The vast amount of data that PPC campaigns provide is one of the main benefits. This is your key to a better understanding of your campaign, target audience, customer satisfaction, success and failures, and more to hone your next approach!
With so much information at your disposal, and many different PPC trends to consider, which PPC metrics are the best to use, and how do they help improve your campaigns?
These are the 8 Key PPC Metrics You Need to Follow
Impressions and clicks are the most important metrics, especially when you’re trying to increase brand awareness. The first step in the sales process is the paid ad click. This is directly proportional to the amount of money you spend.
You are trying to identify trends and variations in clicks that may indicate problems or opportunities. For example, if clicks are on the rise, it may be time to up your budget on keyword bids (something that can be done automatically with AI). Clicks that are low may indicate problems with your chosen keywords or the ad text. You might also need some help boosting your customer support skills to encourage quality traffic.
Cost per Click (CPC)
They can provide valuable information about trends, just like clicks. CPCs are determined by the competition of your keywords. If they rise, you should use longer-tail keywords to attract more targeted traffic. To remain competitive, you can increase your maximum bids for important keywords.
CPCs can help you set your budget. Consider your average click cost, your average conversion rate (for which we have some great strategies), and your sales goal per month (clicks x conversion rate = sales).
The percentage of impressions that your ads receive is called impression share. If your keywords were searched 1,000 times and your ads were displayed 700 times, you would have a 70% impression sharing.
Google offers two categories for lost impressions:
- Budget-related losses can lead to financial loss
- Losses due to ad rank
This information will help you decide if you should raise your budget, increase your bids or improve your quality scores to get a better ad position.
The conversion rate
Businesses strive to convert customers. Trends are crucial here. Variations in conversion rates may be seasonal or due to industry changes. Improving your interactions with customers helps to boost your conversion rate, but sometimes you may notice a dip.
These are our top tips to investigate a drop in conversion rates.
- Verify that your tracking code is working.
- Ensure that all URLs to the destination are functional.
- To ensure that your ads appear for non-related searches, review search queries.
- Be sure to check that the copy of your ad isn’t outdated.
- Verify that your ads and keywords are approved.
- Make sure you understand that positive and negative keywords are not in conflict.
- Ensure that you optimize your conversion rate regularly.
Cost per Conversion
You need to determine your cost per conversion. Consider your profit margins as well as the lifetime value of your customer.
Consider, for example, how likely is it that your clients will need to repurchase your products every few years? Is your customer base growing? A high cost per conversion may be worth it if so. It is also worth looking at your lead generation strategy and deciding if it needs to be updated.
Click-Through Rate (CTR)
This metric allows you to understand your customers and tells you what works with them. A low CTR could indicate that you are not targeting the right audience or that your language is not clear enough to convince them to click.
These can vary greatly at different times of the week. You can evaluate them by keyword or ad level. To save your sanity, these should be evaluated on a monthly basis.
Keep in mind that the quality score is calculated on:
- The CTR of your keyword in the past.
- Your total account.
- Your landing page’s quality.
- Your keywords’ relevancy when compared to your ad text or the user’s searches.
Google considers your quality score and keyword’s bid amount when positioning your ad. Sometimes, a higher quality score can mean jumping over a competitor’s ad with higher bids.
Google uses this method to ensure that those who pay more don’t get the best ad spots. It is not the most effective search engine that creates the best user experience. Your quality score will increase if you are able to hit the mark on a keyword and deliver a high-quality, relevant ad for the right audience.
These are our top tips to improve your quality:
- Make sure your ad groups are well-organized.
- Landing pages should include lots of keywords, which are relevant to the product being promoted.
- Include keywords in your ad copy.
- Include a call-to-action (CTA), and be clear about the value proposition.
Total Conversion Value
To compare campaigns, ad groups, and keywords, use your Total Conversion Value. This is useful for determining if shoppers are more likely to spend on certain products than others. This allows you to determine which product is more profitable and which one to avoid. This can also be helpful when you’re considering a retargeting strategy.
Pay attention to the metrics
These are some key eCommerce PPC metrics that you should pay attention to. If you want to create more successful campaigns, data is your friend. This goes for ads, social media video posts, and any other online content you create. Good luck!
Mike Patel is a digital marketing enthusiast, innovator and President of a leading Digital and E-commerce Development Agency in Dallas, Texas. Mike holds a BS, Computer Science degree from Wayne State University and is a key player in the E-commerce development and digital marketing industry since 2004. The scope of technology in his extensive experience of more than 15 years ranges from Magento, Shopify, BigCommerce SEO (Search Engine Optimization), PPC (Pay Per Click) management, E-commerce SEO, Google Shopping Ads and more.