Running a PPC campaign does not comprise only running an ad and paying for it. It involves several metrics that need to be tracked for optimal performance. Otherwise, you may find that in spite of setting up an ad account and running regular campaigns, the results are unsatisfactory.
Whether you are running one targeted ad or multiple ads within each ad group, Google gives you numerous metrics to consider. Since there are so many, you may often be confused about which to focus on and which to ignore.
With tons of data involved in a pay-per-click campaign, it is essential to have a clear idea about the factors that contribute to making your ad more successful and profitable. But before we dive into which PPC metrics to track and which PPC services to opt for, let us explore the basics of Google Ads and PPC campaigns.
What is Google Ads?
Google Ads, earlier known as AdWords, is an advertising platform from Google that runs ads on a pay-per-click model. This means each time a user clicks on the ad, the advertiser has to pay a particular amount to Google.
When you make searches on Google, you often see ad listings at the top and bottom of your search results. These ads are not so randomly selected to be displayed to you. Google decides which ad to place where, based on a number of factors.
Each time you type a query in the Google search bar, the engine decides which ad to show on the SERP. Advertisers who run PPC campaigns have to pay Google to get their ads features, and this rate may be different for different companies.
There are almost two million websites in Google’s Display Network. Hence, there are a number of aspects that determine whether your PPC campaign is getting the right value and fetching good results. To track those, you must monitor and optimize Google Ads regularly.
There are a few benefits to using Google Ad metrics for your PPC campaigns.
- You can target your ads based on audience demographics, keywords, language, location, devices, and frequency.
- PPC costs can be controlled by the efficient use of Google Ads.
- You can track ad performance and measure your success.
- You can also manage your PPC campaigns through the dashboard.
Top 6 Google Ads Metrics to Measure PPC Performance
There are several metrics that can be tracked to measure the performance of your PPC campaign. However, depending upon your goals and requirements, you can choose to focus on the few most important ones.
In most cases, the following six Google Ads metrics are important to measure as they combine to create a holistic picture of how your campaign is working and what can be improved to get better results.
Cost Per Conversion
The cost per conversion (CPC) is the amount you have to pay each time a user takes any desired action. This is a very important metric for PPC as conversion can mean many things. For instance, you may consider conversion as user registration, product purchase, blog sign-ups, and so on.
For each desired action, you must pay Google a specific sum of money. Each campaign has a customized conversion plan and price range, based on industry. Compare your CPC to other marketing channels and check the competitiveness of your keywords.
If your CPC and CPA (cost per action) keep increasing, you can:
- Use long-tail keywords
- Target traffic from specific channels
- Increase maximum bids for important keywords
Clickthrough rate or CTR is a measure of how many times your ads are shown versus how often a user clicks on the ad. For instance, if your ads appear to 1,000 users, one time each, and 600 users decide to click it, your CTR would be 60%.
CTR is variable and may keep changing each day. It may also show a huge difference between weekdays and weekends. You can measure CTR for an ad or a keyword. This helps to strengthen your marketing strategy by making necessary changes based on performance.
Your aim must be to keep the CTR at an optimal level. It does not need to be too high as you must pay Google for each click and thus, you do not want unnecessary or worthless clicks. Change your ad language and targeting to get better quality clicks that can lead to conversions.
However, make sure your CTR does not fall too low, as it may affect your Google Quality Score, which is another crucial ad metric. The ideal number can be between 4% and 8%.
Quality Score is a number (between 1 and 10) assigned to the quality of your ads or keywords. It is calculated based on CTR, landing page experience, and ad relevance. This score is highly crucial for PPC performance as it affects the ad rank, position, and rate per click.
You can find quality scores on your Google Ads dashboard. Keep checking it to make improvements and identify problem areas. Ideally, your QS should be between 7 and 10. Anything lower than that can drag your PPC campaign down by not showing your ad to relevant users.
While determining ad position, Google takes the keyword bid amount and quality score into consideration. Thus, you can sometimes even top a competitor’s ad with a lower bid if your quality score is higher.
To increase quality scores, you can do the following.
- Create targeted and organized ad groups.
- Find better and more relevant keywords.
- Use CTA wisely in ads.
- Optimize landing pages for a smooth user experience.
Cost Per Click
Cost per click, as the name suggests, is how much you pay Google when a user clicks your ad. This metric, although seems fixed, can actually be optimized for lower rates over time. If you implement smart campaigns, your CPC can decline by about 10% in a year.
CPCs vary by industry, so you must keep a track on trends over time. Additionally, you can reduce rising costs by changing keywords. Use long-tail keywords for more targeted traffic and increase maximum bids for selected keywords.
Return on Ad Spend
Return on Ad Spend or ROAS is the ultimate metric that every PPC marketer should track. It is the ratio of your total expenditure on ads to the revenue you make from those ads. To get the right ROAS, you must track sales, leads, and customer behavior.
You must have a positive ROAS to consider your PPC campaign a success. Compare your returns to those from other channels. If they are lower, you need to switch things up in your ad.
While calculating return on investment (ROI) or ROAS, consider all expenditures, like:
- Cost per click
- Campaign management fees
- Display and design expenses
- Cost per conversion, and so on.
Conversion rate is the rate at which users are taking the desired action after clicking your ad. Tracking this metric helps you identify the content that works best. You also get an insight into the performance of your keywords and landing pages.
If your conversion rate is low, make sure you are targeting the right audience and using the right keywords. Eliminate negative keywords to reduce irrelevant clicks. A decent conversion rate is between 2% and 5%.
However, this number varies by industry and advertiser. If your conversion rates are decreasing, you can:
- Verify tracking codes and destination URLs
- Look at search queries for relevant keywords
- Update content and images
- Check each keyword for performance
Optimize PPC Performance
The above Google Ads metrics help you measure your PPC performance in all areas. You can then make changes to optimize the campaign and get better results over time. Another great option is to choose PPC services that can elevate your ads and increase your ROI.
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