KPIs in PPC: Why These Metrics Matter (and Aren’t Just Marketing Jargon)

KPIPay-per-click is a scary choice for some marketers, especially considering the extremely popular categories do not come cheap. However, there are ways that you can mitigate your risk by monitoring the Key Performance Indicators (KPI) closely to determine the effectiveness of the strategy. To a certain extent, you decide which KPIs are the most important, but when using PPC the focus becomes somewhat narrowed.

Quality Score

Google is judging you. A lot. This is the score they give that takes into account how you’re doing as a PPC advertiser. They look at your click-through rate and how relevant each keyword is to your ad group. So if you’re using the keywords of ‘best ice cream parlor’ to sell your cupcakes, you may want to rethink your strategy. They’ll rate your landing pages to ensure they’re easy to navigate and full of quality content, and look at how well your AdWords account has done in the past. A higher quality score means better bang for your PPC bucks.

Click-Through Rate

Your click-through rate is important, as it is a measure of how well your ads are performing with consumers. However, it’s worth looking beyond just the number. Businesses have been known to drive up their competition’s costs by repetitively clicking on an AdWords website, so ensure you’re monitoring for this activity. You also want to factor in that even if you do not get a conversion from the first time someone clicks, that doesn’t mean there wasn’t a positive interaction on the website that led to a conversion later down the road.

Conversion Rate

Your conversion rate measures the action you need someone to take on your site (whether it’s to sign up for a newsletter, request rates or purchase your product), but again, it’s important not to discount the other actions people may be taking on your website. For example, they may have clicked on your company to send your phone number to a friend. In which case, this would be the same as a conversion, but the number wouldn’t reflect that. Also, if you improve your website, you may have customers checking back in more often for content but not actually buying anything new. This needlessly decreases your conversion rate.

Cost Per Conversion

We saved the most important for last. This is what will tell you how much you’re spending each time you convert a consumer. As discussed, you’ll want to look at your PPC goals from every angle; ultimately if you’re spending a lot for a little, then you’ll need to reconsider how you approach online marketing.

Link Right Media understands that everything (from people to keywords) has to be measured by results. Call us today if you need a personalized solution when it comes to measuring your KPIs in PPC

© 2016 Link Right Media | All Rights Reserved. 625 W Main St #101, Arlington TX 76010 | 817-462-5422 partner-logos