Pay Per Click Key Performance Indicators (PPC KPI’s)
Key Performance Indicators
As a Pay Per Click account manager I use various metrics to track the success of any given campaign dependent on what that campaign is trying to achieve and also what stage that campaign is in relation to the maturity of the campaign.
For many small business owners new to the concept of PPC advertising this may sound complicated and in its essence it is however, I believe I can break it down to give a clearer insight so that you can judge for yourself and keep close tabs on your PPC campaign.
Quality Score
First of all you may have encountered the term Quality Score (QS). Quality Score Does what it says on the tin, in that it scores the quality of your advertising out of ten. The quality of your advertising in the first instance is judged based on your keywords relevancy to the ad you are placing and the relevancy of that ad to the page on your website you are directing traffic to (Landing Page). Already you can see from the offset that the key is relevancy and PPC advertising holds this theme throughout it’s entirety.
Click Through Rate
Looking at the AdWords interface or at any reports you may have received form an appointed account manager you will see a metric labeled CTR which stands for click through rate. Producing a high click though rate as soon as you start your campaign is absolutely crucial to all PPC Campaigns future success
Click Through Rate Explained
Click Through Rate (CTR) is the Clicks on your ad divided by the number of times your ad has been shown (impressions). This is important because this also shows relevancy as the least times it’s shown and the more times it is clicked shows that your PPC campaign is targeted towards searchers that are interested in what you have to offer. Ultimately this will have a massive impact on your Quality Score(QS) and is the largest factor that is taken into account. The higher your Quality Score the less you will pay for your clicks because your advertising campaign is relevant and targeted towards searchers that are looking for your products or services.
The Theory Goes
The theory behind this model is that advertisers serve ads that are relevant, searchers are interested in ads that are relevant and by extension are likely to click your ad and even convert into paying customers enabling a better experience for searchers, advertiser and Google because searchers and advertisers will continue to use Google’s search engine.
Follow The Metrics
Following these metrics in the first instance will allow you to judge the performance of any new PPC campaign in the beginning stages however, don’t lose sight of what is truly a measure of success and that is your Return or Return On Ad Spend (ROAS). In my next article I will explain what metrics to measure in the next stages of your campaigns maturity,why we use them and how we use this information to apply an optimized strategy that will increase your Return On Ad Spend (ROAS).
Want to Know How This Applies To Your PPC Campaign?
If you have any questions about this article and how you can apply this information please contact me directly through any of the channels I have listed on my profile and please stop by my new blog PPSee Services for more information for small business owners involved with or new to PPC Advertising.