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Information Technology · Ch 2 — Digital Marketing

Digital Marketing Tools and Metrics

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Digital Marketing Tools and Metrics

Tools that make digital marketing work

Digital marketing relies on software tools to plan, run, and study campaigns. Because it is unfair to endorse particular commercial products, the important categories of tool are described here generically — a business chooses specific products within each category to suit its needs.

Category of toolWhat it helps a business do
Website builders / content management systemsCreate and update a website or online store without deep programming.
Web analytics toolsMeasure how many people visit a website, where they come from, and what they do there.
Search / keyword research toolsFind the words customers search for and check how a site ranks.
Social media management toolsSchedule posts, manage several accounts, and study engagement.
Email marketing toolsBuild mailing lists, design and send campaigns, automate messages, and track opens and clicks.
Advertising / campaign platformsCreate, target, and manage paid online advertisements and control the budget.
Design and content toolsProduce images, videos, and graphics for posts and advertisements.
Customer Relationship Management (CRM) toolsStore customer information and track interactions to build relationships.

These tools automate routine work, help target the right people, and — most importantly — measure results, which is the heart of digital marketing.

Metrics — measuring success

A metric is a number that measures some part of a campaign's performance. Metrics turn vague hopes ('the campaign is going well') into facts ('500 people clicked and 20 bought'), so a business can see clearly what works and improve. Some key metrics every student should know:

  • Impressions — the number of times an advertisement or post was shown to people (whether or not they acted on it).
  • Reach — the number of distinct people who saw the content (the same person seen twice counts once).
  • Clicks — the number of times people clicked a link, advertisement, or button.
  • Click-Through Rate (CTR) — the percentage of people who clicked out of those who saw it. It shows how appealing a message is. It is found by dividing clicks by impressions and expressing the result as a percentage.
  • Conversion — a desired action being completed, such as a purchase, a sign-up, or a form filled in.
  • Conversion Rate — the percentage of visitors who convert, out of all who visited or clicked. It shows how effective a page or campaign is at persuading.
  • Bounce Rate — the percentage of visitors who leave a website after viewing only one page without any further action. A high bounce rate often signals that the page did not meet the visitor's need.
  • Cost Per Click (CPC) — the average amount paid for each click in a paid campaign.
  • Return on Investment (ROI) — how much value or profit a campaign earned compared with what was spent on it; the ultimate test of whether the marketing was worthwhile.
  • Engagement — how much the audience interacts, measured through likes, comments, shares, and time spent.

A simple illustration …

Definition 1Metric

A number that measures some part of a marketing campaign's performance, such as clicks, conversions, or re …

Definition 2Click-Through Rate (CTR)

The percentage of people who clicked out of those who saw the advertisement or post; found by dividing clicks by impressions and expres …

Definition 3Conversion rate

The percentage of visitors or clickers who complete a desired action, such as a purch …

Definition 4Return on Investment (ROI)

A measure of the value or profit gained from a campaign compared with the amount spent on it; the ultimate test o …

Definition 5Web analytics

The measurement and study of website data — how many people visit, where they come from, and what they do — used to judge …