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The Most Important Metrics in Adwords Pay Per Click Campaigns
July 2, 2013, 12:55 pm
Filed under: Uncategorized

Pay Per Click advertising in Google is one of the most successful platforms available for marketing to your customers online. With that being said, many of business owners and marketing executives don’t understand the important metrics of a PPC campaign. If you are utilizing Adwords in house then you may already be familiar with some of these metrics. However if you are being handed reports with key statistics on them from your search marketing provider it is important to know which metrics are important to look at. In this post we will talk about the three biggest metrics a business owner or marketing executive can look at in PPC to determine if they are having success in the campaign.

1)     CPA- This is the cost per action. This metric helps tell you the profitability of your campaigns. Actions can be defined in analytics and can range from something as simple as signing up for a newsletter or actually making a purchase on your website. Generally, the lower CPA your campaigns have the more ROI your campaigns will see.

2)      CTR- This is the click through rate. While CPA can tell you how profitable a campaign can be this metric actually helps you identify the quality of traffic, and quality of advertisements you are delivering to prospective clients. If you are seeing low CTR’s consider creating a more interesting or relevant ad. If you are seeing high click through rate, identify why you are having success and emulate that strategy to create high CTR’s in your other PPC ads.

3)      Conversion Rate- This is the rate in which your PPC clicks are actually turning into customers. By utilizing the call extensions and action reports in Google analytics you can better identify which ads are actually converting clicks into real customers. This metric helps answer the question how many of my clicks are turning into real customers for my company?

By better understanding these 3 metrics in Adwords you will be able to better understand the level of success you may or may not be seeing from your PPC strategy. These metrics will help you isolate the reasons for your PPC success or failures and make it easier for you to correct them. Do you find that a specific PPC metric helps you make campaign decisions other than the three mentioned above? Let us know about those metrics in the comments section!

Caleb Tennenbaum
Marketing For The Future, LLC



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