Digital Marketing

What Are the Pay Per Click KPIs That Make Sense?

Pay per click services

Pay per click services is a contemporary internet marketing model where the advertisers pay a fee when their ads are clicked. It is commonly associated with popular search engines like Google, YouTube, Bing, Facebook, etc. The KPIs (Key Performance Indicators) of this campaign is inherently linked to your business’s goals and objectives.

PPC is one of the best advertising models to drive traffic to your website. It works when you have the right keywords mentioned in your blogs or articles. You must share informative or educational blogs on your website, and it needs to have engaging content. The more people share your blogs or links of your website, the higher you are on the SERPs (search engine result pages).

How KPIs work?

Key Performance Indicators (KPIs) allow you to measure and evaluate your business’s performance. It is an evaluating strategy that helps analyze whether the objectives of marketing campaigns are met, irrespective of the goal period.

KPIs serve as a different metric of tracking the performance of PPC that helps in understanding where the business stands in the digital market, what is the state of the business, and informs about the environment in which it is existing.

 Now, let’s learn more about Pay per click KPIs.

Clicks

Click is the best KPI to learn how many people clicked on your ad. It is an early indicator of a PPC campaign’s success, as every conversion starts with a click. The campaign manager must keep a check on which ads are performing and which ones are not.

It lets you decide which ads’ bid can be increased and which ads need to be scrapped. However, it will help if you do not solely rely on clicks to determine your marketing campaign’s success.

Click-Through Rate (CTR)

It is similar to clicks but measured by dividing the total number of clicks your campaign got by the overall impressions. For instance, if you receive 2000 impressions, and your ad was clicked 200 times, your CTR will be 10%.

It is one of the essential KPIs to evaluate performance. The more number of clicks received, the higher will be the chances of generating revenue.

Click to Open Rate (COR)

Pay per click services contribute to a good amount of success and increase the scope of sales. The COR is highly influenced when you have eye-catching content. This rate tells how many people opened the ad and clicked on images, text links, or other buttons.

It also helps determine whether the content shared on your website was engaging and helped persuade the users to take the desired action.

Cost Per Click (CPC)

This KPI model is entirely based on the clicks per ad. The advertiser pays when the users click on the ads. It does not count the impressions; if there is no click, there will be no payment.

Google AdWords is the most renowned CPC model. Here, the advertisers suggest the price they wish to pay per click and set multiple parameters for their campaign. The parameters could be anything like the maximum daily budget or criteria under which the ad should appear.

Quality Score

It is a KPI model created by Google, and many PPC advertisers find it difficult to track. With Quality Score, Google tells you how relevant your ad content is using performance metrics like CTR, landing page experience, and other variables.

A good quality score ranges from 7 to 10. The higher the quality score, the less money you pay to advertise with Google Ads. A bad quality score is six or lower, where you have to pay more money.

Cost Per Action (CPA)

CPA refers to the cost per acquisition that goes beyond clicks. Here, the agency offering pay per click services has to take action when it lands on the advertiser’s page. The actions could be anything like subscribing to your page, downloading software, or purchasing a product.

The advertiser pays when any of these actions take place. This KPI model has a higher cost than other performance metrics.

Conversion Rate

It is one of the most straightforward KPI metrics to determine the success of your advertising campaign. The conversion rate is expressed in percentage. For instance, you can measure the conversion rate in Google Ads by dividing the number of conversions received by the total clicks.

Like if there were 500 clicks, and 150 subscriptions or purchases, the conversion rate would be 30%.

Follow and track these KPIs to ensure the success of your paid search campaigns.

Author Bio: Ellen Hollington is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.

Leave a Comment