) determines how much money each user brings in over a certain period. Use it to evaluate the effectiveness of price changes.
• Churn Rate (bounce rate) is important for businesses that rely on loyal customers. A high churn rate can indicate problems with your product, sales funnel, or pricing strategy.

The choice of metrics to collect depends on the quality and functionality of the tracker used, but also still on the internal performance evaluation of each project. Choosing a tracking platform that provides all the necessary data with an intuitive and user-friendly interface is extremely essential.

There are many trackers to choose from, in the PROMO CODES section you can get bonuses for using tracker services.

Advantages and disadvantages

The advantage of using KPIs is the ability to measure the effectiveness of an advertising campaign, which allows you to optimize and achieve better results. Furthermore, the KPI system helps to detect and prevent fraud.

The disadvantage, however, is that if the KPIs are set unrealistically at the outset, unrealistic goals may be missed.

KPIs in media buying: why are they important?

The KPI in media buying is an important tool for monitoring and evaluating campaign performance. It allows webmasters and advertisers to determine how successful they are in achieving their goals and ensuring business profitability. Without KPIs, it is challenging to evaluate performance and take action to improve it.