What are the key metrics to track in PPC campaigns?
The amount of data that PPC campaigns provide is astounding. With most details about the buyer’s journey at your fingertips, you can strategize your marketing efforts.
But here is the kicker, not every piece of information might be worth looking into right now. Some metrics are more important for your current needs, while others forecast long-term gains that you can make.
This article will discuss the seven key metrics to track in your PPC campaigns.
Metric 1: Clicks
Clicks are at the top of the most important metrics of your PPC campaign. When a prospect clicks your ad, it is essentially the beginning of the selling process. The ratio of how many clicks you obtained and how many of those clicks turned into sales is how you measure your expenditure on the ad campaign.
Metric 2: Cost Per Click (CPC)
Cost Per Click tells you how competitive a keyword is. It lets you decide which keywords you must target currently and which one to let go for now. However, there comes a time when the keywords you're using cost way too much. When that happens, you must switch to the long-tail keywords.
CPC determines the budget of your PPC campaigns. By considering your average click cost against your conversion rate, you can calculate whether you're getting positive or negative ROI.
Impression share shows the percentage of how many times your ad was displayed against the number of keyword searches. For instance, if a keyword was searched for 2000 times in a month and your Google ad appeared in 1000, your impression share is 50%.
Google categorizes Impression share into losses due to budget and losses due to ad rank. Considering these parameters, you can decide whether to increase your budget or let it remain the same.
Metric 3: Impression Shares
Metric 4: Conversion Rate
The goal of your business is to convert. Whenever a prospect clicks your advert, your focus becomes to convert that click into a sale. It is, without a doubt, the most important metric to keep an eye on.
It lets you determine if your marketing efforts are bearing fruit or if it is time to go back to the drawing board and create a new strategy. It is one metric that you must optimize regularly.
The cost of conversion can be a positive or a negative for you. If you have spent too much for an ad campaign and the customer has purchased only little, the CPC is way too high.
Other factors you must consider here are your profit margins and the value of the customer. If the customer is likely to return and make repeated purchases, the same high cost might not feel like much.
Metric 5: Cost Per Conversion
Metric 6: Click-Through Rate
The Click Through Rate tells you how many times your ad has been clicked against the number of impressions. If the CTR is low, it could mean the ad is targeting the wrong people – hinting that you need to make some changes to your keywords.
The goal of your business is to convert. Whenever a prospect clicks your advert, your focus becomes to convert that click into a sale. It is, without a doubt, the most important metric to keep an eye on.
It lets you determine if your marketing efforts are bearing fruit or if it is time to go back to the drawing board and create a new strategy. It is one metric that you must optimize regularly.
Metric 7: Quality Score
Conclusion
PPC campaigns can only be successful if you keep an eye on the metrics. Data-driven marketing is how you can make your campaigns a success. The more you understand these metrics, the better your chances of running a successful campaign will be.
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