Paid search is a digital marketing strategy where Google and other major search engines allow advertisements to appear on SERPS or search engine results pages. The process involves paying for any ad clicked on by users. The advantage of this marketing method is that it can be measured and controlled by the advertiser. The edge of paid advertising is that tracking is easy. When a user sees the paid search ad, they then visit the website. The advertiser would immediately know how they got there, the ad they saw, and whatever they responded to.
There are millions of people who go online each second of the day, conducting their searches on Google and other search engines for information, products, or services. For an online business, it is the best opportunity to promote the business targeting various audiences who are researching and interested in purchasing specific products or services that a company is offering.
To manage paid search marketing campaigns efficiently, advertisers can make use of several Pay-Per-Click (PPC) metrics. The difference between PPC marketing and other advertising channels is the opportunity for advertisers and Minneapolis PPCto track each part of their marketing campaigns. However, some PPC metrics may be a bit more necessary to monitor. And while the essential metrics differ in every marketing campaign, some are vital for their efforts to succeed.
For paid search marketing campaigns to succeed, and to get a higher ROI, here are seven of the most important paid search metrics to track.
In simple terms, each time someone clicks on an ad and leads to a company’s landing page, there is a cost involved. This is what CPC or cost-per-click is all about. If a company develops a digital ad campaign, it can lay out the maximum amount that it is ready to spend for every click. The ad owner can also make adjustments, either to raise or lower the bid according to different factors. These would include a physical location, the device used, and others referred to as the maximum bid. Several factors come into play for what Google ads charge for every click against what the company is ready to spend. Nevertheless, this cost will either be the same as the maximum bid or less, which helps an advertiser create the budget for a specific ad. The maximum bid, the relevance of the ad, landing page quality, and click-through rate are computed for Google and other search engines to determine the ad rank and the frequency of its visibility on result pages according to a specific set of keywords. CPC is an essential metric because it is useful for the ad owner to decide how much they should spend for each click while still looking at a profit.
2. Number of conversions
The conversion rate alone is not necessarily essential until it is used together with metrics like the number of clicks executed. The conversion rate or the number of conversions is a metric that provides insight into how a campaign is faring. It is the click ratio from a company’s PPC ads that result in conversions for leads or potential clients. Ad owners would indeed be aiming for higher conversion rates that translate to revenue. Still, more factors are involved apart from a paid search campaign to determine a specific figure. Low conversion rates result from various issues such as loading speed, content, cost of products or services, etc. Improvements can be made by the advertiser and Minneapolis PPC to increase conversion rates.
3. ROAS (Return on Ad Spend)
The reason behind any paid search campaign is for a business to profit. When a PPC campaign does not bring in any revenue, it is a waste of investment that is better spent on other efforts. Thus, ROAS or Return on Ad Spend is considered one of the most essential and often used PPC metrics. It provides ad owners with a full recap of their paid search campaigns and offers stakeholders and insight into figures. When an ad generates revenue from its paid search campaign, more businesses are interested to invest in it. On the other hand, an ad campaign that consistently loses money should no longer be invested in by the advertiser.
Conversions occur because of clicks, which is why they are the initial gauge of the success of any PPC campaign. This indicator measures the number of users that click on an ad. Most business owners that run PPC campaigns monitor their accounts consistently to determine which are giving their best performance or not. Successful ads may encourage them to increase their bids.
5. Impression share
Whether an ad is clicked on or not, an impression happens as soon as it is seen by a user. The number of impressions generated by a campaign is not a measure of success since an advertiser does not know the number of users that were compelled by the ad. Just the same, impression share still provides a report on the total number of impressions generated by an ad campaign. It offers ad owners an incidental insight into the competition. For example, a keyword that gets a specific percentage lets the ad owner know that the remaining percentage is owned by its competitors.
6. CLV (Customer Lifetime Value)
One of the more important metrics for a successful PPC campaign is the CLV or customer lifetime value. Like the AOV (average order value), CLV helps ad owners determine the amount to be together with the cost per acquisition. CLV refers to the entire amount spent by a customer during the duration of their relationship with the company. Without this knowledge, the bidding may either be too high or too low, both of which can end up in poor results.
7. Click-through rate
For a website to have increased traffic and profit, users should click on their ad. While measuring how many clicks an ad earns is useful, it does not offer enough information. The better metric is comparing the amount of clicks to the number of users who have seen the company’s ad. When it comes to PPC advertising, the click-through rate plays an important part because it determines the amount spent for every click. It also affects the quality score of an advertiser on their ad rank on the Google Ads system.
By tracking these essential paid search metrics with Minneapolis PPC, ad owners can determine whether their PPC campaigns are effective, need improvements, or re-evaluation.