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If you’re going to invest time and money into a pay per click (PPC) campaign, it is important to know how successful it is. Fortunately, PPC tools make it relatively easy to measure your success. Because there are so many metrics that can be used however, you might need some help in knowing where to start.
While there is a whole array of metrics that you could be looking at, there are a few key ones that are musts for a good PPC campaign analysis.
This is what Google uses to measure how relevant your keywords are in comparison to your ads. Factors which are taken into consideration for quality score are click-through rate, relevance of the keyword to the search and the quality of your landing page.
A good quality score is also a key factor in determining your ad’s search rankings as well as how much you will pay for each click.
This is probably the most actively monitored metric when it comes to PPC advertising. This is because it helps you determine your quality score and also because a poor click-through rate is likely an indication that you either your keywords or PPC ad (or both) need some work.
Since the ultimate goal of your PPC campaign is conversion (getting people to buy from you), it makes sense that you’ll want to monitor your conversion rate. If you are getting high amount of clicks through but low conversion, it could be an indication that your ad is compelling but your landing page not delivering.
A PPC ad may land you a new client, but how much did you have to spend to gain that new client? If your campaign costs you more than you earn from any new clients you attract, it has not been money well spent. On the other hand, you may net a profit from the PPC campaign but perhaps it is not a large a profit as other marketing efforts. By keeping track of cost per conversion, you can work on improving your PPC campaigns in the future to drive this cost down and improve your bottom line.
This metric is essentially the opposite of conversion rate – it is the amount of money that you are essentially throwing away because people are clicking on your ad and then not converting. One way to minimize wasted spend is to create negative keywords – that is to prevent your ad from displaying when certain irrelevant words are used in the search query.
Every marketer has their own goals and these goals may even vary between campaigns. The first step is to familiarize yourself with PPC metrics tools and then to determine which metrics are most important to your business or to your particular campaign.
Do not wait until the end of a given campaign to track your results, but rather track them throughout the duration of the campaign. This will give you the opportunity to make changes and improvements along the way and maximize your chances for success.