Pay Per Click (PPC) campaigns are designed for various outcomes – to achieve revenue boosts, traffic, brand awareness or to announce arrival. So, it is very important that the right key performance indicators (KPIs) be used to measure the success or failure of a PPC campaign.
These KPIs depend a lot on what the goal of the PPC campaign is, which means understanding every KPI and choosing the right KPIs that match the campaign is important while planning the PPC campaign, opine experts from leading PPC advertising services in Hyderabad.
This also means you should set up Google Analytics and Google Ads accordingly, so you can stay right on track.
Let’s take a look at these most popular PPC KPIs that we most frequently come across:
- Clicks: is the number that tells you how many times an advert is clicked.
- Cost per Click: is the cost you incur per click.
- Click Through Rate (CTR): is the frequency with which the advert is clicked
- Conversion rate: is how many times a click converts into revenue
- Cost per Conversion: is cost incurred for each conversion to revenue
- Return on Ad Spend (ROAS): The holy grail of digital advertising – this determines how much profit or loss is made to amount spent on the campaign.
- Quality Score: is a Google score which is calculated by weight ages assigned to quality, keywords, and content.
These KPIs in combination with others can be broadly classified, based on the goal of the PPC campaign as under:
KPIs For PPC campaigns focussed on Lead generation
If the goal of your PPC campaign is getting leads and converting them into sales, the following KPIs should centrally be:
- Conversions: tells you which clicks are being converted into actions that add value.
- CPA: Cost per action depending on what you want the action to be – a lead, a purchase or a conversion.
- Impression share: Ads make impressions. The impression share tells you that out of those, how many are related to your targeted keywords.
- Conversion rate: is the number that tells you that of all the clicks that the advert git, how many actually converted into actions.
- CTR (click-through rate): This KPI tells you that how many people out of everyone who saw your advert actually clicked on it.
KPIs For PPC campaigns focussed on Brand Building
The goal of the PPC campaign could be building a brand or generating brand awareness, or launching a new product. In this case the focus is lesser on revenue, and more about how much attention could be garnered. The KPIs therefore would include:
- Impression share: If your brand is creating impressions, the impression share gives you an idea of how many you have secured.
- Impressions: A metric that tells you how many times your advert was featured
- Views: Featuring and being viewed are very different. Views tell you how many time the ad was actually seen.
- Brand lift: A crucial KPI, tells you how much positive impact the PPC campaign has generated.
- CTR: CTR is a parameter that gives you the number of times your ad went through – how many times the ad was seen to how many times it was clicked upon.
Irrespective of the nature of the PPC campaign a few KPIs are great indicators of value addition.
Quality Score is a metric created by Google Analytics that tells you the quality of your ad. It uses CTR, and other weight assigned performance variables to generate a quality index.
This is vital irrespective of the nature of the campaign because the quality score is directly proportional to the amount you spend on a click. Higher the quality score, (>7) the lesser you pay per click.
Life Time Value or LTV is a broad qualitative indicator value added by the PPC over a consumer’s brand association lifetime.
This is quite complex, and involves multiple parameters to arrive at the real LTV to the business. It is quite useful especially in brand looking for long term associations, returning customers or building consumer loyalty.
Return on Advertising Spend (ROAS):
Return on Ad Spend, or ROAS, sometimes referred to as Return on Investment or RoI is the return in terms of sales, revenue or brand recognition you receive from that particular PPC campaign.
This is very important irrespective of the nature of the campaign, because it can singly tell you whether you are gaining or losing revenue, and whether you should tone down or scale up the campaign.
Making sense of the PPC KPIs:
Please remember that there is no one size fits all matrix when it comes to PPC campaigns. KPIs cannot be taken on their individual merits alone to indicate success or failure, says a leading Digital Marketing Agency in Hyderabad.
The aim should be understanding the impact of the campaign while keeping in mind that all parameters are inter related.
You must also take care not to confuse the outcome by generating a report on every possible KPI. You should definitely have a fair idea, but it is smart to choose KPIs that matter to the final outcome of your PPC campaign.
The rule is simple. Have a clear idea of what you want to measure, how you want to measure, and what KPI you will use to measure it. Simple, clean analytics are the best, and remember PPC is ultimately a booster shot marketing campaign