Say you’ve officially launched your PPC campaign, and you let it do its thing for a couple of days.
You check the analytics and see an overwhelming amount of numbers and metrics in front of you. Which ones matter? Which ones should you check first?
Which ones are right for your campaign? In this blog post, we’ll cover the PPC metrics that are the most important.
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Say you’ve officially launched your PPC campaign, and you let it do its thing for a couple of days. You check the analytics and see an overwhelming amount of numbers and metrics in front of you. Which ones matter? Which ones should you check first? Which ones are right for your campaign? In this blog post, we’ll cover the PPC metrics that are the most important.
PPC Metrics: Aren’t They All the Same?
To make the claim that certain metrics are “more important” than others is a bold one, but depending on the context, it is true. Let us clarify things further. Depending on the goal and aim of your PPC campaign, certain metrics become either irrelevant or do not matter “as much”.
Let’s really drive the point home with the example of Impressions or Impression Share.
Impressions indicate how many times an ad has been displayed to an individual; it does not mean they clicked on the ad, merely how many times they saw it. While this metric is indeed valuable when the goal of a campaign is reaching a high level of engagement, it suggests individuals are seeing the ad but not clicking due to perhaps poor targeting or the ad’s impact. In a situation where the budget is tight and ROI is the sole focus, impression share might not matter as long as the clicks you get are qualified.
Most Important PPC Metrics
PPC metrics and their value are determined largely by what we’re trying to achieve with a campaign. Within Google Ads itself, there are over 40 important metrics to consider when evaluating PPC performance. It can get a little overwhelming for a newbie, so having the support of a digital marketing agency can come in handy when selecting PPC metrics and managing the campaign. With that said, let’s take a look at 5 most important metrics you must track if your PPC goal is ROI, conversions, and traffic:
1. Clicks
Clicks are the metric that starts it all; they monitor how many people actually click on your ads, usually because they are captivated or interested in them. While clicks don’t provide the entire picture or indicate the success or failure of your ad campaign, they do show that your ad is catchy, fits the users’ search query or intent, and is reaching the target audience.
2. ClickthroughRate (CTR)
CTR, or clickthrough rate, is one of the most important PPC metrics out there as it indicates the percentage of people who clicked on your ad after seeing it. To calculate CTR, the total number of clicks on an ad is divided by the total number of impressions (the number of times the ad was displayed). It can further be multiplied by 100 to get a percentage.
What makes it an incredibly valuable metric is that it indicates how appealing and relevant your ads are. A high CTR shows your ads are indeed valuable and relevant to the viewer, but a low CTR suggests your ads are:
● Reaching the wrong audience, perhaps due to geo-targeting, keywords, or a number of other reasons.
● It is not appealing enough to click.
The average CTR varies widely across industries, so you must check the average CTR for your industry if your CTR matches or exceeds it—good job! If not, you have some evaluating to do.
3. Cost-Per-Click
Cost-per-click, or CPC, tracks how much you have to pay every time a user clicks on your ad, regardless of whether they perform a desirable action like making a purchase or signing up. The average CPC is determined by taking the total cost of your clicks and dividing it by the total number of clicks.
Several factors determine what your cost per click will be, including:
● Your Maximum Bid: The highest amount you're willing to pay per click.
● Quality Score: A measure of your ad’s relevance, landing page experience, and expected CTR.
● Competition: The number of advertisers bidding for the same keywords or audience.
CPC is a major consideration when establishing a budget and strategizing.
4. Cost Per Acquisition
CPA (Cost-Per-Acquisition) is the metric that tells you how much you’re paying each time a user performs a desired action (like signing up, making a purchase, etc.), or simply put, performing a desired action. It can be calculated by dividing the total amount of money you've spent on your ads by the number of conversions (or actions) you've achieved. "Conversion" here is an umbrella term for sales, sign-ups, or whatever the desired action is. Ideally, you’ll want your CPA to be low enough that you’re still making a profit after the cost of acquiring each customer.
5. Conversion Rate
Conversion rate must be on your list of most important PPC metrics, as it is a fantastic way of measuring how good your ad is in terms of getting people to perform a desired action, be it making a purchase, filling out a form, or signing up for a service. If most individuals who click on your ad perform a desired action, your conversion rate should look good. If only a few are doing so, it might indicate that you need to make changes within your marketing funnel or campaign. This could indicate improving your landing page design or perhaps your website lacks mobile optimization. Something is hindering the conversion of users and it must be addressed if the conversion rate is low.
How to measure the success of the PPC Campaign
To measure the success of your PPC campaign, to put it as simply as possible:
● Track the numbers that align with your campaign goals.
● Don’t just look at one metric. It’s about the whole picture.
● Adjust your strategy based on what’s working and what’s not.
Conclusion
While the above-mentioned PPC metrics could arguably be considered the most important on a fundamental level, every campaign and its goals are different, and determining which metrics need to be tracked is an art in itself. Tying up with a digital marketing agency can greatly assist with this task, as they understand the nuances of your industry, create a strategy that works within your budget, and make adjustments on the fly as and when needed.
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