PPC campaign are essential for drawing value-leads to your business. But it doesn’t end there. You also need to devote ample time and resources for tracking its performance over a prolonged time.
PPC campaign in another one of your marketing initiatives. You need to make sure that you are maximizing your ROI or Return on Investment and that your marketing goals are being met.
So just like any other marketing initiative, you have to remove excess info and focus on the Key Performance Indicators (KPIs) that add true value to the performance analysis of the campaign.
Here are 8 of the most essential KPIs for measuring the metrics for assessing your PPC campaign. Take a look.
Impressions and Clicks
The first and most essential metric to concentrate on are impressions and clicks. Now clicks are the number of times the ads that are displayed are clicked on, impressions are simply the number of times the ads are displayed. These are imperative as with Pay Per Click Advertisings you have to pay for every click on the ad. Through this you will know how you are paying for each click and thus how much you are achieving through each click. This naturally is going to help you to understand the effective bid strategies. If the clicks and impressions decrease then you can look for the issue in the ad. Again if this increases you can enhance the budget.
Click through Rate is the measure of how frequently the ads are being displayed vs. how frequently the ads are clicked on (clicks and impressions). So if your ads are clicked on 500 times and shown a 1000 times, then 50% is the CTR. This CTR can vary through the day, week and month. CTR also witnesses substantial alterations in a week versus the weekend. One can evaluate the ad level and keyword level and must not be compared anymore than once or twice every month. If you focus on the meticulous alterations in CTR, it can derail even the soundest strategy of marketing.
On the basis of the past CTR of the keyword, Google issues a number which is known as the quality score. Google uses the quality score to decide the rank of the ads and ensure that the highest positives going to the ads that are most relevant. A score that is high-quality implies that your landing page and keywords are relevant to the person going through it.
Cost Per Click (CPC)
Usually, campaign managers begin within a set budget. Yet it does not entail this what they will pay through the entire campaign. Cost Per Click is the price paid for each click of the ad – it states precisely how much an advertiser has paid for each click to its site. This can be measured by dividing the total cost of the campaign by the number of times the ad was clicked. For manual checking, you can multiply CPC by the clicks received by the campaign. There is no benchmark for making a CPC that is cost-effective as it varies by industry. It assists you to determine the budget considering the specific goals.
The Impression Share is determined by the number of impressions received by an ad compared to the impression numbers that it should have achieved. Once you have at the impression share, you can decide whether to alter bids or to increase the budget. On the other hand, lost impression is what permits you to find out how many impressions are lost due to low rank ads or budget restrictions.
Rate of Conversions
The percentage of purchases made is what is given by the conversion rate. It measures the click numbers of your ad and how many of the clicks resulted in conversions like sign ups, leads or sales.
Cost Per Conversion & Cost Per Impression
The Cost per conversion is the cost spent on acquiring the sales. The cost every cent of conversions post the ad was clicked to the number of times the ad was displayed.
Return on Ad Spend (ROAS)
Return on Spend or ROAS is colloquially known as ROI or Return on Investment. Though this is not absolutely correct. ROI takes into account everything like the cost of clicks, fees for the display ads, fees for management by an agency or third party. Nevertheless, the idea here is same. The return of PPC Campaign expenditures is known as ROAS and that is calculated by dividing the profit from an ad by the cost of the ad campaign. This is the most vital metric as it tells whether you are breaking even on your investment or what you can expect if you level up or down your investment.
These are some of the essential metrics, as suggested by the experts of PPC Management services who have been in the industry for the longest time, that you should focus on while conducting your PPC campaigns.