Pay-per-click (PPC) advertising is an effective way to reach your target audience and generate leads. To get the most from your investment in paid advertising and ensure you are reaching the right people at the right time, monitoring key performance indicators (KPIs) is critical. Here, we share the PPC KPIs to track to ensure you get the most from your PPC campaigns and maximize your return on investment.
Choosing the Right KPIs for Your Business
The first step in successful PPC management and campaign analysis is identifying the right KPIs to track. There is no standard list of PPC metrics or one-size-fits-all option for gauging the effectiveness of any campaign. Instead, you must select metrics based on your unique business goals, marketing objectives, and industry standards.
Selecting the right KPIs to measure and track ensures you get the most value from your efforts and an accurate view of the results. Although some metrics might give the illusion of success, if they are irrelevant to your overall goals, they can mislead you into thinking your campaign is more successful than it actually is. For example, a KPI indicating that a significant number of users clicked on an ad may not be a useful measurement if they did not follow through on a desired action, like making a purchase or signing up for a newsletter.
When your KPIs are on target, you gain honest, actionable insights that allow you to improve your efforts where needed. For instance, not getting many clicks could mean your ad copy needs tweaking, while many clicks without action possibly indicates issues with your landing page or keyword selection. So while the following list isn’t an exhaustive list of PPC KPIs to track, monitoring your performance in these areas can help you be more strategic in your campaigns and get better results.
The Best KPIs to Track in PPC Campaigns
Consider using these PPC metrics to measure the success of your digital marketing campaigns.
Impressions
Ad impressions refer to the number of people who saw your ad regardless of whether they clicked on it. When you have a high number of impressions but not many clicks, that indicates that the ad copy isn’t relevant or compelling enough to spur action. You can increase impressions by widening your reach with more regions or industries or using broader keywords.
Related to impressions is the impression share, which tells you how well your ad is performing against your competition. Essentially, this percentage tells you the number of impressions compared to the number of potential impressions, and it’s important when you’re trying to build brand awareness. A higher percentage means you’re reaching your target audience; if you aren’t, then you need to adjust keywords, increase your bid amount, and more closely monitor your competitor’s keywords.
Click Through Rates
The click-through rate measures how many users clicked on the ad. It does not show you what they did when they reached your site, just that they clicked the ad. The click-through rate indicates the quality and relevance of your ad. If you have a large number of impressions but a low click-through rate, then you need to adjust the ad copy, target audience, or keywords to achieve stronger results.
Still, keep in mind that the average click-through rate is only around 3%, so anything higher is a strong showing.
Quality Score
Google rates PPC ads on quality, scoring them on a scale of one to ten. The ad click-through rate, the keyword’s relevance to the user’s query, and the quality of your landing page all influence the quality score. A good score (between seven and ten) means that users are more likely to find your ad relevant.
If your ads score low on quality, you must make some changes. This could include revising the landing page to be more user-friendly, using a better mix of keywords, changing the ad copy, and collecting more user reviews for your product or service.
Cost Per Click and Cost Per Acquisition
Tracking how much you spend to get clicks and convert customers helps you monitor your budget and avoid overspending on PPC campaigns. To calculate the cost per click (CPC), divide the total cost for all clicks by the number of clicks the ad receives in a specific period. To calculate the cost per acquisition (CPA), divide the total cost for all conversions by the number of conversions.
CPC and CPA conversions can help you measure the effectiveness of your PPC campaigns against other marketing efforts and make strategic decisions moving forward. If you are paying too much for clicks and acquisitions, you can adjust your campaign with different keywords or copy to get more from your investment.
Conversion Rate
One of the most critical PPC KPIs to track is the conversion rate or the number of users who complete the desired action after clicking on your ad. Whether you want them to make a purchase, download an app, or request more information, a good conversion rate means your ad is reaching the right audience and hitting the right notes. The average conversion rate is 4.4% for search ads, but your specific goals may differ.
If your conversion rate is low, you may have a problem with your landing page or offer, or the audience is not responding to the ad copy.
Get Help Maximizing Your Pay-Per-Click Campaigns
Google AdWords PPC management can be complex. Choosing the right keywords, crafting the perfect copy, and knowing which PPC KPIs to track requires experience to produce results. Small and medium-sized companies can rely on Peppermonkey Media for help executing effective and affordable campaigns that help them grow their businesses and reach customers that are looking for their specific products and services.
If you are struggling with your pay-per-click campaigns and need expert help attracting your audience’s attention with comprehensive digital marketing solutions, request a complimentary digital marketing strategy session today. You can also speak with one of our experts by calling (888) 231-9764.
