Marketers sometimes struggle with deciding which metrics are the most impactful to measure and track. Monitoring and understanding your paid media performance metrics are an absolute must in the game of attribution and ROI. It is essential for every digital marketer to understand what you would like to achieve and how you will measure and track these goals. Monitoring your performance metrics also allows you to determine the performance of every single dollar spent. Did I mention it can also help you achieve your ROI goal? Below we have listed 4 important metrics you MUST monitor!
1. Paid Media Clicks
It all starts with traffic and engagement. Clicks are a way to measure the number of people who clicked on your ad. However, the success of one’s campaign should never rely solely on clicks. Clicks can help you identify how many search users are showing interest and attention to your ad.
2. CTR (Click-Through-Rate)
Click-through-rate measures your PPC performance by diving the number of clicks by the number of impressions. For example, if you generate 85 clicks and 700 impressions, your CTR would be 12%. A good CTR indicates that your ad is highly relevant to your target audience and helps search users find the right service. It’s about relevance and impact.
3. Quality Score
Your numerical quality score measures the relevancy of your ad content is on Google Ads, using metrics like:
- Landing Page Experience
- Ad Relevance to Your Targeted Keyword
- A good quality score determines a higher rank at a lower cost.
- CPC (Cost-Per-Click)
This metric can be determined by your competitors. CPC is the amount you pay for each click on your ad. You can determine your CPC by dividing the total cost of your campaign with the number of clicks it received. Essentially, we want a lower CPC. However, we are competing with the ad rank of other advertisers bidding for the same keyword, which is a factor that may affect your CPC.
4. Conversion Rate
Conversion rate is extremely important and indicates success within your campaigns. Conversion rate is essentially the average number of search users converting into leads. It’s measured by dividing the number of total of conversions your campaign has received by the total number of clicks. For example, if you generated 200 clicks and received 20 conversions, your conversion rate would be 10%. A high conversion rate indicates people want what you are offering and find it extremely valuable to their search.
It is extremely important to monitor and track your paid media performance metrics. These top 4 performance metrics are valuable and help you eliminate waste. Always remember to track what is most important to your goals. As PPC specialists, we are investing money to see success and good results, correct? If results are down, we may need to dig deep and find what the issue is. By tracking and understanding your performance metrics you will be able to determine whether your campaigns are successful or not. This will save you time from having to dig deep and figure out the issue with your campaigns.