Our Top 3 PPC Metrics

Our Top 3 PPC Metrics

Although it may seem a no-brainer, KPIs are bound to your business goals. Always.

So, to clarify, they are not a factor of the PPC campaigns performance.  If your business’ goal is sales, or leads, or whatever, that’s the true and only KPI for your PPC campaign. Once this clear, then you will determine how you will measure that particular type of success.

Google AdWords offers such a sheer amount of metrics that you can easily feel overwhelmed. That many that it is way too easy to get lost in the mare magnum of data you get from your AdWords campaigns.

Which ones will help you measure how your campaign is performing? And most important, which ones will tell you if your investment is bringing back the expected return?

Back in 2016, the Wordstream Blog team asked 17 experts on their top 3 PPC metrics.

The questions were:

#1: If you could only check three Pay Per Click metrics in your PPC account, which three PPC metrics would you choose? In other words, which three PPC metrics do you think provide the most complete picture of your performance?

#2 (Bonus Question): What PPC metric do you think is bogus/overrated/a waste of time?

 

They didn’t ask us, but if they had this would have been our answer to both questions 🙂

#1 Question: The Top 3 PPC Metrics you must check

 

1. Conversion Rate – The ability to persuade visitors to take a desired action.

The number of clicks that turn into conversions. Or what is the same, how many people end up buying, which in the end, happens to be our business goal. This clearly means that you have brought the adequate traffic to the products or services you sell. We have positioned Conversion Rate on top of the list because this metric tells us precisely how relevant our keyword and ad combination is to our landing page and this always translates into more and more sales.

The higher this metric, the better you are converting your visitors. The higher the conversion rate, the better the account is performing; and conversely, the lower the percentage, the worse the performance

 

2. CTR – The percentage of people clicked on the ad to arrive at the destination site.

CTR is our second choice. It is vital as sales are our primary goal and CTRs directly correlates to Conversion Rates. The CTR goal should always be achieving a 100%; this would mean that we have written the perfect ad for each keyword.

In most PPC platforms our Click Through Rate helps determine both our ad rank and our cost per click. The higher our CTR, the better our Quality Score and the lower our costs. Improving a keyword’s Quality Score will consequently increase the average position and decrease the CPC.

 

3. Conversion Value – Conversion values help you track and optimize your campaigns’ return on investment (ROI).

Good PPC metrics are traffic focused, and extraordinary PPC metrics are conversion-focused, money focused!

Congratulations if you’re already using conversion tracking, and if you are not, set it up immediately.

To put it bluntly, the Conversion value shows how much money I’m bringing my clients. This is the amount of money generated by the conversions.

Google also mentions other benefits of using conversion values:

Better insight: You can measure the total conversion value generated by your campaigns’ conversions. This also helps you track your campaigns’ ROI by using the “Conversion value/cost” column. You can use this data to identify keywords, ad groups, and campaigns that show a high or low return on investment and manually change bids, budgets, and targeting.

Smarter bidding: Once you set up conversion values, you can use the target return on ad spend (ROAS) bid strategy.

So, what else do you need to know?

 

#2 (Bonus Question): What PPC metric do you think is bogus/overrated/a waste of time?

Without any hesitation, Cost per click. Who cares about the cost of a click?! What it really matters is how many people buy and how much they spend. Sales are our goal, do never forget it!

 

Summarizing

1, select more than one metric to measure your success. Focusing just on one KPI will make you lose perspective.

2, choose conversion-focused metrics.

Overall, choosing the right KPIs will provide you with all of the information you need to not only track but improve your PPC campaigns and consequently increase your sales. You will be able to develop insights into what is working and what is not, what your target audience is, etc.

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Shawn Catherwood
Content Crafter at

Shawn has worked in the marketing field for many years. He stays current with the latest SEO keyword strategies, which change often and loves writing about it.

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