You have a new website, the keywords have started to rank organically and, now, you want to kick off the PPC campaigns. To begin PPC campaigns for your small business, you need to know the basic KPIs’ and what they do.
What KPIs’ do you track in a campaign? How do you monitor and make the necessary changes to improve them?
Key Performance Indicators or KPIs are used in every industry to analyze the successful and the not so successful areas of work.
In PPC, you have to measure the metrics the right way to understand the returns of your investment and also to understand if your strategies are working or not.
Some of the KPIs’ to monitor is given below:
Even though clicks are considered as vanity metrics, it is definitely an early performance indicator. The clicks indicate how many people saw the ad, which ones have the lowest, which needs to be modified or paused.
2. Click-Through-Rate (CTR)
A key metric, Click-Through-Rate metric gives the number of clicks received on ads per number of impressions.
Here, clicks are equal to the number of people who clicked on the ad, and impressions are equal to the number of people who saw your ad. The CTR needs proper attention as it directly affects the quality score which in turn affects the position of the ad.
3. Quality Score
The quality score indicates how good or relevant your ad is for your viewers. The more significant the ad becomes, the better the position of your ad, leading to a minimum or affordable rates. This metric is really complicated to understand but is extremely important for PPC managers. You can measure the quality score with:
4. Cost-Per-Click (CPC)
The Cost-Per-Click metric measures how much an advertiser has paid for an ad. This KPI helps you to decide which ads are worth your money or even make better spending in the future. The formula for CPC is as follows:
5. Cost-Per-Conversion/Acquisition (CPA)
Google outlines the Cost-Per-Conversion as the cost an advertiser pays for conversion or lead acquired. CPA is based on the quality score. The conversion could be subscriptions, purchases, or even watching a video. CPC is calculated as:
Even though all KPIs might look important, it is wise to use those that make sense to your business strategies and goals. Increase conversion rates to lower your cost per conversion. Still confused? You know whom to call. We are waiting.