Dreaming of a Successful PPC? Know How Measure PPC First!

In the previous article, we have discussed What is PPC? PPC or pay per click is an advertisement marketing. In this PPC you have to use metrics to measure your PPC. Are you curious about the metrics to measure your PPC campaign success, what PPC measure and how measure PPC works?  In this article, we will discuss this matter. Are you ready? Let’s check this out!

Read also: The Benefit Of Using Pay Per Click (PPC) Advertising

Understanding the Reporting Metrics Re-Phrase from Ref

Before you run and analyze PPC campaigns on your own, you have to know and understand several metrics definitions so that you can run and analyze the PPC easily. Here are PPC metrics explained that will impact the PPC performance.

Impressions 

Impressions means the number of times your ads were served in the search results. When the users see your ads, it also counts as an impression. You can see how many impressions your ads have generated in Google Ads but tracking this data doesn’t measure the success of your campaign.

A metric that is valuable is impression share. This measures the number of impressions your ad received against the number of impressions it was eligible to receive.

The simple calculation for impression share is: number of impressions received ÷ total number of impressions available. There are two factors that impact your number of impressions such as budget and ad rank.

Click – Through Rate (CTR)

Clicks means the number of times users clicked on or engaged with your ads and Click – through rate (CTR) means the percentage of people who clicked on your ads. This is calculated by dividing clicks by impression. CTR is a very important indicator of how well your ads are. Calculating your CTR is simple, just by using this formula: (Total ad clicks ÷ total ad impressions) x 100 = CTR %.

CTR is one of the three factors in deciding your ad’s Quality Score, which in turn affects your ad position in search results. This score is calculated from ad relevance (AR), landing page experience (LPE) and click-through rate.

Conversion 

Conversions means the number of conversion actions your ads have generated. The actions to be tracked are set up at the account level. Conversion is an action that takes place on your website for the purpose of your campaigns. You have to select something that has a value for your business, and fits within the aims and targets you’ve set up for the campaign achievement. 

This conversion has been divided into several types such as website purchase, website lead, page view, sign up, app installs, app first opens, In app actions and phone calls.

Conversion Rate

Conversion rate means the percentage of people who clicked on your ads and ended up converting. You don’t have to keep doing the PPC tracking conversions you get monthly because it is not an effective way to monitor your PPC performance. 

Conversion rate is also important for PPC so that you have to increase the conversion rate by following these steps.

Your ads have to be relevant. Check your ads and take a look at your PPC, make sure that your advertising describes what you are advertising

Make sure your landing pages are optimised. A user is more likely to convert when they go to a specific page that has been set up especially for PPC campaigns. Once you have a page set up, you have to make sure it’s optimised to encourage as many conversions as possible.

Return on Investment (ROI)

Once you’ve got your conversion tracking set up, another good metric to follow is return on investment. Return on Investment  (ROI) will calculate what the advertising campaign returns to you financially following your investment into running your PPC. The formula for ROI is  (Revenue – Costs) / Costs.

Revenue refers to the amount of money a user pays for a product on your website and cost is the amount you spent to produce or stock the product in the first place. Costs also include the amount of money you’ve spent on your advertising.

Cost per Click 

Cost Per Click or CPC is one of the metrics you can measure in your PPC campaign. CPC is the factor of PPC advertising that you are actually budgeting for.This metric is the amount of money it has cost you to have someone click on your link and visit your site and Average CPC means the average cost per click paid for the clicks received.

Read also: Manual CPC Bidding Strategy And Its Function For Your Ads

Landing Page 

Landing Page is a web page that appears in response to the search engine optimization search result. The landing page is what determines an advertiser’s conversion rate. Landing pages are designed based on the focus and goal you want to achieve.

Quality Score 

Quality score means an indicator of how relevant your ads, keywords and landing page are to the user. A higher Quality Score can mean lower CPCs and better ad positions. Quality Score is one of the important components of the auction but it’s still a health metric, not a PPC KPIs.

Bounce Rates 

Bounce rate means the percentage of the visitors of the landing page who closed the page without making any conversion or any further interaction with the website. A high bounce rate can indicate a number of things.

But you may not serve the user with the information that is relevant to them. In this case you have to evaluate your content in correspondence with the ads that you are running, to ensure that the page is in keeping with the service or product.

Average Position

Average position means where your ads appeared on the search results page (SERP.) The higher the position, the greater the visibility you’ll have. Average position also indicates how your Ad Rank compares with other ads.

Conclusion 

The way to measure your PPC campaign success is the same as how to measure SEO. You have to focus on several PPC Matrix which will impact your campaign. Economics also plays an important role in measuring the PPC. So, you have to prepare all the metrics so that your campaign can be successful.

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