Want to know how well your PPC campaign is doing?
You need to study the right metrics. This gives you the data you need to demonstrate ROI and recognize where your campaign could use a little work.
But what are the right metrics anyway?
CTR (Click-through Rate)
Click-through rates show the number of times your ads were clicked on versus the number of times they were shown (impressions).
For example, if your ads achieved 2,000 impressions and 1,000 clicks, you’d have a CTR of 50 percent.
A low CTR means an ad just isn’t engaging users like it should. It’s worth comparing it to ads with a higher CTR to see what you can learn. Is it the bland design? The weak CTA? No special offer?
For example, three-quarters (75 percent) of users questioned click on ads because they make finding crucial information easier.
CPC (Cost Per Click)
Cost Per Click is the amount of money you pay whenever a user clicks on one of your paid ads. They vary from industry to industry, but it’s worth keeping an eye on trends and averages to make sure you bid realistically.
This metric matters because it relates to the ROI you can expect to generate with an ad, based on the cost you’re paying and the volume of traffic it brings in.
Quality Score
Google uses Quality Scores to determine the value of your ad, based on the quality of the landing page users see after clicking through, how relevant to the user’s search query your ad is, and the CTR expected.
Your Quality Score is represented as a number, and anything from 7 to 19 is solid. You’ll pay less money to advertise through Google Ads than a business with a Quality Score of 6 or below.
Tracking your Quality Score is crucial, as you can take steps to improve it if it’s lower than it should be.
Impression Share
When a user sees your ad, that’s an impression (whether they click or not). Tracking your ads’ impression share shows you how well you’re measuring up against competitors.
You can make sense of your share by dividing your campaign’s overall number of impressions by the total amount it was eligible for. Google bases eligibility on various factors, such as approval status, quality, and targeting settings.
Conversion Rate
You want your ads to be so good they convert everyone who clicks on them, whether that results in a purchase or lead generation. That’s no easy feat, but you can measure how close you are to achieving it by analyzing your conversion rate.
Divide the number of conversions a campaign earns by the total interactions. If your conversion rate is low, your landing page might need a little work or prospects can’t find the information they’re after. For example, a one-second delay in page load times can cause a 7 percent drop in conversion rates.
Follow the customer’s journey and judge its quality for yourself.
These metrics are essential for tracking your paid ads’ success over time, and identifying where they’re going wrong. Monitor them consistently to stay on top of your campaign’s performance and reduce your risk of trailing behind competitors.
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