November 12, 2025

How to Know if Your Digital Advertising is Working?

How to Know if Your Digital Advertising is Working?

Blog post cover with the title ‘How to Tell if Your Advertising Works’, featuring illustrations of ads, growth charts, and a person thinking, representing the analysis of advertising campaign performance.
Blog post cover with the title ‘How to Tell if Your Advertising Works’, featuring illustrations of ads, growth charts, and a person thinking, representing the analysis of advertising campaign performance.

You invest in advertising. You see some likes coming in, maybe some clicks…
But you're not sure if that means real sales.

And you wonder:

“Am I wasting money or is it actually working?”

Today I'm going to show you the 3 key metrics that every business owner should review to know if their campaign is generating results or simply losing money.

You're investing, but you don't know if there's a return

Many businesses in Panama are investing in Google Ads, Meta Ads, or social media without knowing if that investment is bringing real customers.

Has this happened to you?

  • You run campaigns, but no one explains the metrics to you.

  • They give you reports full of jargon that you don't understand.

  • You only see numbers… but you don't know if that represents sales.

And that leaves you with an uncomfortable feeling:
“Are they pulling my leg?”

Without clear metrics, you're in the dark (and at risk)

Digital advertising can give you customers, but if you don't understand what you're seeing, you can make serious mistakes:

  • Thinking the campaign works because there are many likes

  • Believing a campaign is useless because no one comments

  • Investing more money without knowing what to improve

And that's when you lose money, opportunities… and patience.

That's why, as a marketing agency for local businesses, at Fresa Marketing we always teach our clients the metrics that really matter.

These are the 3 metrics you must review (no exceptions)

1. CTR (Click Through Rate)

CTR (Click Through Rate) tells you how many people click on your ad after seeing it.

Why is it important?
Because if your ad appears but no one clicks, you're losing visibility and money.

Example:

  • If 1,000 people see your ad and 80 click → CTR = 8%

  • If only 10 click → CTR = 1%

A good CTR for local businesses is around 6.66%, according to WordStream data.

If you're below 3%, it’s probably because:

  • The ad is not clear

  • You're not using the right keyword

  • You're not reaching the ideal audience

2. CPC (Cost Per Click)

CPC (Cost Per Click) indicates how much you're paying each time someone clicks on your ad.

Why does it matter?
Because it tells you how efficient your investment is.

Example:

  • If you spend $100 and receive 50 clicks → CPC = $2.00

  • If you spend $100 and receive 100 clicks → CPC = $1.00

A healthy CPC depends on the industry. But in Panama, local businesses tend to pay between $0.80 and $2.50 per click on Google Ads, depending on the sector.

The lower your CPC (without sacrificing quality), the better your budget performs.

3. Conversion Rate

This is the most important metric.

It tells you how many of those who clicked ended up taking a real action: call, form, appointment, or purchase.

Example:

  • 100 people click → 5 make an appointment = 5% conversion

  • 100 clicks → 0 contacts = campaign in trouble

A good conversion rate for local businesses is 3% to 10%.

And if you have a mobile-optimized site, visible contact buttons, and a clear offer, you can even reach 15% or more.

Summary Table: Key Metrics and Recommended Values

Metric

What It Measures

Healthy Value

CTR (Click Through Rate)

How attractive your ad is

5% – 10%

CPC (Cost Per Click)

How much you pay per click

$0.80 – $2.50

Conversion (%)

How many clicks convert into an action

3% – 10%+

BONUS: Who Shows You This Data?

If you work with an agency (like Fresa Marketing), demand to see these 3 metrics every month.

Don't settle for reports that only show “reach” or “likes.”

You're investing to generate sales.
So you need to know:

  • How many people saw the ad?

  • How many clicks were made?

  • How many converted into customers?

Everything else is just noise.

Conclusion

If you're not reviewing these 3 metrics, you're advertising blindly.

And advertising without data is like driving without GPS.

Would you like to have campaigns that truly convert into sales and not just views?

Contact us today at Fresa Marketing and let's start optimizing your investment to attract more clients with real data and measurable results.

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Fresa Marketing

The simple works better.

Built for local brick and mortar businesses.

Privacy Policies

Terms and Conditions

© 2026 Fresa Marketing. All rights reserved.

Fresa Marketing

The simple works better.

Built for local brick and mortar businesses.

Privacy Policies

Terms and Conditions

© 2026 Fresa Marketing. All rights reserved.