There are numerous KPIs to consider for your paid search campaigns, and it could feel overwhelming at times to determine which KPIs are the most effective, and relevant to measure.
Here are some of our recommendations for actionable paid search KPIs that you should be tracking:
1. Return on Investment (ROI)
All the marketing costs that are being allocated to efforts that ultimately assist the overall paid search campaign, need to be taken into consideration. The ROI of your paid search will be a good indication of its benefits.
2. Return on Ad Spend (ROAS)
This ROAs is used to compare revenue to paid search ad spend, and it only takes into consideration paid search efforts and results and monitors. This metric shows whether your ad is driving enough traffic to make the ad campaign valuable.
3. Cost-Per-Click (CPC)
CPC is an important indicator to track as it shows how much of your budget is spent every time a user clicks on a paid search ad. This metric allows you to monitor and adjust your spending.
4. Average Click-Through-Rate (CTR)
CTR measures the total number of clicks against the number of people who view your ad (impressions).
5. Conversion Rate (CVR)
CVR is the most reliable metric to measure the success of a paid search campaign, as it measures the ultimate conversion (sales). CVR tracks the number of users who viewed your ad, clicks on that ad, followed through with your call-to-action (CTA), and made a purchase. Keep in mind CVR is influenced by many factors such as website copy, ad copy, landing page optimization, SEO, and more.
6. Cost-Per-Acquisition (CPA)
CPA measures the cost of a new customer and sale (generated conversions).
7. Google Quality Score
Google enables you to know how effective an ad will be before you publish it, with a quality score of 1-10. An ad can gain a Google high-quality score by being relevant with consistent CTR, which leads the viewers to a strong landing page A high-quality score will be rewarded with PPC campaign discounts.
Ready to start your PPC campaign? Contact us today to see how we can assist you with creating the ads, as well as determining and measuring the more relevant KPIs for your campaign.