1. Introduction
Pay-per-click (PPC) advertising remains a powerhouse for driving targeted traffic and conversions. But how do you ensure your PPC campaigns are truly performing? The answer lies in tracking the right metrics. In this comprehensive guide, we’ll explore 11 essential PPC metrics that will help you optimise your campaigns and maximise your return on investment (ROI).
2. Conversion Rate (CR)
Our conversion rate is the percentage of visitors who complete a desired action on your website after clicking your ad. This could be making a purchase, signing up for a newsletter, or filling out a contact form.
Example: If 100 people click your ad and 8 make a purchase, your conversion rate is 8%.
Calculation: CR = (Number of Conversions / Number of Clicks) × 100
3. Cost Per Acquisition (CPA)
CPA measures how much you’re spending to acquire each customer or lead through your PPC campaigns.
Example: If you spend $1000 on ads and acquire 20 new customers, your CPA is $50.
Calculation: CPA = Total Ad Spend / Number of Conversions
4. Return on Ad Spend (ROAS)
ROAS shows how much revenue you’re generating for every dollar spent on advertising.
Example: If you spend $1000 on ads and generate $5000 in revenue, your ROAS is 5:1.
Calculation: ROAS = Revenue from Ads / Cost of Ads
5. Cost Per Click (CPC)
CPC is the amount you pay each time someone clicks on your ad.
Example: If you spend $100 on ads and receive 50 clicks, your CPC is $2.
Calculation: CPC = Total Ad Spend / Number of Clicks
6. Click-Through Rate (CTR)
CTR measures the percentage of people who click on your ad after seeing it.
Example: If your ad is shown 1000 times and receives 30 clicks, your CTR is 3%.
Calculation: CTR = (Number of Clicks / Number of Impressions) × 100
7. Impression Share
This metric shows what percentage of the total available impressions your ads are receiving.
Example: If there are 10,000 potential impressions for your keywords and your ads show 6,000 times, your impression share is 60%.
Calculation: Impression Share = (Actual Impressions / Total Eligible Impressions) × 100
8. Quality Score
Quality Score is a metric used by ad platforms to rate the quality and relevance of your keywords and PPC ads. It’s typically scored on a scale from 1-10.
Example: A keyword with a Quality Score of 8/10 is considered very good and may result in lower costs and better ad positions.
9. Clicks
While simple, tracking the number of clicks your ads receive is fundamental to understanding engagement.
Example: If your campaign received 500 clicks last month and 750 this month, you’re seeing a 50% increase in engagement.
10. Source of Conversions
Understanding which channels are driving conversions helps in allocating your budget effectively.
Example: You might find that Google Search ads account for 60% of your conversions, while Facebook ads account for 40%.
Ready to take your PPC campaigns to the next level? At 511 Digital Marketing, we specialize in crafting high-performing PPC strategies tailored to your unique business needs. Contact us today for a free consultation and discover how we can help you achieve your digital marketing goals.