10 PPC Advertising Key Performance Indicators (KPIs)
Think about where your campaign will most influence your company’s bottom line before defining and tracking KPIs for it. Demo conversions can be used to boost brand recognition or to affect bottom-funnel outcomes.
There are a variety of measures you may use to gauge the success of your campaign. Tracking traffic-focused KPIs can help you become a thought leader and develop brand recognition if that is your primary goal. These ten KPIs are critical for three major PPC advertising goals: generating traffic, converting visitors into customers, and generating income.
Here are a few metrics often used to measure website visitors’ volume and quality:
If someone sees your ad, regardless of whether they click on it, it counts as an impression. If your ad appears at the bottom of a SERP, it will not be counted as an impression unless the user scrolls down the page.
- The Cost of Acquiring a New Customer
Regarding advertising, the cost per acquisition (CPA) is an important metric to keep an eye on. The CPA, or cost per acquisition, is a useful metric for assessing the efficiency of various digital marketing platforms.
- Cost Per Click (CPC)
For example, the cost of a single click is divided by how many times your ad was clicked within a specific period. This is the metric you should use if you’re prepared to spend a certain amount of money on a marketing channel or campaign.
- Quality Score
Your ad’s quality score is a rating that indicates how relevant your adverts are compared to other marketers’ ads. More genuine and qualified leads are generated due to a high-quality score.
- Percentage of Visitors Who Click on to the Next Page after Clicking
For every 100 impressions, your ad’s click-through rate (CTR) is calculated by determining how many times your ad is clicked. Advertisers may know exactly how many times their ads are being clicked.
- Percentage of People Who Buy Something after Seeing an Ad
The percentage of visitors who take action after clicking on your PPC links is known as the conversion rate. Your PPC advertising demonstrates if your audience is doing the action you want them to take.
- Average Position
Your ad or listing’s average SERP position compares to other advertisers bidding on comparable keywords. Your bid amount, quality score, and searcher’s purpose all influence your average position.
- Impression Share
The impression share of your PPC campaign is a measure of its prominence compared to that of your rivals. Every time a user sees your advertisement, you get an impression. Ad or listing impression share is how often your ad or listing was viewed compared to the total number of views it may have gotten.
- Tracking the Source and Conversion
Conversion and traffic source tracking aids in increasing the return on a PPC campaign‘s expenditure. Conversion monitoring provides information about how visitors interact with your site. Identifying the most popular traffic sources (e.g., social media, search engines, software review sites) and watching how visitors interact with your content is the primary goal of source tracking and conversion tracking.
- Revenue Generated from Ad Expenditures
The revenue on ad spend (ROAS) is a metric used to assess the effectiveness of an advertising campaign. To analyze the effectiveness of different PPC ads, ROAS compares the revenue percentages generated by each campaign.
There are a few critical metrics that should be considered when evaluating the success of a PPC campaign. These metrics include click-through rate (CTR), conversion rate, and cost per conversion.
By closely examining these metrics, you can get a good idea of how your campaign is performing and where improvements can be made.
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