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Which PPC Metrics Should You Focus On?

Which PPC Metrics Should You Focus On?

If you aren’t already familiar with the term, PPC refers to “pay-per-click” advertising. With PPC advertising, marketers pay a small fee each time a viewer clicks on an ad. Ultimately, in utilizing PPC metrics advertisers purchase clicks to bring users to a website. From there, the goal is to keep viewers invested and continue engaging with the site. While it may seem strange to pay for clicks, it’s no different from posting a newspaper ad to drive customers to a business. The reward is ultimately worth the price. PPC campaigns are available across a wide range of platforms such as Google, Twitter, Bing and Facebook.

Now that you know what PPC is, there are some key metrics you should be focusing your attention on. Otherwise, you may not be getting the most out of this brilliant digital marketing tool. Here, we’ve provided a list of essential metrics to help you get started. With SEO strategies and PPC tools, you’ll be on the fast track to winning over more customers.

  • Clicks

This is an absolute must; all PPC metrics begin with clicks. The number of clicks tells you just how many people have selected your ads. If you have a low number of clicks, this could mean you need to take a closer look at the keywords in your ad content. Can you make it more succinct and precise? Clicks will let you know what ads work and which don’t, so use that information to your advantage.

  • Conversion Rate

Conversion rate is the next thing you’ll want to check on after clicks. While clicks tell you how many people access your site, a conversion rate lets you know how many people visit your site and complete a goal. For instance, any individual who visits your site and then makes a purchase is “converted” from a visitor to a customer. If your conversion rate is declining, it might indicate you should re-envision your landing page. What will keep visitors interested?

  • Cost Per Conversion

This tool is key for discovering whether or not you’re achieving a fruitful ROI (return on investment). Essentially, cost per conversion tells you how much one conversion is on average. If, for example, you spent $500 on your ads and received a total of 5 conversions, the cost per conversion would equal $100. Put even more simply, this means you spent $100 for someone to visit your site and follow through on an intended goal (such as making a purchase).

  • Click-Through Rate

Click-through rate is especially useful in determining how successful your ads are. This key metric reports how many times someone comes across your ad and chooses to click versus not click. If users are scanning past your website, that probably means they don’t believe the information will be of use to them. Again, if this is declining you should revisit your ad copy.

  • Cost Per Click

CPC or “Cost Per Click” tells you how much you’re paying for each individual click. You can compute this number by dividing the total amount you are spending on ads versus the precise number of clicks. You’ll want to ensure this stays as low as possible. Paying too much for ads detracts from other important business expenses.

  • Cost Per Acquisition

Cost per acquisition reports the total cost of obtaining a customer. It combines the cost of ads and various campaign expenses to provide a fuller picture of how much a marketer is spending. Like with CPC, the main goal is to keep costs low so you can maximize on your investment.

  • Impression Share

Impression share juxtaposes potential impressions against the actual amount of impressions your ad received. If something about an ad makes an impact, users will want to visit it repeatedly. Ideally, this ratio should be high as you want to achieve as many impressions as possible. It doesn’t take click-through rate into account, but this tool is a great way to tell how much reach your brand has.

  • Bounce Rate

Bounce rate refers to how many people came to your landing page and left without viewing another page. The whole idea is to keep viewers engaged, so this number should be as low as possible. If you look at your bounce rate across several campaigns, you’ll get a good sense of which ads are prospering.

  • Overall Return on Ad Spend

To calculate how much ROI you’ve gained versus how much you’ve spent on a specific campaign, you would divide the total profit garnered from an ad campaign by the overall cost of the campaign itself. When it comes to marketing, this may be the most significant PPC metric of all. It tells you the #1 thing you need to know: if the amount you’re spending on ads is actually worth the cost. In most cases, it is. However, adjustments may need to be made to ensure the campaign thrives.

  • Quality Score

While this PPC tool only applies to Google ad campaigns, it’s a highly important metric. Google’s quality score details the efficiency of your landing page and how relevant your keywords are. In addition, it gives you a ranking and the exact bid amount. This is a great way to see how your ad measures up against the competition.

Are you looking to improve your pay-per-click marketing strategy? At Gauge Digital Media, our experts can direct your campaign, display ads across Google AdWords and Bing Ads, and measure it accurately. We can also assist you with your web design, SEO, graphic design, social media marketing and e-mail marketing needs. No matter your business or industry, we can help you achieve your goals.

We Are Here to Help Grow Your Business Online

Working with a professional digital marketing company is the best way to make the most of your website and all that Facebook Pixel, LinkedIn ads, Google Analytics and other digital advertising platforms have to offer. To learn more about the best digital marketing strategies for your company and reach a bigger audience than ever before, work with Gauge Digital Media. For a quote or to schedule a call, contact us at (443) 201-7709.

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