The Google Ads account that you have may be using a number of PPC metrics. All this information can overwhelm you. You can get confused with an information overload. So, removal of excess information is important. For analyzing your PPC campaign’s performance, you can get value from a number of metrics and focusing on these metrics will be a good idea. You need to know about these metrics as well as the requirement for measuring these. Reaching the right direction is possible by having a knowledge of what works the best and including this in your goal of advertising. It doesn’t matter whether you are a start-up business or an ecommerce business. You can run a campaign. Here are the 7 PPC metrics to focus on while conducting your PPC campaign.
1. Clicks – This is an important KPI. Your ad may have been clicked by a number of people. You can easily determine this with the help of this KPI. For indicating the success of the PPC campaign, the clicks play a major role. A single click can help in converting the people. You may receive several clicks which will help in measuring your campaign’s performance. You can change keywords, increase bids and can do a number of changes if clicks are not recorded. In order to measure the performance of your strategy, clicks play a major role. But for your campaign’s success, clicks are not the only measurement.
2. Impressions – On the platform of PPC advertising or on the search results page how many times your ads are displayed is known as an impression. Your ads may be displayed on a number of sites. You can get information about this with the help of a metric known as impressions. Getting conversions and clicks from impressions decides your PPC campaign’s success to some extent.
3. Click-through-rate – If you will divide total clicks by total impressions then you will get click-through-rate.
CTR = Total clicks/Total impressions
The quality score will be high if CTR is high. On the search results page you can maintain the position of your ads with its help. If click-through-rate is high then it shows that your landing page or website is getting more and more visitors.
4. Cost per acquisition – If your campaign is running then for each new lead you need to pay some price. This price is known as CPA. If you will divide the complete money spent in the campaign by total conversions then you will get CPA.
CPA = Total money spent in the campaign/Total number of conversions
How will you decide that a CPA is good? For a new conversion how much money needs to be spent by you? For every sale or lead, calculating the average revenue will help you in getting the answers of these questions.
5. Cost per click – For your campaign’s each click, you need to pay some price. The total of that price is known as CPC. If you will divide the total money spent during a campaign by the total clicks then you will get CPC.
CPC = Total money spent during the campaign/Total number of clicks
The audience or a specific keyword for which the competitors bid, helps you in deciding the CPC. When clicking for your campaign, ad group or keyword what amount of money needs to be paid by you? Setting of the maximum CPC depends on the strategy of bidding.
6. Quality score – For determining your ad content’s relevance and quality you can use a metric known as quality score. Ad content relevancy, keyword relevance, landing page experience, CTR history and past performance are the factors on which quality score depends. On the pages of search results, you can determine your ad’s position with the help of quality score. If the requirements of the potential customers are met with the PPC ad then your quality score will be high. But your keywords’ CPC can get decreased with this. It is because the customers’ needs are met because of the landing pages and your ads. A 7 to 10 quality score is considered as good. It shows that for advertising the strategy, less money needs to be paid by you.
7. Conversion rate – There can be a number of people who became your customer after visiting your site. The percentage of these people is known as the conversion rate. If you will divide the total conversions by total clicks then you will get the conversion rate.
Conversion rate = Total conversions/Total clicks
If you will update the design of your landing page and increase the total quality score then your conversion rate can get increased.
If you take interest in advertising your business for acquiring new customers fast then it will be good for you to take help from PPC management services.
