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How Is Your Pay-Per-Click Marketing Performing? 10 Ways to Assess

The higher the pay-per-click the more successful your marketing is. Every action taken in the campaign plan should link back to PPC. In this article at Search Engine Journal, Chandal Nolasco da Silva discusses 10 KPIs to assess your pay-per-click marketing performance.

Calculating Pay-Per-Click Campaign Success

Set up Google Analytics and Google Ads based on what you want the pay-per-click marketing campaign to achieve. Monitor progress closely right from the beginning. Following are 10 KPIs that can help you measure pay-per-click marketing performance:

Clicks: It measures how many people clicked on you pay-per-click ad. As this predicts success very early in the PPC journey, campaign managers keep a sharp eye for this KPI.

Click-Through Rate (CTR): Get this result by dividing total clicks per month by total impressions. PPC is different for different industries. For example, CTR for the auto industry is 2.14 percent while for the dating and personals industry is 3.4 percent.

Quality Score: Google came up with this complex pay-per-click KPI that measures your ad relevance. Estimated CTR, landing page experience, and ad relevance and format together form this KPI. The higher the quality score, the lesser money you pay for Google Ads.

Cost Per Click (CPC): You have a budget fixed to run a campaign. However, you may have to match up with the bid price to win the PPC auction. Get the CPC result by measuring the total campaign cost by the total number of ads clicked during the campaign.

Cost Per Conversion / Acquisition (CPA): Divide the total cost of conversions by the total number of conversions to get your result. Google determines CPA based on your Quality Score. Targeted CPA allows advertisers to set bids to get maximum conversions out a budgeted campaign.

Conversion Rate (CVR): Pay-per-click marketers are hired to analyze conversion rates. Divide the total number of campaign conversions by the total clicks and then multiply by 100. Have at least 15 conversions in a month to optimize conversions.

Impression Share (CPM): While this KPI does not predict your campaign success, it definitely reveals your competitive share. Divide total campaign impressions by the total number of eligible impressions for CPM.

Average Position: Google balances the positions of both paid and organic search results for every query. When they cannot position the highest bidder on the top, they do it based on the rank of an ad campaign. Multiply your Quality Score by an advertiser’s maximum CPM to get the average position.

Budget Attainment: As paid marketers are allotted a monthly budget, this KPI measures their success. However, pay-per-click campaigners cannot always stick to their budget because of the unpredictable nature of PPC auctions.

Lifetime Value (LTV): This complex KPI is used widely across all the departments. It talks about the health of your account and tests the strength of your PPC campaign.

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