Pay per click is advertising on their properties on a search engine or a social channel. Every time a user clicks on a sponsored link or ad, the payment is done by advertiser.
On a search engine results page (SERP), you can pay for your website to appear in specific sections of the results. The major search engines make the majority of their revenue from advertising. Increasingly paid search ads are dominating SERPs and social channels. Use paid search to your advantage, especially if your site is new. Some thorough keyword research and imaginative tactics makes paid search an effective revenue stream for even the smallest niche website.
There’s a massive ocean of PPC metrics for you to navigate when you enter the online advertising world. The countless different metrics you have at your disposal allow you to track and analyze multiple views of your accounts and campaigns.
If your company is new to PPC, the metrics below are meant to work in harmony with your business goals. And for that synergy to happen, you have to know which key performance indicators (KPIs) are important to you before you start your campaign.
Valuable PPC Metrics
Before we ladle out the acronym soup of PPC metrics that matter, it’s worth mentioning again that each of these is directly tied to measurable results. By tracking and analyzing these stats, you can make improvements that will turn a flailing PPC campaign into a flourishing one.
The most important Google Ads metric you can track is pretty straightforward: What’s your Return on Investment (ROI)? Are you making more money than you’re putting in?
There are lots of ways to audit and improve the ROI from increasing conversion volume to reducing your cost per acquisition.
Similarly, Return on Ad Spend (ROAS) tracks the ratio between spending and revenue for vendors with varying checkout amounts, like ecommerce shops.
2) Cost per Acquisition/Conversion
Our first metric covers the revenue from your PPC efforts. Cost per Acquisition is how you follow the funds going into your campaign.
The average cost for clicks and conversions can vary widely. Factors include how much you’re investing, your average keyword bid rate, and quality scores. Here are a few easy ways to reduce your CPA and bolster your campaign:
3 Ways to Reduce Your Cost Per Acquisition
· Cut the fat. Look at the campaigns and keywords that are hurting your performance, and eliminate any wasted spend.
· Go negative (with keywords). Adding negative keywords your ad groups and campaigns refine their relevance, which can reduce your CPA and help the Google Ads system present more appropriate results.
· Lower your max bid. File under ‘obvious,’ but spending less technically does reduce costs, right?
ROI and CPA will never be the most valuable metrics in your PPC campaign, because they are directly related to your revenue and budget respectively.
3) Conversion Volume
Conversion volume, or the number of users who convert during a certain period, tracks the health of your campaign.
Even a modest increase in conversion volume can have a major impact on the campaign’s results. Increasing conversion volume is the easiest way to grow the ROI/ROAS of your campaigns.
If you can grow your conversion volume while maintaining your CPA, you can start generating more revenue from less spend .
4) Cost per Click
Like conversion volume, Cost Per Click (CPC) is a useful metric for determining your campaign’s overall health. Decreasing CPC can increase your number of total clicks, creating opportunities to grow your total conversions. The most effective way to control what you spend on various keywords is to manage your bids at the keyword level. Keywords that promote more valuable products might be worth a higher bid than keywords for less worthy conversions. With this strategy, even if you don’t decrease your CPC, your spend will be more effective.
5) Quality Score
Quality Score is less crucial than the metrics above, in that improvements don’t have a one-to-one correlation with a better return. If you can improve your Quality Scores, you can save money The algorithm behind Quality Scores is something of a black box, but it generally depends on three factors:
Each factor can be analyzed and improved by your PPC partner, especially if they’re directly involved in landing page design. Tools like dynamic text replacement and tactics like geographic specificity can also help with increasing Quality Score.
This reward comes in the form of lower CPC and better ad placements on the search engine, leading to higher click-through-rates and more quality traffic flowing through your ads to your pages.