PPC specialists have so much data at their fingertips that make it difficult to determine how successful or unsuccessful a PPC strategy is. This blog helps identify what KPIs to focus on to meet business goals.
Regarding PPC campaigns, this is the cost to an advertiser when they acquire a customer. This number is a result of dividing the total PPC campaign spend by the number of customers acquired. The lower the CPA is, the better. If it’s a high CPA, the PPC strategy likely needs some adjustment to be more relevant to the audience.
Usually, businesses have the goal to increase sales and they implement a PPC strategy to meet that goal. This means sales lift is one of the most important KPI metrics. Finding out whether sales are being impacted generally involves looking at these other PPC KPIs as well. But if the goal is to get more sales and that isn’t happening, see which KPI metric needs to be improved.
As with sales lift, businesses need to see a certain amount of yearly revenue to continue growing. If all sales happen online, this can be an easy metric to track. If there’s a gap between online and offline sales, there’s more difficulty in coming up with an accurate number for revenue. However, this is still a helpful PPC KPI to determine if a PPC campaign is making an impact or not.
Return on ad spend (ROAS)
ROAS is an excellent indicator of PPC performance since it focuses on ad spend only. This number is determined by dividing revenue by ad spend. The higher the ROAS number, the more money a business is making off its ad spend. This number helps businesses determine whether their PPC strategy is on track.
Return on investment (ROI)
ROI considers all investments into a project, not just ad spend. This PPC KPI compass revenue to the investment. Again, the number is better if it’s higher. If multiple PPC campaigns are running, it will be even easier to see which strategy is providing the highest ROI.
Since the premise of a PPC strategy is to get more traffic, one of the most important KPI metrics to analyze is audience engagement. This will highlight how the audience interacts with the PPC campaign. It’s important not only for sales but also for building brand awareness and engagement, especially for businesses likely to have a longer customer journey.
Click-through rate (CTR)
CTR highlights PPC performance in terms of ad relevance, i.e., does the audience care about what they’re seeing? Does it answer one of their questions? Lower CTR isn’t providing as much value to the audience. A higher CTR means the PPC strategy is significant to the viewer and provides value. It can always be improved so don’t stop there.
This metric takes into account the ad as well as the landing page. Are both pieces working in concert to convert a lead? The ad might be working well but lead to a landing page that will squander results. Or the opposite could be true. This metric will outline which piece needs to be improved and if the audience is connected with them based on the funnel stage they’re in.
Pedestal Search has the knowledge to share when it comes to PPC performance and KPI metrics. We have the tools and specialists to help businesses get the results they’re looking for. Start a conversation with us.