Key Performance Metrics lays the foundation of any effective PPC marketing data in Malaysia.
However, the importance is not given to metrics that can assist them in tracking the failure or success of their pay per click advertising Google investments.
What is PPC marketing? They focus equally on other complicated factors to measure the impact of their PPC marketing which keeps them away from identifying and measuring the data that matters.
Read also: The Benefit of Using Pay Per Click Advertising Malaysia
Performance tracking is essential for every marketing strategy, but for PPC it matters a lot because you invest a certain amount of budget on it, and expect better results than other marketing channels.
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If the results are not what you expected, then it hurts because you not only have to bear the loss of time but also have to deal with the financial burden as well. To overcome these issues, you must understand and track all the key PPC performance metrics, which will help you in gauging the performance of every cent spent
PPC Performance Metrics
To help you with your goal of getting the best ROI from your paid ad campaigns, this article has highlighted 12 essential PPC 2021 Performance Metrics you should be monitoring.
Read also: 9 Most Important PPC Metric You Should Be Tracking
Clicks
Clicks are one of the important PPC Performance metrics because it all starts with them. Clicks are all about the number of people who click on your business ads.
They generally are the simplest and commonly used metric to identify performing vs. non-performing ads.
Click Through Rate
Click Through Rate is the number of clicks that your ad receives against the number of times they are viewed.
Let suppose your PPC ad receives 500 impressions and it’s clicked 50 times then the CTR of your campaign will be 10%.
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A good or higher CTR shows that your ad is relevant and it helps users find the right service/product.
Quality Score
Quality score is an essential metric that shows the relevance of your PPC ad content on Google Ads.
Different factors like the format of the ad, landing page experience, CTR, and more are measured before assigning the quality score to an ad. It makes it a bit tough to understand as compared to other metrics.
Cost per Click
Cost per click (CPC) is the amount of money that an advertiser pays for each of their ads.
You can easily find the CPC of an ad by dividing the total cost of your campaign by the number of clicks it received.
Ideally, the lower the CPC, the better, and PPC experts continually work on pushing it down.
Average Cost Per Click
This is the same as the Cost per Click but is usually taken as an average cost per click by industry 2021 of multiple ad units or campaigns to measure the average cost of clicking across the entire spend.
Cost Per Acquisition (CPA)
Cost per acquisition is the actual cost to an advertiser when he acquires a customer. Concerning PPC, this is the cost the advertiser spends on ads and campaigns to acquire a customer.
Cost per acquisition is calculated by dividing the total spent on PPC Campaigns by the actual number of the customers acquired.
For example, if you spent $5000 to acquire 10 customers, your CPA will be $500 or $500 for each customer.
Similar to CPC, one of the primary goals of the advertiser is to have at least CPA as possible.
Conversion rate
The conversion rate paints a good picture of the success of your campaigns. The conversion rate is the average number of visitors (or clicks) converting into leads or customers.
Let’s say, your e-commerce website gets 100 clicks in a week, and you get 20 sales from them, your conversion rate will be 20%.
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In ideal scenarios the higher the conversion rate, the better.
Impression Share
Impression share is all about how many times a person views your ad. Impression share doesn’t consider the relevance or click-thoroughness of the ad but only provides an insight into the reach of your ad.
This metric is useful for brand awareness campaigns as it helps with product recall and brand value.
Average Position
The Average Position determines your rank amongst other ads on search results. (This is not an organic metric).
The average position of an ad is calculated by multiplying the quality score of your ad with its maximum cost per impression.
You cannot get the first position by simply increasing your bid because the quality score also has equal weight to decide which ad will be on top of all.
Budget Attainment
Budget attainment provides the monthly budget that was set to be spent on ads. Sometimes, it is tough to meet the predefined budget requirements, and you have to increase the budget to run your campaigns successfully.
This metric will spot whether your ads were under the budget that you specified for your campaigns or they take more than that.
Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is the quantity of revenue that a business gets after spending a specific budget on ad campaigns.
It is one of the most commonly and heavily regarded PPC metrics as it gives a high-level overview of paid ad campaigns.
The more returns you get on your ads, the more successful your ad campaigns.
To understand it better, suppose your e-commerce business generates revenue of $10,000 after spending a budget of $2000 then your return on ad spend will be 500%.
Bounce Rate
Bounce rate is the number of visitors that only viewed your landing page or had only interaction with your website and left.
The bounce rate of PPC statistics 2021, when compared with other channels, helps you understand the quality of paid campaigns and their conversion rate.
Ideally, the lower the bounce rate, the better it is.
Conclusion
Key Performance plays an essential role in determining the success of your PPC campaign. All the metrics are connected with each other. It is not necessary that one metrics can only measure the success of your campaign.
That’s why you should focus on improving all the metrics, instead of focusing on one or two metrics only. You should also track and improve the metrics on a regular basis to make your PPC campaign successful.
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