How to Measure Your PPC Campaign

Starting a PPC campaign is not an end in itself. Sufficient time and resources should be devoted to monitoring performance over a period of time. As with any other marketing initiative, you also need to measure and analyze your effectiveness to make sure you’re getting the most out of your investment.

View the campaign at the macro level

When setting up a PPC campaign, it is important to think about the long term. If you look further, you will discover how important it is for your PPC project to have enough time to grow before evaluating it.

For example, a week is not enough to measure the success of your campaign, and even if you’ve noticed significant changes in the short term, you probably wouldn’t mind. You cannot compare a week-long campaign to a month-long campaign.

Due to the nature of PPC campaigns, you cannot simply abandon a project because it has not reached the desired ROI limit. Don’t try to guess your campaign until you have time to evaluate it. Remember, this is much more than ROI.

You can reap huge benefits, even if a campaign’s financial return is stagnant. So, instead of focusing on a specific benchmark, you should analyze all the available data and measure the effectiveness of your campaign using different key performance indicators (KPIs).

Compare the results with the objectives

Before running your PPC campaign, you must first set specific goals.

You need to understand how you will measure your progress, that is, how close or far you are to reaching your goals. Your goals may be different from other brands, but they are good. After all, priorities vary from company to company.

However, you need to determine what is most important to you:

  • Is branding your main concern?
  • Do you want to convert sales or leads?
  • Are you determined to drive new traffic to your website or blog?
  • Does your PPC campaign have the main objective of maintaining a competitive advantage through SEO (Search Engine Optimization)?

While all metrics are important, your goals determine what to focus on first. These are the determining factors in measuring the success of your PPC campaign and can help you take action if you don’t like the results.

Evaluation of KPIs and other campaign data

After giving your PPC campaign enough time to grow, it’s time to review your KPIs and analyze the wealth of information at your fingertips. There are a wide variety of tools and statistics that you can use to measure the effectiveness of your campaign. Familiarize yourself with them to determine what is most important to your campaign.

1) Click-through rate

The click-through rate (CTR) is one of the most observed metrics by PPC experts. You can calculate this by dividing the number of people who click on your ad by the number of people who see your ad (shared click for impressions).

A good CTR means that your target audience found your ads useful. As a result, your Quality Score will skyrocket, while your cost-per-conversion (CPC) will decrease. This gives you more options to increase your overall conversions if you lose to your competitors.

2) Quality score

Quality Score is a good indicator of whether your keywords, ads, and landing page generally perform well. It provides insight into how Google sees your ads, and the more relevant your keywords are to user searches, the higher your Quality Score.

A high-Quality Score means that your ranking has improved, your CPC has dropped, and your overall ROI has increased. As a result, the more people who see your ads, you pay less when someone clicks on them.

3Cost-per-conversion

Cost-per-conversion (CPC) is important in determining how much you need to spend to acquire a new customer.

If your campaign costs more than you earn with a new lead, don’t use your budget wisely. Track your CPC to find out how to improve your campaign. Use the data in this benchmark to adjust your strategies and reinvest in what works.

4) Search by impression share

The search engine impression shows the percentage of the total number of times your ad has been shown in relation to the actual number of times it has been viewed.

A section illustrates the percentage of searches lost due to budget. Obviously, a low score on this benchmark can negatively impact the overall performance of your PPC campaign.

5) Bounce rate

The bounce rate can indicate certain aspects of your campaign that need to be optimized.

This measure is measured by the number of visitors who visit and leave your site without responding to your call to action. If your campaign has a high bounce rate, it means that you are targeting a large audience, many of whom are simply not interested in what you are offering.

It is important to evaluate your PPC campaign to find out which component works and which one you need to reconfigure. Make sure you understand the different metrics so that you can judge whether your campaign is effective or not. Don’t be discouraged if you find room for improvement – see each gap as an opportunity to take your campaign to the next level and expand your brand.