Metrics Of Success for Your PPC Campaign
One major difference between Pay-Per-Click (PPC) advertising and Search Engine Optimization (SEO) is the amount of time required to see fruition of your efforts. With SEO, it is standard to wait a few months to see an impact of work completed. When launching a paid search campaign, sometimes only a few weeks are necessary to measure the success of a PPC campaign.
There are many very important metrics for measuring the success of a PPC campaign, including:
1. Quality Score
2. Click Through Rate
3. Bounce Rate
4. Conversion Rate
There are other important PPC metrics, and these are easy ones to check while monitoring an ongoing PPC campaign.
Quality Score is a metric that is very important to any PPC campaign. This metric is specific to paid search and is a measurement of how relevant your advertisements, keywords and landing pages are to an individual viewing your advertisement. Quality Scores are assigned to every keyword you are targeting in a PPC campaign. It is calculated anytime one of your targeted keywords is triggered by a customer’s search. The more relevant your targeted keyword is to that customer’s search query, the higher your quality score is.
There are a few factors that affect quality score, including:
· Click Through Rate
· Ad Relevance
· Keyword Relevance
· Landing Page Experience
· Account History
· Geographic Performance
Google doesn’t tell us much about Quality Scores, but there are a few things we do know. Quality Scores affect your ad position for any given keyword. Additionally, the higher a Quality Score is for a keyword, the lower the average cost will be for a click. Quality Scores are evaluated for both the Search and Display networks. The biggest advantages to a high Quality Score is the lower cost and better ad position, meaning more people will see your advertisement and you will pay less when they click on your advertisement.
Click Through Rate
Click Through Rate is a ratio of the number of individuals who see your advertisement in relation to the number who actually click on it. The number of times your advertisement is shown is called Impressions. Click Through Rate is the number of clicks on your advertisement divided by the number of Impressions for that advertisement. A good Click Through Rate means that your target audience found your advertisements helpful and relevant.
Click Through Rate is an easy way to gauge the success for various advertisements and keywords and to show you areas for improvement. The more relevant your keywords and advertisements are to each other and your business, the higher your overall Click Through Rate will be. Since Click Through Rate is a metric that affects the Quality Score of your targeted keywords, it is important to track this metric over time. As your Click Through Rate increases, your average Cost Per Click should decrease.
Conversion Rate is the metric of how often a click on your advertisement led to a conversion. Conversions can be measured as anything important to your business. This includes any desirable action on or off your website, including: completed contact forms, a phone call to your business or a sign up for a newsletter. Conversion Rate is calculated by dividing the number of clicks to your advertisement by the number of conversions received from that advertisement. Conversion Rate is best tracked by installing Conversion Tracking. Conversion Rate is important to track over time to watch for seasonal trends. You may find that over the life of your PPC Campaign, certain months convert better than others.
Our PPC team at Full Media recommends linking Google Analytics and Google AdWords. By linking these accounts, data from Google Analytics will pull into Google AdWords. An important metric tracking in Google Analytics is Bounce Rate. Bounce Rate is measured as the number of visitors who visited your site and did not complete a desired action on your site before returning to the Search Engine Results Page. With data from Google Analytics, you can see very granular information including bounce rate for targeted keywords. This can help you select which keywords to target and which match type works best for your PPC Campaign.
Monitoring these metrics can help you optimize your PPC Campaign on an ongoing basis. These are metrics that we consider during ongoing optimization in order to make the best decisions for any budget.
For more information about Full Media’s Pay Per Click Advertising Management, contact us today.