Why Paid Search Metrics Matter

December 27, 2019
Versa Creative

Understanding where you rank when a current or potential customer searches for your business can seem confusing. With so much data present, how can you accurately read and analyze what’s important to you?

Pay per click (PPC) goals are critical to the success of any business that has an online presence

How do you measure PPC?

Pay per click (PPC) goals are critical to the success of any business that has an online presence. In fact, about 46% of people search for local information online, while 92% of those searchers are more likely to choose a business located on the first page of their results. This means that taking into account PPC results covering impressions, clicks, click-through rate (CTR), and so on, seriously means something for any and all types of businesses. Here’s a brief overview of some ways PPC measurements are determined.

Average Cost per Click (CPC): Total cost / total number of clicks

Clicks: How many times someone actually clicked on your ad

Click-Through Rate (CTR): Amount of clicks on your ad (%) / impressions

Cost: Total cost for all clicks

Conversion rate: is the percentage of the time an action was completed by someone after clicking an ad and completed within a specific amount of time

Cost Per Conversion (CPC): Also known as cost per acquisition or cost per action, CPA is determined by how much is spent to gain a conversion

Impressions: Number of impressions is the total number of times your ad showed up within the results of a search query

Impression Share: Percentage of the time you were eligible to appear on Google search results

Negative keywords: Keywords that help prevent your ads from appearing for irrelevant search results. An example of this would be if you sell glasses for vision and want to bid on “glasses” as a keyword, one negative keyword would be “wine” since people searching for “wine glasses” would not be likely to click on your ad about glasses for vision.

Search Engine Quality Score: Combined keyword and ad relevancy and landing page experience, which has an effect on CPC

 

What is KPI in Google Ads?

Key performance indicators (KPIs) can be analyzed through cost per click, conversions, click-through rate, cost per action (CPA), and evaluating the scores given through your Google Ads account. Your quality score will play into how you are viewed through Google Ads and is based on a scale rating from 1 to 10, with 10 being the highest score, determined by ad relevance, expected clickthrough rate, and landing page experience.

 

You should also measure the success of your Google ads is by taking a look at the keywords.

How is Google Ad success measured?

You will want to pay attention to some key performance indicators (KPIs) when reviewing the results of your Google Ads campaigns. You should also measure the success of your Google ads is by taking a look at the keywords. Since Google Ads runs similar to an auction, the amount you choose to spend combined with the keywords you decide to focus on will be competing against other companies to capture your audience’s attention. There are a few search metrics you should keep in mind when evaluating your keywords including:

  • Length of time run – Keywords should be running at about the same length of time to get a more accurate read
  • Budget – Manage your budget and avoid wasted spend on low-performing ads

After your results have been measured and investigated, you can decide with the rest of your team on whether you need to update the keywords you are currently bidding on or place them on hold. For the keywords that you would like to keep, now could be the right time to begin experimenting with a variety of call to action (CTA) buttons to see what your audience responds to more. Keep in mind that two of the overall goals of utilizing keywords is to get the most conversions and have the lowest cost per click.

 

What is PPC performance?

PPC performance is the overarching success of your established paid search marketing campaign, which may or may not include SEO. PPC includes a variety of marketing tools and platforms, including:

  • Display advertising – Display ads show up as banner ads and can be any form of graphic that may show up on a desktop, mobile phone, or tablet
  • Social media advertising – Social media advertising is done through several types of ads displayed across a number of social media platforms (Facebook, YouTube, Instagram, Twitter, Snapchat, etc.)
  • Retargeting ads – Also known as remarketing ads, retargeting ads focus on the people who have previously visited a webpage or landing page before but did not convert
  • Mobile ads – These ads show up and are formatted specifically for mobile devices

As you can see, paid search metrics for a business have a lot to do with how your business is seen online, what people are engaging with, and how often they convert. At Versa Creative, we know the importance of PPC campaigns and we successfully run a number of campaigns for clients of all kinds. If you are looking to improve the performance of your digital marketing and see real results from your PPC campaigns, contact us today.

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