A Quick Guide to PPC Metrics

PPC metrics

Looking to get the most out of your paid ad campaigns? Look no further. We've created this quick guide to PPC metrics on search engines and social media sites so that you can up your PPC game - and your return on investment.

 

What is PPC?


PPC stands for 'pay-per-click'. These are the ads you'll see on a Google search query or Facebook feed. Advertisers pay a small amount each time someone clicks on one of their ads. Essentially, you're buying clicks to drive traffic (and ultimately conversions) to your website.

 

You can run PPC campaigns on a number of platforms, including Google, Bing, Facebook and Twitter. They're a good digital marketing strategy and a good complement to SEO.

 

Why should I track my PPC metrics?


Tracking your PPC advertising campaigns is essential - without proper analytics you won't be able to monitor your PPC campaign performance and see where things are going well and where things might need to be tweaked a bit. You'll never know if you're capturing your target audience or getting a good return on investment if you ignore important metrics.

 

What metrics should I track in my PPC report?


It can seem like there are a million and one different PPC metrics you could follow. In reality, there's a handful that you should always stay on top of, whether you're running PPC campaigns on Google Adwords, Bing, Facebook or another social media site:

 

Clicks


Clicks measure the total number of times people have clicked on one of your ads. Clicks can tell you a few things about your ads: lower clicks might indicate an issue with your ad copy's keywords, for example. Also, every conversion starts with a click so you'll want to keep an eye out for any downward trends and address them.

 

Cost-per-click (CPC)


Cost-per-click shows you the amount you pay each time someone clicks on one of your PPC ads. It's calculated by dividing the total ad spend by the number of clicks. Ideally, you want to work to as low a CPC as you can.

 

Note that in some platforms like Google you can also select to be charged per thousand impressions - the CPM (cost per mille) is the amount you'll be charged per thousand impressions.

 

Click-through-rate (CTR)


Click-through-rate tells you how often someone who sees your ad then clicks on the ad - it's essentially impressions divided by clicks. CTR can give you some idea of how relevant people are finding your ads.

 

Impression share


Impression share is the ratio of potential impressions to actual impressions of your ad. Say there were 100 searches for a keyword and your ad showed up 70 times then your impression share would be 70%. Ideally, you want the highest impression share percentage possible.

 

Conversion rate


Conversion tracking is critical. It tells you how many people clicked on one of your ads and then went on to take a desired action, such as making a purchase on your website. Ultimately, conversions are what you're after; a declining conversion rate could mean you need to rethink your landing page or ad text.

 

Cost per acquisition (CPA) is a specific type of conversion measure and usually refers to the cost of getting a customer. Conversion rate is broader and can include other things.

 

Cost per conversion


Cost-per-conversion is the average cost of a conversion. Say you spent $100 on ads and got 4 conversions: the cost per conversion would be $25. This metric allows you to track whether you're getting a good ROI out of your online advertising.

 

Return on ad spend (ROAS)


Return on ad spend tells you the return you've received on your PPC spend - you calculate it by dividing the profit derived from an ad campaign by the cost of running the campaign. ROAS is another of those critical KPIs: it tells you whether you've made money from your ad expenditure.

 

Quality score


This one is Google specific - it's a number Google gives you based on your past CTR, how good your landing page is and the relevancy of your keywords to your ad text. Your quality score determines your ad rank (formerly ad position) and the bid amount so it's worthwhile paying attention to it since it will ultimately affect your bottom line.

 

How to create your PPC report


Now that you know some of the most important PPC metrics it's time to put it all together. It's simple to create your custom PPC report:

 

1. Create a DashThis account


All you need is an email address and a password

 

2. Link your PPC platforms


Whether it's Google AdWords, Facebook Ads or anything in between, just link your account and DashThis will automatically fetch the data for you.

 

3. Choose your widgets


Or, use one of DashThis' preset templates to get you up and running in no time.

 

Best of all, once you've set up your PPC dashboard, you can clone it and reuse it as many times as you need.

PPC doesn't need to be a mystery and with DashThis it's as easy as 1-2-3

 

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