PPC campaigns are one of the most important parts of any digital marketing strategy. They allow you to reach more people, at a much lower cost than other forms of advertising. Since their success relies on various KPIs, here are the key stats that we, as a PPC agency, include in our reports and yours should, too, to measure the performance of your campaigns.
Most PPC reports are based on the number of clicks or impressions. However, this is not enough to determine the effectiveness of your campaign. The goal of a PPC campaign is to drive traffic, bring in leads, and generate revenue for your business.
For that, you need to measure how many leads you get from each campaign, how much time it takes to convert them into customers, how much it costs you to get a click, and myriad other KPIs to know whether or not a campaign is successful. This will help you determine the right keywords for your campaign.
If you want to boost conversions and increase sales as a result of your PPC campaign, then you need to make sure that every single keyword has an actionable goal attached to it, which will help you accomplish the overall campaign goal.
Impressions are the total number of times your ad is seen. This includes both click-throughs and non-click-throughs. That’s why your number of impressions will always be higher than the number of clicks because your ads will reach many people but not everyone who was shown the ad will click on it to go through to your landing page.
In Google Ads, you can see this metric in either “Impressions” or “Views”. The difference between the two metrics is that “Impressions” represents one instance of displaying an ad to a user. In contrast, “Views” represents how many instances of displaying an ad to a specific user. Again, your number of impressions will be higher than the number of views. But they both need to be included in your PPC report.
Source of traffic
This is an important stat for PPC reports because it shows what percent of traffic came from each source. And you can make advertising decisions based on these stats. So, for instance, if most of your traffic is coming from Facebook, you can double down on your ad spend on Facebook and get more out of your ad budget.
If you want to know where your clicks are coming from, you can look at the source of each individual lead in Google Analytics. You can find this data by clicking on “All traffic” under the “Acquisition” section in the left-hand menu, and then selecting “Source.”
Click-through rate (CTR)
This is another metric you need to look for in your PPC report. The CTR is the percentage (or number) of times people click on a particular ad or ad group, divided by the number of times it was shown (impressions) during the last reporting period.
It is an important metric because it shows how well your ads are working for you and whether or not your content is good enough to produce any leads. So, they must be tracked and included in the report.
This metric shows how many people who saw your ad clicked on it and eventually converted into a customer. For example, if someone sees your ad, clicks on it, lands on your page, and then goes through checkout to buy your offering, this would be considered a conversion.
Conversions are usually the final goal to measure for any PPC campaign because they are the real yardstick of your campaign’s monetary success. Needless to say, they are a must-have in any PPC report.
Cost per click (CPC)
As the name suggests, this is the cost of a click on your ad. It is a great way to measure not only how much each ad is costing you but also how much each click is costing you so that you can see where you are getting the most bang for your buck.
You can calculate your CPC by dividing your total cost by the total number of clicks from all sources. Understandably, the higher the CPC, the more capital you will end up spending on your ads. Higher CPCs also typically means that your ads aren’t working, so you need to switch things a little.
On the other hand, if your CPC is lower, you know that your ad is performing well and giving you the most out of your ad budget.
Return on ad spend (ROAS)
The return on ad spend metric is another important when it comes to assessing the performance of your PPC campaigns. ROAS is a metric that shows how well your campaign performs relative to its budget. It measures how well your ads were able to convert clicks into sales and how much money you were able to make from them.
ROAS takes into account both the cost per click and the revenue generated from a particular campaign. The higher the ROAS, the better!
But ensuring high ROAS is easier said than done. That’s why you need expert support to help you get the most out of your ad budget. Get in touch with our team to get started.