CPR Digital Marketing: Know the Effectiveness of Your Ads
CPR digital marketing, or Cost Per Rating Point, is one of the most used terms in digital marketing and advertising; it allows us to understand the effectiveness of campaigns in Google AdWords, Facebook ads, or other media.
This term is often used in conjunction with other terms like CTR, CPM, CPC, etc. which is used to describe the rate at which many publishers or websites sell their ad space in digital format.
The 3 most important indicators of CPR digital marketing are:
- Click: Recorded when a user clicks on one of the ads.
- Impressions: Metrics recorded when a user views an ad. If the ad has been shown 100 times, the campaign has reached 100 impressions.
- Conversions: These are all the activities on a website that are important to advertisers.
CPR Digital Marketing and Advertising
CPR digital marketing is an acronym that stands for Cost Per Rating Point. To understand this term, you must first know what a rating is.
Ratings are a percentage of the universe’s audience (one rating point equals 1% of the universe). In other words, it refers to the percentage of people who have seen a program over the total number of people who have access to television.
To estimate a show’s ratings, divide the number of viewers of the show by the total number of people likely to watch TV and multiply it by 100.
Therefore, CRP is the cost for the media to reach 1 rating point.
Other Advertising Terms
Some basic concepts of media planning and audience measurement are:
- Target audience: people to whom the advertising message is directed or reached.
- Useful target group: It is part of the total target group that is part of the target group defined for the campaign.
- Average audience: refers to the average number of people that make up the audience of a program or channel during a given period of time. It is calculated by counting the number of viewers of the program per minute and dividing it by the number of minutes.
- Cumulative audience: the number of people who are constant audiences of that media channel over time.
- Total audience: It is the sum of the audience of two or more media channels or two or more broadcasts of the same message. For example, the total number of viewers for a television commercial is the sum of the viewers for all its shows.
- Duplicate viewers: Refers to viewers who have seen the advertising information twice, or viewers of two different media, these people will be counted twice (duplication).
- Net Audience: Subtract duplicate viewers from total viewers. This allows you to use different media channel combinations so duplicate viewers do not alter CPR results.
- Exposure: This is the exposure or impact that people get from a particular communication, regardless of their level of attention.
CPR Digital Marketing on Facebook
CPR digital marketing depends on the type of campaign chosen for your ad. If we consider a campaign where the objectives are «messages» and «number of conversations started», the cost of each result will determine the cost of the action/transition itself.
CPR digital marketing is calculated by dividing the total amount spent by the number of results (total number of conversions).
The idea is that your campaign will generate a bid for a relatively low score or within your budget to determine if your campaign is successful.
The number of visits is almost always inversely proportional to its cost. Therefore, the higher the number of results, the lower the cost per result, and vice versa, the lower the number of results, the higher the cost.
CPR digital marketing is one of the most important metrics to analyze Facebook ads because it tells you how profitable your campaign is and whether you are achieving positive ROI. Additionally, you can use it to compare the effectiveness of different campaigns, to identify opportunities, and determine the budget you can put into future ad groups.
Facebook Reach Metrics
Reach is the number of people or users your ad reaches in a given period of time. In other words, it means the number of people who reached your message.
Another way to look at it is SERP impressions of your site, but not visits. Scope only provides a small amount of information that doesn’t translate into conversions.
Just because an ad has reached multiple people doesn’t mean the content is relevant or that the content itself is liked. Reach converts impressions, but beyond that, it doesn’t tell you if it’s relevant to your audience.
But despite this, doesn’t it seem contradictory to say that this is one of the most important metrics to analyze on Facebook? Why is this indicator important? Because it allows you to compare the organic or paid reach and see which one generates more conversions.
Organic Reach on Facebook
Facebook defines organic reach as the number of people who see your page’s unpaid posts on their screen.
Paid reach can be higher than organic reach depending on how far you want to go with your posts, but you may be surprised at how successful your content marketing is compared to paid reach.
On the other hand, be very careful not to confuse the two types of reach: post reach and page reach.
By tailoring your ad to your goals, you can increase the reach of each type. Page reach is the number of people viewing any type of content on your page at any given time (daily, weekly, or monthly).
These reach metrics can be misleading if not interpreted correctly. You can achieve high reach per post, but if you post infrequently, page-level reach will be low, so tracking is important, even if it’s not the most relevant analytics metric for many advertisers.
Facebook Advertising Campaigns and CPR Digital Marketing
CPR digital marketing is a measure of awareness. It represents the cost of achieving the results we want at the operational level. If we choose to participate, it will be the cost of interacting with the ad. Besides, if we choose to chat on Facebook Messenger, it costs a conversation, etc. If our budget is $400, and we hit our goal 50 times (in this example, five Messenger conversations), the CPR is $8.
CTR represents the number of clicks, which is the division between the number of clicks and the number of impressions the ad receives. For Facebook, CTR is generally not used unless you want to measure people’s interest in an ad. It counts not just likes and others, but all types of clicks.
Relevance Rate indicates how relevant the ad is to our chosen target group. A low CPR is often accompanied by a high relevance rate. This score goes from 1 to 10 (10 being the best number, the highest correlation).
Results is the number of times the selected activity level goal has been met. If our goal is to get some kind of lead and we get 60 of them throughout the campaign, this is our result.
Each case will be different, but usually the CPR digital marketing and the relevance score are enough to choose the winning ad.
You can find more information about different tools and ways of measuring the effectiveness of your advertising campaigns on our site Noticias Diarias 24