Online content production needs to have a purpose. To follow the evolution of the goal, it is necessary to analyze the digital marketing metrics of your real estate business. This article shows the basic and critical marketing metrics. We will also give tips on how to measure them and what to do to improve results. Check it out!
What are digital marketing metrics?
In general, digital marketing metrics can be defined as indicators that allow you to analyze the performance – that is, the results – of marketing campaigns, whether organic traffic or paid traffic. This analysis is essential for companies in all segments, including real estate.
Digital marketing metrics are broken down and subdivided into several categories. Therefore, it is important to emphasize that each action requires a unique analysis. By analyzing the data, it is possible to understand which actions and which channels brought the most return. This helps with upcoming campaigns, which won’t be a blind bet, as was the case with offline marketing.
Given such relevance, it is essential that real estate marketers know how to choose metrics and also how to analyze them correctly. It is also worth noting that results can be measured at the beginning, during, and at the end of an advertising campaign.
This is yet another differentiator – and advantage – of digital marketing compared to offline marketing. When making a flyer or advertising on a TV station, the company cannot simply change its strategy throughout the campaign. On the other hand, with digital marketing, it is possible to analyze the results of actions in real-time and, if the data is not satisfactory, it is possible to change the entire strategy without much effort.
The monitoring of metrics must also be carried out jointly. This means that analyzing them in isolation may not bring the positive results expected by the real estate company.
How does digital marketing metrics play in evaluating the effectiveness of an ad campaign. Learn more about that in our this guide on social media advertising for realtors.
Here are some must-have terms, with definitions and examples you can use to create a high-impact portfolio of custom marketing metrics for future campaigns:
1. CPL (Cost per Lead)
The main objective of some digital marketing actions is lead generation. With the CPL metric, it is possible to determine the amount that was invested to generate a lead. The cost of each lead raised can vary by campaign, company, and many other factors. Therefore, it is necessary to analyze whether the investment to generate a lead brings a good return or not.
Calculating the CPL is very simple. Just apply the following formula:
CPL = Marketing Investment / Number of Leads
Assume, for example, that the cost per lead of a real estate advertising campaign is low. However, the leads generated are not interested in buying or renting the properties. In this case, even though the investment is low, it does not bring a return.
On the other hand, it is possible that your cost per lead is high, but, unlike the example above, potential customers are qualified and the average ticket of negotiations is high. Thus, it is necessary to emphasize that a low CPL is not always positive, just as a high CPL is not always negative.
2. CAC (Customer Acquisition Cost)
CAC is the amount the company spends in order to make a sale. To find the value of CAC, it is necessary to add up all the investments made in marketing during a given period and then divide the total by the number of customers who closed business with the company in the same period of time.
In real estate, it is common for marketing and sales departments to work together to verify that the investments made are bringing the expected returns. It is precisely in this aspect that it is necessary to calculate the CAC.
It is ideal to check the value of the CAC every month, so that, in the following month, you can continue or change the marketing and/or sales strategy being used.
3. Return on ad spend (ROAS)
ROAS is the digital marketing metric that allows you to check how many results a given amount of money invested in campaigns will bring to the company.
It is ROAS that allows you to see if the content placement channel – such as social networks, a blog, and a website – is paying its own investments and, in addition, bringing positive financial results.
To measure ROAS, it is necessary to track the number of conversions of a given campaign and, subsequently, how many of these leads became customers and, also, the amount of profit they brought to the business.
4. LTV (Life Time Value)
We need to highlight LTV as one of the main digital marketing metrics for real estate companies.
LTV, in general, is the indicator that shows the return that the consumer brought to the company during the entire period in which they had a relationship with the brand – which can last for months or years.
To calculate the LTV value, it is necessary to divide the average ticket of all sales in the analyzed period by the number of purchases made by a given customer. In the analysis, it is necessary to consider that the higher the LTV, the better.
In the real estate market, LTV is often not analyzed as it should be. Therefore, tracking this metric can show you data and direct strategies that your competitors will not have the opportunity to verify.
5. CPM (Cost Per Thousand)
CPM indicates the amount invested in a particular campaign for the ad to appear to 1,000 people.
This metric is important for the marketing department to verify the results of their campaigns, especially if the objective is to reach a certain number of online users.
6. Click-through rate (CTR)
The click-through rate is the number of times an ad, link, or website is clicked compared to the number of impressions.
High click-through rates (about 4%) mean the copy displayed is persuasive and well placed.
Once a user has clicked, however, the rest of their experience should align with their expectations of taking the action in the first place.
How to measure: Paid ad platforms like Facebook offer this data for free within the platform.
7. Reach or number of visitors
Reach is a simple metric, which can be verified on the ad platforms themselves, such as Facebook Ads, Google Ads, and Instagram Ads. It is through reach that it is possible to verify how many people had contact, in some way, with the ad served.
Generally speaking, you can define reach as the number of unique users who have viewed the content. In this way, the metric differs from impressions, which is the number of times the ad was shown.
8. CPC (Cost per Click)
CPC (Cost Per Click) is one of the main digital marketing metrics when it comes to paid traffic. As its name suggests, it is the indicator that shows the amount needed to generate a click on the ad served.
The metric is important to verify the attractiveness of the ads and, above all, which versions and which platforms bring the most results in lead generation.
We hope that this content has helped you understand the importance of tracking marketing metrics so that you have an increasingly coherent strategy for the goals of your real estate business! If you are a real estate agent or broker, you need to get to know Allready.ai! A SaaS platform that produces automated SEO-optimized content for realtors.