When placing PPC ads, sellers should pay attention to measuring these 8 KPIs!

Key performance indicators (KPIs) are used to measure whether a function is working properly , and this is also a must for PPC marketers. Understanding the key indicators of campaign effectiveness can correctly measure the effectiveness of the campaign and calculate the return on investment .

Among them, the following 8 KPIs are what sellers should focus on:

1. Number of clicks

Clicks measure how many people click on your ad, which is an important indicator for checking the effectiveness of your ad .

By checking clicks, sellers can pause ads that are not performing well or increase bids on ads that are performing well .

2. Click-through rate ( CTR)

CTR is calculated by dividing the total number of clicks a campaign receives during a certain period of time by the total number of impressions it receives .

3. Quality Score

Quality Score is a metric created by Google that uses expected clickthrough rate , landing page experience , ad relevance, and ad format to determine the quality score of your campaign.

A higher quality score means you ’ll spend less money advertising with Google Ads , while a poor quality score means you’ll pay more.

4. Cost Per Click ( CPC)

Just because you set a budget and bid when you set up your PPC campaign doesn’t mean that’s what you’ll end up paying.

Cost per click is a precise measure of how much you ’ll pay for your ad campaign . You can measure CPC by dividing the total cost of your campaign by the number of clicks on the ads in your campaign .

5. Cost Per Acquisition ( CPA)

Google defines CPA as the price an advertiser pays to acquire each new customer , calculated by dividing the total cost of the conversions by the number of conversions.

6. Conversion Rate ( CVR)

You can measure conversion rate in Google Ads by dividing the number of conversions your campaign received by the total number of clicks .

7. CPM​​​

Sellers determine impression share by dividing the total impressions your campaign received by the total impressions your campaign could have received and can use this to understand how your competitors are doing.

8. Average ranking

Average position tells you where your ads appear most of the time , and Google determines the average position based on the ad rank, which is calculated by multiplying the quality score by the advertiser's maximum bid per click .

PPC campaigns come in all shapes and sizes, which is why it’s important to research meaningful performance metrics that marketers can’t ignore.

PPC Advertising

KPI

Google