How to measure the success of PPC campaigns
Measuring the success of your PPC campaigns can be quite challenging if you lack clear and actionable metrics. Without the right KPIs, you can’t know with absolute certainty whether your paid advertising campaigns or business initiatives are really working.
This lack of clarity can lead to wasted effort and opportunities, as well as choosing the wrong goals. So you or your marketing team can be confused about what’s working and what’s not. Create alignment, improve jason chitwood director of database marketing performance, and drive measurable growth. How to do it? Focus on the right KPIs for paid advertising.
Check out these five KPIs (suitable for each area) to help you stay on track.
1. Cost per click (CPC)
Formula:
- CPC = total cost / total number of clicks
CPC doesn’t show overall performance, but it can be a great early indicator of the factors affecting your paid advertising campaign. A rising CPC can indicate higher bids for your target keywords and increased competition. This can help you assess how well you’re maintaining your position in the market and how you stack up against your competition.
While CPC is not a primary KPI, it is a great tool for measuring competitive keywords and adjusting your targeting strategy as needed. To stay ahead of the competition and save yourself a lot of money and usa data time, track CPC over different time periods (ideally, track CPC week by week, month by month, or quarter by quarter).
What is it good for?
- You will better understand the fluctuations of general search engine results pages (SERPs) and the change in competition over time.
- You’ll find out how your paid ads are performing in season, during times of increased interest from your customers, or how you’re performing against your competition. This will help you become proactive in the present and better respond to competitor behavior.
2. Impression Share (IS)
Formula:
- IS = total number of impressions / total number of available impressions
Impression share provides useful information about your ad performance. It shows how well your ads are performing against your competition, especially when combined with other metrics.
A low proportion may mean that:
- Your ads are limited by budget (check your auction statistics).
- Your ads are of low quality (check your Quality Score and CTR).
“Lost in ranking” impression share may indicate a need to improve ad quality or adjust your bid.
“Lost on budget” impression share can highlight the need to assess budget allocation and ensure you’re reducing irrelevant spend.
3. Click-through rate (CTR)
Formula:
- CTR = clicks / impressions
CTR is a simple metric that can tell you a lot about the performance of your paid advertising campaigns . It’s a pretty good measure of engagement and shows you whether your targeting, messaging, landing pages, or offers are meeting your audience’s needs.