PPC Campaigns: Most Important KPIs You Should Be TrackingPPC
Every brand and marketer must know the importance of KPIs in PPC campaigns to see the results of their efforts. To build a strategy for KPIs, always start from the basics and understand your objectives. How are you planning to achieve them? What information does It require in the process?
What is KPI?
Key Performance Indicator is a value that helps in knowing how effectively an organization is achieving its objectives. They focus on the performance of the business in various departments like marketing, sales, and HR.
They will focus on the operational and strategic improvement of the business. It will include setting targets and track the progress to achieve them. Some key points of a good KPI are:
- Provides evidence of progress to achieve the desired outcomes
- Improves decision-making by measuring the correct information
- Compares the performance of business currently and in the past
- It tracks effectiveness, timeliness, behaviour, performance, resource utilization, efficiency, quality, landing page engagement, and governance.
- Maintains a balance between lagging and leading indicators
How PPC Campaigns Depend on KPIs?
Pay-Per-Click campaigns play a vital role in boosting the performance of businesses. The goal of each PPC services in Australia in the planning phase is to generate more revenue with the PPC campaigns. Even while setting up a campaign for small businesses, you must know certain things. These include monitor, track, and update specific Key Performance Indicators.
We will provide you with metrics that are essential to measuring the performance of PPC campaigns:
These are the most critical section of determining the effectiveness of PPC campaigns. It all comes down to the number of clicks on your business advertisements. This is the most straightforward and commonly used metric to identify the performing and non-performing ads.
The count of clicks that your advertisements receive against the number of times the visitors viewed them. For example, if your PPC campaign ad gets 100 impressions and clicks only 10 times, your CTR will be 10%.
3. Cost per click
This is the amount that the business owner has to pay for each advertisement. This is easily calculated by dividing the cost of the campaign by the number of clicks received. The CPC rate must be lower for better PPC campaigns.
4. Quality Score
This metrics help to know how relevant is the ad content to your business. It uses various factors like CTR, ad format, ad relevance, and landing page experience. Google has reported that a good quality score should lie between 7 and 10. PPC services Australia will help make strategies where you pay less to the advertisers but gain more conversions.
5. Conversion Rate
This helps in determining the success of your PPC campaigns. It is the average number of clicks that are converted into customers or leads. It would be best if you had higher conversion rates to boost the sales of your business.
6. Impression Share
This is the number of times a visitor views your ad. It doesn’t imply the relevancy or Click-Through-Rate but gives an insight into the reach of your PPC campaign. Impression share metrics are helpful for brand awareness which helps in knowing the product and brand value.
7. Average Position
This will tell the rank of your advertisement among the other ads in the search engines. This is calculated by multiplying the cost per impression with the quality score of your ad. You can get a top position by increasing your bid, which will improve your quality score.
8. Bounce Rate
This refers to the visitors who view your landing page or stayed for a less time on the website. The bounce rate of PPC campaigns is when compared to other channels, helps in understanding the quality of paid campaigns.
9. Average Page Views in Each Visit
It is the cost paid for each page view you get from the PPC campaigns. This analysis helps in measuring the budget which is invested in the PPC to increase brand awareness.
10. Customer Retention Rate
This will tell you the customer loyalty gained through your PPC campaigns. The Customer Retention Rate will help in identifying how long the customers will stay connected with your business. If you have higher conversion rates, you have quality PPC campaigns running in the market.
11. Keyword Performance
This count helps in knowing about the keywords:
- Lowest, best, and highest CPC
- Higher conversion rates
- Which one is good for branding
This will help you to the strong keywords that are affecting the business performance in the market.
12. Lifetime Value
It is an indicator of the account’s health and the PPC campaigns ability to stay in the market. It might be a complicated process to calculate the lifetime value, but it is highly significant for businesses. You can reach out to the best SEO company Australia for this process when you feel it isn’t your cup of tea. LTV reflects the revenue generated from the PPC campaigns.
PPC campaigns are not something that goes live once and then is forgotten. You need to check their performance regularly to avoid wasting your money in the wrong section. Keep an eye over the above KPIs for better results. Still, can’t understand your store performance? Contact us now! We have the right amount of knowledge and the best strategies to boost your sales effortlessly.