How do I measure an Ad’s effectiveness?

The key performance indicators for product description in e-commerce are sales. Sales are the entire name of the game. You don’t list products for sale to get exercise, you don’t list products on your website to see how many items you can list, it’s not a contest after all. You list product on your e-Commerce platform to sell merchandise, and then to make a profit.

There should be 2 main areas to use KPI. To use KPI you need to do research and testing.

  1. You need to make sure your marketing efforts are driving targeted traffic to your items. Use A/B testing by inserting unique promotion codes on various types of advertising efforts. General traffic and website hits are great, but targeted traffic from potential customers pays the bills. If you pay for advertising, you better be sure you are measuring the ad performance to make sure you are getting your money’s worth.
  2. Make sure your advertising is actually selling the product, not just listing it. Look at selling platforms like Amazon and eBay. You see item after item using exactly the same selling copy and photos to list their items. Who gets the sale? Often the guy that is placed at the top of the pack by Amazon’s listing algorithm, or by the guy that is a nickel cheaper. Amazon even makes it easier by writing the ad for you if you have a UPC number. Write your own, unique ad copy using features and benefits, and how the product will help your customer solve a problem, make a task easier, or some other benefit. Use unique photos to make your ad look different than everyone else’s. Measure different ad performance by assigning unique product numbers to each ad you test. Track hits and sales per hit for each unique ad.

Measure your paid ads, using clicks per ad, and sales per click . Utilize various ad copy approaches to test effectiveness. Next, measure individual ad performance using A/B Testing of ad copy A versus ad copy B techniques. This should be enough for most small e-commerce sellers. If you grow and use different marketing approaches like direct email, etc, of course, other tests should be done to measure effectiveness.


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