Pay-per-click (PPC) is an online advertising model in which advertisers display ads on web pages and only pay when a user clicks on the ad.
There are a lot of PPC marketing KPIs you could be tracking, but which ones are most important? In this post, you will learn the most important PPC Marketing KPIs you should always be tracking to maximise your ad spend.
What are KPIs?
A key performance indicator (KPI) is a metric used to evaluate the performance of an organisation, business unit, or individual.
There are many different types of KPIs, but they all have one common goal: to help organisations track and improve their performance.
The most important thing to remember about KPIs is that they should be aligned with the organisation’s strategic goals.
This means that KPIs should be chosen carefully, and only those that are truly relevant to the organisation’s success should be tracked.
Why are KPIs important?
There are a few key reasons why KPIs (Key Performance Indicators) are important for businesses. Firstly, they provide valuable insights into how a company is performing against specific goals and objectives.
Secondly, they can help identify areas of improvement and potential growth areas. Lastly, KPIs can help benchmark performance against competitors or industry standards.
Ultimately, KPIs play an important role in helping businesses to track and measure progress towards achieving their desired outcomes.
What are some good KPIs examples?
Many key performance indicators (KPIs) can be used to measure the success of a business. Some common KPIs include revenue, profit, number of customers, retention rate, and customer satisfaction.
The specific KPIs that are most important for a business will vary depending on the industry and the goals of the company.
However, all businesses should track KPIs in order to gauge their performance and identify areas for improvement.
How do you choose KPIs?
When setting goals and objectives, it’s important to choose KPIs (Key Performance Indicators) that are specific, measurable, achievable, relevant and time-bound.
SMART goals are ones that are specific, measurable, attainable, relevant, and time-based.
To choose the right KPIs for your business, start by thinking about what you want to achieve and then choose metrics that will help you track progress towards your goals.
Make sure to set KPIs that are realistic and achievable, so you can stay motivated and on track.
PPC (Pay-Per-Click) KPIs
PPC is an advertising model in which businesses can pay to have their ads displayed on a search engine or website.
Ads are typically displayed as text or image-based links, and when a user clicks on an ad, the advertiser pays the publisher of the site or search engine a fee.
PPC is a popular advertising model because it allows businesses to target potential customers who are actively searching for products or services that the business offers.
Pay-per-click (PPC) KPIs are set-down metrics used by digital marketers and business owners to judge the performance of their PPC campaigns.
Failure to monitor the performance of PPC campaigns could inadvertently waste your marketing budget.
Top PPC Marketing KPIs to track
1. Click-through rate:
PPC click-through rate (CTR) is a metric used to measure the success of pay-per-click (PPC) ad campaigns.
It is calculated by dividing the number of clicks on an ad by the number of times the ad is shown, or “impressions. “
A high CTR indicates that people who see the ad are more likely to click on it, while a low CTR indicates that the ad is not being seen by as many people or that people who see it are not interested in it.
There are many possible causes of low CTR, but some of the most common include poor ad quality, irrelevance to the target audience, and ad fatigue.
Additionally, if an ad is placed in a low-traffic area of a website or app, it is less likely to be seen by potential customers, which can also lead to low CTR.
How to increase your PPC click-through rate
If your click-through rates are low, there are a few key ways to increase your click-through rate. Firstly, make sure your ads are relevant to the keywords you are targeting and the products/services you offer.
Secondly, create compelling ad copy that accurately reflects what you are offering and entices users to click. Finally, make use of negative keywords to ensure your ad is not being shown for irrelevant searches.
By following these tips, you can significantly increase your PPC click-through rate.
2. Conversion rate
PPC conversion rate is one of the most important PPC metrics to track for businesses that rely on paid search advertising or Google ads.
This number represents the percentage of people who click on an ad and then take the desired action, such as making a purchase or signing up for a newsletter.
The higher the number, the more effective the ad campaign. There’s one simple reason why the conversion rate for PPC campaigns is important: it directly affects your bottom line.
A low conversion rate means you’re wasting money on clicks that don’t result in sales. This can quickly eat into your advertising budget and put a dent in your ROI.
Conversely, a high conversion rate means you’re getting the most out of your PPC campaigns. You’re acquiring new customers while spending less on each click.
Conversion rate is one of the most important metrics to monitor in any PPC campaign. Increasing your conversion rate can improve your ROI and scale your campaigns to even greater heights.
3. PPC campaigns’ average position
PPC campaign average position is the average position of a particular advertisement in search engine results pages (SERPs).
This metric is used to gauge the effectiveness of a given PPC campaign in terms of its visibility and click-through rate (CTR). A lower average position leads to fewer impressions and clicks.
To run a profitable business, you need to optimise your digital advertising campaigns. An average high position on SERP leads to more impressions, clicks and sales.
The average position is calculated by averaging the positions of all the instances where an advertisement appears on a search engine results page (SERP).
4. Return on ad spend (ROAS)
Return on ad spend (ROAS) is a metric that measures how much revenue you generate for every dollar you spend on advertising.
A high ROAS means you’re generating a lot of revenue for each dollar you spend, and a low ROAS means you’re not generating much revenue for each dollar you spend.
The formula for calculating ROAS is pretty simple:
(advertising cost / revenue ) * 100 = percent return on ad spend
Where:
Advertising cost is the total cost of the campaign, including media buying costs such as auction fees, and media plan costs.
The return on ad spend metrics should be tracked when your business goals are either sales or lead generation.
Measuring this metric will help you track your customer journey, leading to higher funnel engagement and increasing lead volume or sales.
5. Cost per click
Cost per click (CPC) is an internet advertising pricing model where advertisers pay a set price for each click on their ads.
Cost per click varies depending on the advertiser’s goals, the competition, and the keywords being targeted. Generally, the higher the CPC, the more expensive it is to run a PPC digital marketing campaign.
There are a number of reasons why it is important to track cost per click.
By tracking this metric, businesses can better understand the effectiveness of their online advertising campaigns and make necessary adjustments to their marketing strategies.
Additionally, cost per click can provide insights into which keywords generate the most clicks and conversions, helping businesses focus their budget on the most effective keywords.
6. Cost per acquisition
PPC cost per acquisition (CPA) is an important metric for measuring the effectiveness of your PPC ads and ad relevance in your industry.
CPA measures the cost of acquiring a new customer through your pay-per-click advertising campaign and is calculated by dividing the total cost of your PPC campaign by the number of new customers acquired.
To maximise the effectiveness of your PPC campaigns, it is important to keep your CPA as low as possible.
The CPA is an important metric for advertisers because it allows them to compare the cost of their campaign with the number of leads or sales that they generate.
Advertisers can use the CPA to determine whether their campaign is cost-effective and whether they are getting a good return on their investment.
There are a number of ways to reduce your CPA, including optimizing your ad campaigns, targeting more relevant keywords, and improving your landing pages.
7. PPC Campaign Quality Score
PPC quality score is a metric used by Google to measure the quality of a given advertisement.
A high-quality score means that your ad is relevant and useful to users, while a low-quality score indicates that your ad is not as relevant or useful.
Quality score is one of several factors that Google uses to determine the placement and cost of your ad.
Additionally, having a high-quality score can help improve your click-through rate (CTR), which is the percentage of users who click on your ad after seeing it.
A higher CTR means more users find your ad relevant and useful, which can lead to more conversions.
If you want to improve your PPC quality score, there are a few things you can do:
1. Make sure your ad is relevant to your target keywords.
2. Use relevant and targeted ad copy.
3. Make sure your landing page is relevant to your ad and offers a good user experience.
4. Use relevant and targeted keywords in your ad groups.
5. Monitor your quality score regularly and make changes as needed.
8. Number of impressions
The number of impressions is a measure of the number of times an ad or other item is seen. It is used as a way to assess the effectiveness of advertising and other forms of funnel campaigns.
The number of impressions is an important metric to track because it tells you how many times your content has been seen. This is important because it allows you to gauge the reach of your content and see how well it is performing.
Additionally, it can help you identify any potential issues with your content or strategies so that you can make necessary changes.
9. Customer lifetime value
Customer lifetime value (CLV) is a metric that represents the total value of a customer to a company. This can be calculated by taking into account factors such as customer acquisition costs, retention rates, and average revenue per customer.
CLV is important for businesses to understand because it informs them of their full customer journey allowing them to make decisions about marketing and product development strategies based on sales data.
As a business owner, knowing your customer’s lifetime value (CLV) is important. This metric tells you how much revenue a customer is worth to your business over the course of their lifetime.
It allows you to create a marketing budget that supplements your marketing efforts. CLV is a valuable tool for making marketing and sales decisions, as it can help you allocate your resources more effectively.
Knowing your customer’s lifetime value can also help you identify and target high-value customers.
10. Average session duration
The average session duration for a pay-per-click campaign can be a useful metric to track. This metric can give you insight into how long users are spending on your site, and whether or not they are finding what they are looking for.
A high average session duration indicates that users are finding your site useful and engaging, and is a good indication that your marketing campaigns are performing well.
If your average session duration is low, it may indicate that your site is not providing the content users are looking for. There are a number of ways to improve your average session duration.
One way is to make sure that we have compelling content on our site. People will stay on our site longer if our content is interesting and engaging.
Another way to improve our average session duration is to make it easy for people to navigate our site. If people can easily find what they’re looking for, they’ll be more likely to stay on our site or landing page.
Finally, we can also use marketing techniques to keep people on our site longer. For example, we can display related products or content after someone has viewed an item on our site.
Using these various strategies can improve our average session duration and keep people engaged with our site.
How to Set Realistic PPC Marketing KPIs
If you’re running a pay-per-click (PPC) campaign, setting realistic key performance indicators (KPIs) is important.
By setting KPIs that are achievable, you can measure the success of your campaign and make necessary adjustments. Here are some tips for setting realistic PPC Marketing KPIs:
Know your goals:
What are you trying to achieve with your PPC campaign? Make sure your KPIs are aligned with your goals.
Do your research:
Look at your past performance and the performance of your competitors to get an idea of what’s possible.
Be realistic:
Don’t set unattainably high KPIs to please your boss or clients. Set KPIs that you know you can hit. By following these tips, you can set realistic PPC Marketing KPIs that will help you measure the success of your campaign.
As a digital marketing expert or store owner, it’s important to set KPIs (key performance indicators) for your business in order to measure success and track progress.
But it’s also important to ensure those KPIs are realistic, or you’ll likely become discouraged when you don’t meet them.
So how can you set realistic KPIs for your existing campaigns?
Here are a few tips:
- Do your research Before setting any KPIs, it’s important to do your research and understand your target audience, your product, and your industry. This will help you better understand what’s realistic to achieve.
- Set achievable goals Once you have a good understanding of your business, it’s time to set some goals. Make sure those goals are achievable, or else you’ll just be setting yourself up for disappointment.
- Track your progress As you work towards your KPIs, it’s important to track your progress so you can see how well you’re doing. This will help you adjust your goals as needed.
- By following these tips, you can be sure to set realistic KPIs for your Shopify store that will help you measure success and track progress.
Measuring PPC Marketing KPIs: How to get started
As a digital marketer, you know that Pay-Per-Click advertising can be a great way to drive traffic to your website. But how do you know if your PPC campaigns are truly successful?
The answer lies in measuring the right KPIs. There are a few key things to keep in mind when measuring PPC metrics.
First, you need to set up tracking for your campaigns. This can be done through Google Analytics. You can also use a free reporting tool to track your data and other PPC metrics.
Once you have tracking set up, you can start to measure various KPIs, such as click-through rate, conversion rate, and cost per conversion.
The Click-through rate is a good indicator of how well your ads are performing. If your click-through rate is low, it may mean that your ads are not relevant to your target audience.
Conversion rate is another important KPI to measure. This metric tells you how many people who click on your ad actually go on to purchase something from your website.
Finally, cost per acquisition is a helpful metric to track because it allows you to see how much you are spending on each individual conversion.
Track your PPC Marketing KPIs with Porter
Porter is a fast and reliable no-code reporting tool for marketers. It allows you to prepare your PPC reports in less than 90 seconds.
With porter, you get instant access to 80+ customizable templates for reports, and 600+ custom metrics to allow you to track your PPC and Google ads performance.
Unlike other tools requiring complex integrations, porter doesn’t require buggy integration. You can easily track key metrics using Porter and visually appealing reports in less than 5 minutes.
Conclusion – 10 PPC KPI Metrics
Analyzing PPC metrics is key in optimizing your digital marketing campaigns. The right KPIs allow you to measure sales, monitor trends, and ensure that the wrong metrics aren’t tracked.
For eCommerce companies, PPC campaigns play a huge role in brand awareness. This could lead to an increase in branded search volume over time.
It is best practice to track your PPC campaigns regularly and use that data to take actions that boost your business performance going forward.
In a nutshell, the top 10 PPC KPI Metrics include:
- Click-through rate
- Conversion rate
- PPC campaign average position
- Return on Ad Spend (ROAS)
- Cost per click
- Cost per acquisition
- PPC campaigns quality score
- Number of impressions
- Customer lifetime value
- Average session duration
Tracking these metrics, allows you to grow your e-commerce business faster while saving costs.
Frequently Asked Questions (FAQ)
How do you measure the success of PPC campaigns?
There is no one answer to this question as it depends on the specific goals and objectives of the PPC campaign in question.
However, some common metrics used to measure the success of PPC campaigns include click-through rate (CTR), conversion rate, cost per conversion, and return on investment (ROI).
How can I reduce my PPC cost per acquisition?
PPC cost per acquisition can be reduced in a number of ways. One way is to improve the quality of your website traffic by targeting keywords that are more relevant to your product or service.
Another way is to increase the conversion rate of your website visitors by optimising your website for lead generation.
How can we improve our average session duration??
There are a few things that can be done in order to improve the average session duration. One is to ensure that the site’s content is engaging and relevant to the user.
Another is to make sure that the site is easy to navigate and use. Finally, it is important to make sure that the site loads quickly and is responsive. By doing these things, users will be more likely to stay on the site longer and Engagement will improve.
Can I drive foot traffic to my store with PPC campaigns?
Yes, you can. Foot traffic driven to your physical store can also be tracked using Porter.
How do I track branded search terms for my business?
Monitoring branded search volume trends for your business is important in creating irresistible offers for your ideal audience. You can track branded search terms for your business in a few different ways. One way is to use a tool like Google Analytics.
You can also set up Google Alerts to get notified whenever someone mentions your brand online. Finally, you can also check social media channels like Twitter and Facebook to see if people are talking about your brand there.
