9 Most Important PPC Metric You Should Be Tracking

In PPC Metric Malaysia, key performance indicators play a fundamental role. They let you track the performance of your paid ads and improve them on the run.

However, there is not a definitive list of PPC Matrix every business in Malaysia should track, as they depend on both your industry benchmarks and your specific marketing goals. And, if not chosen strategically, the wrong, vanity metrics may distract you from reaching the desired campaign results.

Tracking your PPC advertising campaigns is essential. Without proper analytics you won’t be able to monitor your PPC campaign performance and see where things are going well and where things might need to be tweaked a bit. You’ll never know if you’re capturing your target audience or getting a good return on investment if you ignore important metrics.

Read also: Dreaming of a Successful PPC? Know How Measure PPC First!

The 9 Most Important PPC Metrics

If you’ve ever managed your own PPC KPIs campaigns, you know there’s a huge amount of data at your disposal. The problem? It’s not always clear which SEO metrics you should focus on, and it’s often difficult to know how to use those metrics to make your campaigns more profitable.

To lend a helping hand, this article has come up with a list of the most important PPC metrics consulting to take into account when gauging the success of your PPC campaigns. For ecommerce merchants, there are 9 most important PPC Metrics in Malaysia you need to track.

Clicks

If improving brand awareness is the main objective of your PPC campaign, Click Metrics and impressions are two metrics that should be on the top of your list. If you’re looking to make a sale, then getting a paid ad click is just the beginning of the sales process. But every sale has to start somewhere. 

The number of clicks you get will depend on how much money you’re spending, of course, but what you really need to monitor are any trends or variations in clicks.

Cost Per Click (CPC)

The average amount you pay each time a person clicks on your paid ad is referred to as Cost per Click (CPC), and it’s another useful metric of your PPC success. CPCs vary by industry, but just like clicks, you’ll want to keep a close eye on trends. Over the last five years, CPCs have increased across the board, but some industries have risen faster than others.

Also remember that your CPCs are based on the competitiveness of the keywords that you’re using. If you start to see your CPCs increase, consider using longer-tail keywords to attract more targeted traffic, or increasing your maximum bids to stay competitive for your most important keywords.

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

CPCs are additionally a key metric to look at when determining your optimum budget if you have a specific conversion goal in mind. For example, let’s say your average click costs around $1.00, your average conversion rate is 2%, and you want to get around 20 sales per month. Your monthly budget should be $1,000 (1000 clicks x 2% conversion rate = 20 sales and 1,000 clicks x $1 = $1,000).

Click Through Rate (CTR)

Click-Through Rate (CTR) is a measure of how often your ads are shown versus how often your ads are clicked on (i.e. clicks/impressions). So, for example, if your ads were shown 1,000 times and clicked on 500 times, your CTR would be 50%.

CTRs vary throughout the month, throughout the week, and even throughout the day. Some advertisers even see substantial changes in CTR during the week versus the weekend. CTR can be evaluated on a keyword level or an ad level, and shouldn’t be compared any more frequently than from month to month. Focusing on subtle changes in CTR can derail even the soundest marketing strategy.

Quality Score

Quality score is a number that Google assigns to keywords based broadly on the following attributes:

• The past CTR of your keyword and your account overall
• The quality of your landing page (where you’re sending traffic)
• The relevance of your keywords to your ad text and to the user’s search

You’ll want to pay attention to your quality score because Google considers both quality score and the keyword’s bid amount when determining the position of your ad. The exact calculation of how Google determines ad position is complicated, but having a higher quality score means that, in some cases, you can jump a competitor’s ad even if that competitor has a higher bid.

Impression Share

Impression share measures the percentage of all potential impressions that your ads are getting. 

For example, if 1,000 searches were done in a day for a keyword of yours, and your ads were shown 800 times for that keyword, you would have an 80% impression share. Conversely, you would have a 20% lost impression share, since you’re missing out on 20% of the available impressions.

Conversion Rate

Conversions are what most advertisers are after, whether they’re in the form of leads or sales. Keep in mind that there’s no solid benchmark for conversion rates across industries; they can vary greatly from advertiser to advertiser. 

When it comes to conversions and conversion rates, much like the other metrics, trends are the star of the show. Keep in mind that a change in conversion rate can be as simple as seasonality or as complex as a changing business landscape within your industry.

Cost Per Conversion

Cost per Conversion is the actual cost paid to get a sale or a lead. Let’s say that you spent $80 on clicks and got two sales, your resulting Cost per Conversion would be $40. This would be a high Cost per Conversion if you’re selling t-shirts (where the average order might be $20), but a low Cost per Conversion if you’re selling warehouse shelving (where the average order might be $2,000).

For this reason, there’s no singular Cost per Conversion to shoot for when running PPC campaigns. Instead, it all comes down to how much a sale is worth to you, which means you need to look at your profit margins and determine what an acceptable Cost per Conversion is for each of your product lines.

Total Conversion Value

Total conversion value is another important metric to compare between campaigns, ad groups, and even individual keywords. Some business owners find that shoppers who are looking for particular products tend to spend more.

For instance, say you’re running an ATV store and you’ve noticed that someone looking for a new battery is likely to just buy that battery and leave. 

On the flip side, you’ve also noticed customers looking for new headlights tend to also want to upgrade other features at the same time, like tires, mirrors, and decals. Although by themselves, batteries and headlights may cost around the same amount, the total conversion value of the headlights will be higher since the average order value is so much higher.

Return on Ad Spend (ROAS)

Return on Ad Spend, or ROAS, is also known colloquially as Return on Investment, or ROI. Although this isn’t technically correct, since true ROI would take into account all of the expenses that you have regarding your PPC (the cost of clicks, fees for management by a third party or agency, fees for the design of display ads), the idea is the same nonetheless.

ROAS is the return that you get on your PPC expenditures, and you can calculate it by dividing the profit from an ad campaign by the cost of that ad campaign. This is the most important metric because it tells you whether or not you’re breaking even on your investment, as well as what kind of return you can expect if you scale up or down your PPC performance efforts.

Conclusion 

PPC stands for ‘pay-per-click’. These are the ads you’ll see on a Google search query or Facebook feed. Advertisers pay a small amount each time someone clicks on one of their ads. Essentially, you’re buying clicks to drive traffic (and ultimately conversions) to your website.

With these 9 critical PPC Analytics metrics in mind, you can get a clear picture of your campaign’s current performance and learn how to make it better.

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