Quick Summary: Tracking success has become vital for any business to compete in the market. Thus a lot of tools like Google Analytics are available that can define your metrics & key performance.
Key Performance Indicators, PPC has become a fundamental aspect to track the performance of your paid ads & improve them. The clear metrics help businesses in better planning & marketing.
The goal of every PPC Advertising must match different KPIs during your planning phase. Knowing what your campaign is trying to attain and measuring the achievement will allow you to set up Google Analytics and Google ads ahead of time.
Measuring all KPIs and analyzing each one in your marketing strategy can sometimes be frustrating. Thus, understanding these Key Performance Indicators is all you need to know to measure your ads. When in doubt, you can always consult a Paid marketing Agency for advice.
Starting with a Click, which is the basic and an initial indicator of a visitor on your PPC campaign. Through the number of clicks, you can judge whether the ad is getting successful or needs improvement.
Paid marketing agencies tend to pause those ads that are not performing well or giving expected clicks. However, they are not solely responsible for determining campaign success.
Equivalent important as Clicks, CTR measures the number of clicks your campaign gained. You can measure the Click Through Rate from dividing the number of clicks of your campaign obtained in a month by the total impressions or clicks.
CTR helps you measure the key performance, however, PPC performance differs from industry to industry. Benchmarking and improving your CTR improves campaigns and also affects the other KPI like the Quality Score.
A brilliant tool created by Google to check the relevancy of your content. Quality Score is hard to cage, yet it is a great metric to check performance variables.
Because this KPI doesn’t come up straightforward, unlike impressions & CTR, thus advertising experts find it difficult to measure the QS. Google is very transparent in measuring the Quality Score. This popular Search Engine says a good quality score must be between 7 to 10, which also benefits you to pay less for the Google Ads.
Ads are flexible to create as per the business’s budget. However, just specifying a budget doesn’t mean that you have to pay all of it. PPC auction is what determines the need for payment. CPC measures how much advertisers pay. However, the CPC works on bidding, where advertisers compete with their contenders for ad positions.
You can easily measure your CPC by dividing the total cost of the campaign by the number of times the ad was clicked. Another way to measure CPC is by multiplying the cost of campaigns by the number of clicks.
Alike CPC, CPA can also be set up in your PPC advertising. An average CPA is easy to set, however you can make use of the targeted CPA as well. A targeted CPA is a bidding technique used by the marketing agency to automate bids to retrieve as many conversions as they can.
Only those with a thorough understanding of bidding strategies, set up conversion tracking, & capable to have 30, minimum, conversions a day can use Targeted CPA.
Google shares how you can calculate your CPA – by dividing the total cost of conversions by the total number of conversions. Google, however, determines CPA through analyzing your Quality Score.
The reason for hiring a Paid Marketing Agency is giving a higher conversion rate for their business. Thus, marketers always keep track of clicks for conversion, which is why they often set up campaigns to optimize their clicks.
Advertisers also aim for conversions through CPA. In order for you to focus on conversions instead of impressions, you must have an account with Google Ads and should be able to get 15 conversions in a month.
To measure Conversions, divide the number of conversions the campaign received from the total clicks.
Your ad reaching the targeted audience is essential. After viewing the ad, then only will they decide whether to move ahead with the product in the given ad or let it go. Impressions portray the total number of visits your ad campaigns are reporting.
Impression carries data available for groups, campaigns, product groups, and keywords. Various factors make up a reliable impression, such as targeting settings, approval statuses, and quality. You can obtain impressions by dividing the total number of impressions that were eligible for & the number of impressions it received.
Impression share gives marketers indirect competition insights. In order to increase the impression share that you hold, you need to increase the bids or budgets.
A basic rule in the rule book of Google is to provide a chance to everyone. Thus, the search engine balances the paid as well as organic for every search query.
So, you may see ads placed on the top and bottom of the SERP. The average position of the ads is the information about the placement of the ad.
Ad rank by Google is calculated by multiplying the Quality score by Cost per Impression (CPM). However, getting to 1st position doesn’t mean results, sometimes, advertisers ads may be positioned at 4 and still be able to generate conversions more than the one resting on 1st position.
Paid Marketing Agency runs successfully from obtaining a favorable outcome from their ad campaigns. Some advertisers may not consider the attainment of budget, as they rely on the performance of their PPC.
The pain for biding now and then is the reason why marketers do not consider budget attainment. Another challenge with Budget attainment is the fluctuations in the PPC auction yet proving to gain maximized results & optimizations.
However, it is a very difficult KPI to consider, but it is worth considering. So, businesses must closely analyze the budget achieved with the set target.
There are other KPIs that could be considered, such as LTV, Lifetime Value. However, calculating a customer’s lifetime value is the most complex task, which must be left in the hands of a Paid Marketing Agency.
To have a profitable PPC Advertising, you must focus on improving CTR and Quality Score, which can improve CPC & CPA parallel. Thus, KPI must be assigned to a campaign based on what is making the most sense and relatable to the client & their goals.
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