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Assessing marketing communications effectiveness

A campaign will not be successful if it meets its objectives of acquiring site visitors and cus-

tomers but the cost of achieving this is too high. This constraint is usually imposed simply by 

having a campaign budget. However, it is also essential to have specific objectives for the cost 

of getting the visitor to the site using different 

referrers

 combined with the cost of achieving 

the outcomes during their visit. This is stated as the 

cost per acquisition (CPA)

 (sometimes 

cost per action). Depending on context and market of a site, CPA may refer to different out-

comes – the acquisition of a visitor, a lead or a sale.

To control costs, it is important for managers to define a target 

allowable cost per acqui‑

sition

 such as £30 for generating a business lead or £50 for achieving sign-up to a credit card.

Figure 9.7 shows the full range of measures used by digital marketers to control commu-

nications expenditure from least sophisticated to more sophisticated. To help remember, the 

key measures use the VQVC mnemonic which stands for Volume, Quality, Value and Cost 

of interactions such as website visits or social media interactions. Common measures used to 

assess digital media include.

Referrer

The source of a website 

visit, e.g. paid search, 

affiliate marketing, online 

advertising or recorded as 

‘no referrer’, i.e. when a 

URL is typed in directly.

Cost per acquisition 

(CPA)

The cost of acquiring 

a new customer. 

Typically limited to the 

communications cost and 

refers to cost per sale for 

new customers.

Allowable cost per 

acquisition

A target maximum cost 

for generating leads or 

new customers profitably.

Figure 9.7

Measures used for setting campaign objectives or assessing campaign 

success increasing in sophistication from bottom to top

Volume = Unique visitors /

Reach (%)

Quality = Conversion and bounce rate

Cost = Cost per click (CPC)

Cost per acquisition (CPA)

Campaign ROI (%)

Branding metrics

Lifetime value

Step 0

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

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