If you are anything like me, you must have searched on the internet for stuff before actually going out and buying them. In my virtual tour for the quest of the product I’m seeking, I often find the products priced and displayed as “good,” “better” and “best.” While trying to be economical, I argue that “good” is good enough, but will lose onto some features if I don’t get the “best” product?
We are often faced with the same dilemma with PPC advertising. We need to decide which metrics are the best to measure our campaign’s success. There’s no dearth of the content available on as to how PPC success can be measured, but this could get a tad bit confusing. But fret not! This post will enable you to understand how different metrics can paint very different pictures of PPC campaign performance. I’ll show how traffic-focused metrics can be an excellent starting point, how conversion-focused metrics are even better and how ROI-focused metrics give the most complete picture for making meaningful changes to your campaigns. There are stats 3 PPC campaigns I ran, Let’s see which of them is good, better and best, so let’s start:
Good PPC metrics are traffic-focused
Many advertisers will default to looking at the click-through rate or cost per click while determining how successful a campaign is. Google Ads and other PPC platforms like Facebook Ads and Quora Ads provides a lot of traffic-focused metrics that are quite useful, including lesser known gems such as device segmentation and impression share. And while this is definitely a good start, it’s important not to lose sight of your basic business goals of profit generation by getting distracted. If we look from CPC perspective then Campaign 2 is a clear winner.
I have audited over 50 Ad Words accounts. Astonishingly, almost half of them had not set up conversion tracking.
Better PPC metrics are conversion-focused
Conversion tracking allows you to measure conversion actions like a purchase or a lead submission in your ad platform, usually by placing a code snippet on a thank you or order confirmation page. Without that piece of code, the only metrics you can measure are related to traffic, such as search impressions, clicks and click-through rates.
This allows us to start identifying our top-performing campaigns by using cost per lead data (cost per conversion in Google Ad Words) and as per that Campaign 1 is dominates with CPL of INR 6.
But while conversions are great; at the end of the day what really matters is whether leads became paying customers. Conversions tell us the number of leads our company got, but not how many actually signed up to refinance their homes or how much revenue they generated. Your PPC campaigns aren’t just about clicks. Don’t lose sight of what matters: generating profits.
The best PPC metrics are ROI-focused
For marketers who want to use meaningful data, let’s check out the golden metric: actual ROI!
It means tracking leads from click to close and measuring revenue on a per-lead basis. When you get to know which campaigns, ads and keywords are contributing in generating revenue, you’ll be way ahead of competitors who have no clue where they are making or losing money. And, by going by this approach it is now clear that it is the campaign 3 which is generating ROI i.e having Cost to Sale of INR 13 which is lowest among the 3 campaigns.