If you want to advertise successfully these days, you need to bring your campaigns online. Canadians spend an average of nearly 6 hours online daily.
Thus, businesses need to put their ads where people are searching for information, which is online and, mostly, on Google.
While SEO can help gain a company’s webpages traction over period of months or years, pay-per-click (PPC) marketing is what drives instant clicks and sales.
PPC allows you to get your message right at the top of the search listings on sites like Google or Facebook for your chosen keywords. A well-structured campaign can mean more business in a short amount of time.
Small businesses that advertise on Google, earn an average of $3 in revenue for each $1.60 they spend.
But gauging the success of a PPC campaign can be challenging. How can you tell what’s working and what needs to be tweaked?
For example, if you only look at clicks, you might think a certain PPC campaign is doing great. But if those clicks on your ads don’t result in leads or sales, is it really doing so well? It could just be costing you money.
It’s important with any PPC campaigns you run to gauge several key KPIs so you can properly measure the performance of your ads.
Important PPC Stats You Should Be Monitoring
Remember that just one stat won’t tell the whole story of your PPC ad success, so you should look at several and cross reference them to get the best overall picture of how your campaigns are performing.
Ad Click-Through Rate (CTR)
One of the basic stats you should be monitoring in conjunction with others is the click-through rate. This is the rate of clicks as compared to how many impressions your ad receives.
A high CTR means that people are responding to the headline and text of your ad. A low CTR can mean that your ad is not hitting its target audience and needs some tweaking to make it more relevant for the keywords being targeted.
If you don’t keep an eye on your CPC, you could end up losing money on your ads if the cost-per-click is too high.
Cost-per-click can go up for many reasons, including:
- Your quality score is low (meaning the landing page isn’t well optimized for the keyword(s) being used)
- There is high competition for that keyword
- Your campaign is bidding too high
You want to work with your PPC professional to come up with a max CPC that makes sense for the products or services you’re promoting.
Real World Sales & Leads
One of the most important statistics for advertisers is how many leads and new sales a PPC campaign brings in. This can be tricky to track if you don’t have a structure set up to do it. If you have a long sales cycle, you may be missing sales dollars that came from PPC.
For example, if you are looking strictly at sales dollars attributed to PPC, it’s important to keep track of all leads that come in through PPC and if they end up purchasing. A customer may click your ad, inquire, and then purchase three months later.
If you don’t know and aren’t tracking this, you may think your PPC campaign is not doing well, when it’s actually bringing in sales weeks after the initial click.
One way to track this is to add a Lead Source and Ad Campaign category to your customer record in a CRM program. Then if that customer ends up purchasing, you can attribute the sale properly.
Where is your ad showing up on Google? Are in you position 6 or 7? This could be the reason an otherwise great ad isn’t doing so well.
41% of all PPC clicks on Google go to the first three ad positions. Monitoring your ad position is important to see if its hurting or helping you, so you can adjust bidding accordingly.
Your conversion rate is how many of your clicks are resulting in conversions, which is one of the most important PPC factors for gauging success. People can click on your ad all day, but if no conversions happen, you’re wasting your money.
Conversion rate uses a conversion indicator that is set up in your Google Ads account. Dividing the number of conversions by the total clicks, gives you the conversion rate, or CVR.
If you’re receiving a lot of clicks, but have a low conversion rate, it could mean that your PPC ad is great, but your landing page is not doing its job to convert those visitors.
Some potential reasons for low conversion rates:
- Slow loading landing page
- No clear call-to-action on landing page
- Poorly designed or written landing page
- Information on landing page doesn’t match what the ad is promoting
- Generic landing page that’s not tailored to the ad or keyword
Get Expert Help for High-Converting PPC Campaigns
Data First Solutions offers exert WordPress website management services that can speed up landing pages and help you convert more of those PPC visitors.
Contact us today to book a free website assessment.
Call 1(855)DATA-1ST or book your assessment online.