The Most Crucial PPC Metrics You Should Care About

When it comes to managing PPC adverts, you can often be bombarded by countless numbers and metrics about your campaign. With so much data and statistics to look at, which PPC metrics should you be paying attention to the most?

As most PPC managers only have a limited amount of time per day, making sure you review only the most important PPC metrics is essential. There’s no point wasting time on redundant metrics if they’re not going to help you improve your campaign’s results.

To show you which metrics are the most important to your campaign’s success, we’re taking a look the top PPC metrics you should know. From click-through rate to return on ad spend, we’ve got all the necessary metrics you should be tracking. To get thing’s started, let’s take a look at one of the simplest, but most crucial PPC metrics: the click-through rate.

Click Through Rate

clicking on a link

In order to understand if your advert is doing its job or not, you need to see how many clicks it is getting. If your advert isn’t getting any clicks at all then there could be a problem with several things. As simple as it may sound, the number of clicks your ad receives can provide you with very useful information.

However, knowing the number of clicks your adverts receive on its own is pretty pointless. Without having some kind of baseline to compare it to, how do you know if 10 or 100 clicks a day is good? Sure, a bigger number is always better, but if you’re getting 10 clicks on 10,000 impressions, then that’s not so good. To solve this problem, many marketers use the click-through rate metric.

The click-through rate is a very useful metric that combines both ad impressions and clicks to give you a very insightful metric. The click-through rate basically tells you how many of the people who saw your ad clicked it. Using this information you can conclude if your ad is working or maybe you need to design a new one.

Cost Per Click

clicking on a coin

Another important metric to pay attention to when monitoring your campaign is the cost per click. Due to the nature of PPC networks and how they work, this number will constantly be changing throughout your campaign. Depending on whether your competitors increase or decrease their cost per click will directly influence yours. Keeping an eye on this metric will give you an idea of when clicks are above average, or below.

The number on its own might not mean a lot to you, but by tracking the CPC over a certain amount of time is how it gives you value. The cost per click lets you know what your competitors are up to and what the overall competitiveness is. If the cost per click is consistently increasing and you’re having to increase it all the time, then this tells you that keyword is getting more competitive. Vice versa, if the number decreases it might mean people aren’t bidding as much for the keyword as they used to be.

By monitoring your cost per click, you can work out when a particular keyword is expensive and ultimately when it’s time to drop it from your campaign.

Quality Score

quality score clipboard

If you’ve been using Google AdWords for your pay per click campaigns, then you should know how important your quality score is. Every campaign in AdWords is given a quality score by Google and this in turn affects how much you pay. The higher your quality score, the less you pay per click for your ads. In addition to this, it can also help your ad rank higher than your competitors.

As you can probably tell, keeping track of your quality score is crucial if you want to improve your chances of success. No matter if you have an existing campaign or are thinking of starting a new one, keeping an eye on your quality score is crucial.

If you’ve just set up a new campaign then monitoring your quality score is crucial. When you first make your landing page and ads they might not be up to scratch. However, by monitoring your quality score and adjusting your campaigns accordingly, you can make sure you’re not spending unnecessary money.

Cost Per Conversion

conversion cost examples

Another one of the most important PPC metrics you should be monitoring is your cost per conversion. This metric is vital in understanding if your campaign is profitable or not. The cost per conversion metric gives you a figure in dollars (or whatever currency you are using) that tells you how much a sale cost. Obviously, you want this figure to be as low as possible, but that’s not always possible.

The metric gives you a good indication of how much it is costing you to get a conversion through paid ads. Depending on your profit margins, this number will provide you with a good indication of when a conversion costs too much. If you’re only making £10 per sale but it costs you £15 to get a conversion, then you’re losing money. You either need to reduce your costs or try a cheaper keyword.

By keeping an eye on your cost per conversion, you can work out which keywords are the most valuable for your campaign and which are underperforming. All of this is essential information to know if you want a profitable PPC campaign.

Return on Ad Spend

increasing graph

The final PPC metric in our list of important metrics has to be the return on ad spend. After all, there’s no point running in running a PPC campaign if you’re not getting a return or just breaking even.

The return on ad spend metric takes into account all the expenses related to your pay per click campaigns. This includes the cost per click but also any management fees, software or tool subscriptions. A campaign might look profitable based on its cost per click, but when you include the additional third party fees this can often eat into the profit.

This metric is also good at giving you an idea of where you should be investing money. If you’ve made a small test campaign and it seems to be making you a profit then you should look to scale it up. At the same time, if a campaign isn’t as profitable as you thought it would be then you might consider investing the money elsewhere. By making sure you understand how much campaigns are making (or losing), this will give you a good idea if you should throw in the towel.

Improve Your PPC Metrics

As you probably understand by now, running a successful pay per click campaign is all about managing the numbers. If the numbers are good then you’re on track to have a profitable campaign. If the numbers aren’t as good as they could be, then you can always try to improve them by changing your strategy. Whether that means rewriting your landing pages or changing your keywords completely, making sure your PPC metrics are as good as they can be is essential.

Unfortunately, no matter how hard you try to improve your metrics it’s not always possible. But it’s not your fault!

Over the past several years click fraud has been constantly on the rise. This type of online ad fraud affects millions of users PPC campaigns every single day. If you’re experiencing a high number of fraudulent clicks, then this will be increasing your cost per conversion and generally wasting your money. Unless you can block the fraud from your campaigns, your metrics will never improve.

Luckily, after experiencing this type of fraud first hand, we invented PPC Protect to protect client’s campaigns from fraudulent clicks. By shielding your ads from fraudulent clicks, you can significantly improve your PPC metrics overnight and stop wasting money. To see how much you can save with PPC Protect, try out free 30-day trial below.