What is a Key Performance Indicator?

What is a Key Performance Indicator?

KPIs (Key Indicator Performance) are the quantitative indicators used to measure performance.KPIs, or Key Performance Indicators, are necessary to assess the real situation of a media campaign, and therefore its performance over a given period.

These strategic components need to be precisely determined upstream of the campaign, so as to ensure the best possible visibility of the actions carried out and their impact during the broadcast, and ultimately to deduce the return on investment.

The first step is to determine the objectives to be met by the campaign:

• Awareness
• Engagement
• Conversion

What is my goal?

• Awareness : promote a brand, service or product.
• Engagement : ensure that people not only want to know more about a product, service or brand, but also interact with it.
• Conversion : encourage people to buy or use a product or service.

Once you've isolated your objective, you'll be presented with a very short list of KPIs. Let's now take a look at which indicators are involved, how they are defined, and how they are calculated.

Awareness

• REACH: refers to the reach of a publication or advertising campaign to an audience, particularly on social networks. It's important to note that reach calculation methods may differ from one platform to another..
• COST PER THOUSAND (impressions) or CPM : This type of auction pays per thousand impressions (displays).
  Calculation method: Media budget / Total number of impressions x1000.
• COST PER VIEW or CPV: The methods for counting views differ from one delivery platform to another, but for example, a view is taken into account when an Internet user interacts with your video ad or views it for at least 3 seconds. In practice, this involves setting CPV bids, indicating the maximum amount you're willing to pay for each playback of your video.
  Calculation method: Media budget / Total number of views.
• VIEWABLE COST PER THOUSAND IMPRESSIONS or VCPM: this variant calculates the number of ads seen with certainty.
  Calculation method: Media budget / (total number of impressions x % of visible impressions) / 1000.
• COMPLETION RATE: This indicator corresponds to the proportion of people exposed who have viewed an ad to its end - in this case, a video.
  Calculation method: (Number of people viewing content / Number of people exposed to this publication) x100.

Engagement

• COST PER ENGAGEMENT or CPE: engagement occurs when a user engages with an ad. For example, when they watch a video ad.
  Calculation method: Media budget / Total number of people involved.
• COÛT PER FAN or CPF: this metric represents the volume of investment required to acquire a fan on a social network.
  Calculation method: Media budget / Total number of fans obtained.
• COST PER CLICK or CPC: this is the amount spent to obtain a click on your ad.
  Calculation method: Media budget / Total number of clicks.
• CLICK THROUGH RATE : This indicator, expressed as a percentage, shows how often people who see your ad or free product sheet click on it.
  Calculation method: (Clicks / Impressions) x100

Conversion

• COST PER INSTALLATION or CPI : an indicator particularly used in a mobile and tablet context, which represents the real cost of acquiring an active user.
  Calculation method: Media budget / Total number of installations.
• COST PER ACTION or CPA : corresponds to an action on a landing page, in other words, a conversion. This conversion may correspond to the purchase of a product, the printing of a page, a registration or any other type of action.
  Calculation method: Media budget / total number of conversions.

“I know that half of my advertising budget is useless, but unfortunately I don't know which half.”