Hello everyone,
We continue our so-called educational posts series. Today we're going to discuss statistics and the most popular metrics. Hope you'll enjoy it!
Statistics is the key to understand whether your ad campaigns are doing well and making profit. The sole amount of profit you're making is never enough as it shows only the part of the big picture. While the details and secrets that made it possible are hidden. That's why every webmaster must be familiar with the key metrics in the industry. The understanding of the metrics would help you to not only negotiate with your affiliate-managers but to discuss some topics within the affilaite community.
Let's break down the most common metrics in general and the iGaming industry related in particular.
We'll start from the very basic and will move forward to more complex. Keep in mind that the metrics can be expressed both as a percentage and as a numerical value.
CTR (Click-through Rate) indicates the frequency of clicks on an ad. It reflects the attractivenes of a particular ad to the targeted audience. Based on the numbers you can draw conclusion about the effectivenes of your ads and adjust them accordingly.
CTR = (total clicks / total impressions) ?100
CR (Conversion Rate) shows the ratio of the number of users who completed the targeted action to total clicks on the page. It reflects the effectiveness of the lower part of your marketing/sales funnel. Based on CR you can draw conclusions about the attractiveness of the landing page and its relevance.
CR = (total leads / total clicks) ?100
ROI (Return On Investment) indicates the ration of the profit received to the amount of the investments spent. The metric shows how well have you invested your money. F.e. if ROI less than 0 you're operating at a loss. If ROI is 0% you're just returning your investments without making profits. If ROI is 100% you're doubling your investments. In theory, there is no ceiling for ROI as some ad campaigns might reach up to 1000% or even more. Yet, it is so hard to achieve, even for a skillful and experienced webmasters. We'd suggest to focus on stable returns long-term rather than trying to go for the highest ceiling.
ROI = (total return on investement - volume of investments) / volume of investments ?100
CPC (Cost Per Click) indicates the cost of a click on an ad. Webmasters usually use the metric to measure the effectiveness of the top of the marketing/sales funnel. It is also used in some advertising networks which work with PPC (Pay-per-Click) model. It is not an indicator, it's a commission model. Don't be confused with them.
CPC = total amount of investments / total clicks
CPA (Cost per Action) indicates the cost of a targeted action (usually it meaning a new lead). The metric allows you to determine the cost of a new lead and evaluate the quality of the flow. CPA has another meaning just as CPC. There is a commission model named CPA which pays for every targeted action made (we've already covered all the commission models above in the thread).
CPA = total amount of investments/ total targeted actions
We've probably done with the most common and the most basic metrics. Let's switch to the specific metrics for the iGaming industry. They're used when the targeted action is FTD (First Time Deposit) with a CPA commission model.
Click2Reg (Click to Registration) indicates newly registered users. It reflects the compliance of the traffic's expectations from ad campaigns with the attractiveness of the promoted product or service.
Click2Reg = total number of new users / total clicks ?100
Reg2Dep (Registration to Deposit) indicates new users who have made a deposit. It helps you evaluate the quality of the leads.
Reg2Dep = total number of users who made a deposit / total number of new users ?100
Inst2Reg (Installation to Deposit) indicates the registrations after downloading of an app.
Inst2Reg = total number of new users / total number of those who downloaded an app ?100
The latter three are usually taken into consideration while your traffic is evaluated (we also have the post on traffic's evaluation).
Is is really so important?
Yes, it is. It is more than just important, it is essential. There are so many variables while driving traffic which can frighten a new webmaster. You have to learn how to master them and analyze them correctly so you can draw conclusions about the effectiveness of your performance based not on intuition but on facts.
There are way more metrics and indicators than we've mentioned in the post but there are so many that you'd probably would have never use or even heard of. That's why we put the focus on the basics and the iGaming related metrics.
A piece of advice from Royal Partners. Don't get too attached to the numbers and the statistics, don't get drown in it. Keep focused on driving high quality traffic and let the metrics remain as a tool that helps you analyse the performance.
Besides, all our partners have the tools to see the statistics as transparent as possible within their accounts. We value transparency and mutual profit. If these two are your values you can become our partner and get access to our In-House offers with transparent statistics and a personal affiliate-manager.
Best,
Royal Partners