1. Number of clicks
Tracking number of clicks can be an important metric for measuring how users interact with your content because it can tell you how often your audience clicks on your paid ads. Number of clicks can reveal important information about the effectiveness of your advertisements. For example, a low number of clicks could mean your keywords aren’t connecting with users. Changing them could improve consumer response to your content.
2. Cost per lead (CPL)
Measuring cost per lead can help you measure how successful your ads are at generating interactions from your potential customers. A lead is a sign-up function like an email address or contact information that allows you to reach out to customers who have an explicit interest in your product or service. Evaluating cost per lead allows you to measure the value of a lead against what you’re spending to get their information.
3. Profit per click
Profit per click refers to the average profit generated with each click. This can be a helpful metric to determine how much you’re making from user interactions. If they click on your content but ultimately choose not to make a purchase, this can lower your average profit per click numbers. You can use it to track more specific variables within your campaign as well, like how certain keywords, platforms, audience segments and ad variations influence your profits.
4. Click-through rate (CTR)
CTR can be a great measurement for tracking the effectiveness of your ads because it can show if your ad or keyword selection is matching with your target audience’s search queries. A high CTR can mean your content is useful and stimulating, and it shows that you’ve optimized your keywords.
However, click-through rates only tell part of the story. It’s helpful to compare them to other measurements like your conversion rates. If you have a high CTR but a low conversion rate, for example, that might mean you need to reevaluate your landing page to look for reasons your customers aren’t following through on their purchases.
5. Conversion rate
Tracking conversion rates can give you useful data on if user clicks are resulting in sales. Conversion rate refers to how successful you are at convincing customers to buy your product or service. Consider comparing the conversion rates of your PPC campaigns with your other forms of advertising. This can make sure PPC is the best marketing strategy for reaching your target audience. Lots of clicks with a low conversion rate can be a clue that customers lose interest after arriving at your landing page.
Because most businesses want high conversion rates and purchases, understanding this metric can provide excellent insight into the effectiveness of your campaigns.
6. Cost per conversion
Cost per conversion measures your conversion numbers, but it goes further to evaluate how much money you’re generating in sales from these conversions. While it’s exciting to generate high sales, if you’re ultimately earning less money from your conversions than you’re spending on your campaigns, it could be time to reevaluate your content or your marketing strategies. Similarly, if the cost to convert a new customer is lower than the cost to advertise to them, that can be a sign of an effective campaign.
7. Return on investment (ROI)
Return on investment is another way to compare your profits against your advertising spend. To find out your return on investments, users of the metric divide their revenue by the amount they spent on the PPC campaign. Multiplying this number by one hundred gives you your return on investment percentage. This can help you analyze the campaigns profitability and can reveal more than using a metric like cost per lead on its own.
Consider reviewing the value of different types of conversions to get more specific data points for your ROI measurements. For example, if certain keyword searches or audience segments are spending more money, you can fucus your marketing efforts on maximizing those sales that give you higher ROIs.
8. Cost per action (CPA)
Cost per action, or CPA, is another way to analyze how much money you made or lost on a particular advertisement. Low CPAs can show you’re using relevant and cost-effective keywords that are driving strong returns. This metric evaluates any action your customers take. These could be sign-ups, sharing, commenting or purchasing. Different actions often have different values to marketers, depending on their business and goals.
9. Quality score
Quality scores can give you important information regarding the relevance of your content, keywords and landing pages. Search engines often generate quality scores and the data can show you where you have room to improve your campaigns. Like most metrics, quality scores alone may not provide an entire view of your ads’ effectiveness rates. For example, an advertisement with a high quality score but a low conversion rate could indicate that your audience is seeing your ads, but they aren’t necessarily interacting with your content.
While quality score can be a useful metric, improving your quality score might not improve your conversion rates or your CPA numbers, which is ultimately where you want to be focusing your efforts.
10. Impression share
Impression shares can tell you how often your audience sees your content after they search for a specific keyword. Impression shares can be a useful metric for providing insight into where you can optimize your campaigns. Sometimes, paying more for your ads can help you reliably get your content in front of your target audience.
Comparing impression shares against other metrics like CPA and ROI can tell you if additional investments are worth the expense. For example, if you have high conversion rates, it could mean it’s time to expand your audience and match your content with their keywords more frequently. Learning the relevance, popularity and reach of your keyword choices can help you ensure you’re targeting the right size keyword groups.
Benefits of tracking PPC metrics
If you’re a marketer, tracking PPC metrics can be beneficial because it allows you to improve your digital marketing strategies, analyze your ads’ performance and compliment your company’s search engine optimization (SEO) efforts. This can ensure your advertisements are successfully driving sales and helping your company reach its goals. Effective analytics allows you to monitor the performance of a PPC campaign to help ensure you’re successfully engaging with your target audience. Performance analytics also help you identify areas of strength and areas that could use improvement within your campaigns so that you can optimize your approach and drive sales.