11/08/2024 | Press release | Distributed by Public on 11/08/2024 06:10
Pay-per-click (PPC) advertising is often an effective way to drive targeted traffic to your website.
But deciding which PPC campaign metrics to track can be a little confusing for beginners.
In this post, you'll learn everything you need to know about which PPC metrics to track for your Google search ads and how you can gain insights from them to achieve better campaign results.
What Are PPC Metrics?
PPC metrics are specific data points that quantify your PPC advertising campaigns' performance, which helps you identify both strengths and weaknesses.
By keeping a close eye on these metrics, you're able to gain insights that allow you to make informed changes to your PPC strategy.
Now, let's look at the most important PPC metrics to focus on.
1. Quality Score
Quality Score is a Google Ads metric that assesses the quality and relevance of your keywords, ads, and landing pages.
It's expressed on a scale from 1 to 10-with 10 indicating the highest possible quality.
Google calculates your Quality Score based on a combination of three main factors:
You can view your Quality Score for each keyword you're targeting within Google Ads.
Click the "Audiences, keywords and content" drop-down in the left-hand menu. Then, click "Search keywords."
Next, click the "Columns" icon and select "Modify columns."
In the "Modify columns for keywords" window, click the arrow to expand the "Quality Score" section.
Then select the checkboxes next to "Quality Score," "Landing page exp.," "Exp. CTR," and "Ad relevance."
And click "Apply."
These columns will then appear in your keywords dashboard.
Like this:
Why Track Quality Score?
A high Quality Score is a good indication that your ads can receive prominent placements in Google's search results and potentially cost less.
This is because a high score suggests that your ad is especially relevant. And Google's goal is to show its users the most relevant ads possible.
On the other hand, a lower Quality Score may suggest you'll face higher costs and poorer ad placements. So, tracking and improving your Quality Score could lead to improvements that boost your visibility and make your PPC campaigns more cost-effective.
How to Optimize Quality Score
Your Quality Score might not directly impact your ads' performance, but it's still a good idea to follow some tips for increasing it:
2. Ad Position
Ad position measures where your ads appear when they're shown in the search results.
Low numbers like 1 or 2 indicate top-of-page placements.
Google's ad auction determines your ad's position based on factors such as bid amount, ad quality, and the ad's relevance to user's search.
Ads with stronger overall performance in these areas tend to secure higher positions in the search results.
Google Ads provides two main metrics to help gauge how prominently your ads appear:
But with Semrush's Position Tracking tool, you can track your ads' average positions more precisely.
Just follow the prompts to set up your project (make sure to select Google as your search engine).
The "Landscape" report will show details about your domain's overall keyword performance. To only view PPC data, click the gear icon in the top-right corner.
Then select the circle next to "Google Ads."
To see your average paid search ad position, open the "Overview" tab, set your timeframe, and select "Avg. Position."
You can also scroll down to the "Rankings Overview" section to view your average position for the ads that appear for specific keywords.
Why Track Ad Positions?
Monitoring PPC ad positions is important because ads that appear in higher positions are generally more visible and likely to receive clicks.
So, if your ads aren't appearing prominently in the search results, you may need to adjust your strategy to increase visibility and drive more clicks.
How to Optimize Ad Positions
Here are some ideas for improving your ad placements:
Further reading : PPC Optimization: 5 Steps to Better Ad Performance
3. Impressions
Impressions refer to the number of times your PPC ads are shown to users-regardless of whether the ads get clicks.
Higher impressions typically correlate with higher positions in search results.
You can view your impressions in your campaign dashboard in Google Ads:
Once on that dashboard, just look for the "Impr." column.
Why Track Impressions?
Impressions provide a top-level indication of your ad visibility within search results.
A high number of impressions suggests that your ads are being displayed frequently and prominently. Which increases the potential for users to take action.
How to Optimize Impressions
Here are some ways to boost your impression count:
4. Click-Through Rate
Click-through rate (CTR) is the ratio of clicks to impressions for your ads, which tells you what percentage of people who see your ads and end up clicking them.
Here's the formula:
CTR = (total number of clicks / total number of impressions) x 100
To view your CTR in Google Ads, go to your "Campaigns" report and look for the CTR column.
Like this:
Why Track CTR?
CTR indicates how relevant your ads are to your target audience.
A high CTR means that a significant number of people who see your ad are interested enough to click it. This suggests that your ad copy and keyword selection are effectively aligned with user intent.
How to Optimize CTR
Here are some ideas for boosting your campaigns' CTRs:
5. Cost Per Click
Cost per click (CPC) is the average amount you pay for each click on your ads.
It's calculated by dividing the total cost of your clicks by the number of clicks your ads receive.
Here's the formula:
CPC = total cost of clicks / total number of clicks
You can view your average CPC on the "Campaigns" dashboard within Google Ads.
You should see an "Avg. CPC" column in the table.
Like this:
Why Track CPC?
Tracking CPC is essential for managing your ad budget and assessing how cost-effective your campaigns are.
Knowing how much you're spending to attract a new visitor (on average) allows you to adjust your bidding strategy to maximize your return.
How to Optimize CPC
Here are some tips for achieving a good CPC that's as low as possible:
6. Conversion Rate
Conversion rate is the percentage of users who take a desired action (making a purchase, filling out a form, etc.) after clicking one of your ads out of all the people who clicked on your ads.
Here's the formula for calculating your conversion rate:
Conversion rate = (total number of conversions / total number of clicks) x 100
To view your conversion rates within the Google Ads "Campaigns" dashboard, start by clicking "Columns."
In the "Modify columns for campaigns" window, click the arrow to open the "Conversions" section.
Then select the box next to "Conv. rate" And click "Apply."
This will add a column for conversion rate to your dashboard.
Like this:
Why Track Conversion Rate?
Conversion rate is a direct measure of how well your campaign landing pages resonate with your audience and how effectively they turn visitors into customers or leads.
Low conversion rates suggest that your landing page or offer may not match visitors' expectations.
How to Optimize Conversion Rate
Here are some ways to maximize your PPC conversion rates:
7. Cost Per Action
Cost per action (CPA) is the average cost of generating a new conversion through your PPC campaigns.
Here's how it's calculated:
CPA = total ad spend / total number of conversions
Why Track CPA?
Tracking CPA is crucial for understanding the efficiency of your PPC campaigns in driving conversions.
A lower CPA means you're spending less for each conversion. Which improves your overall return.
Meanwhile, a high CPA could mean your campaign isn't sufficiently optimized.
How to Optimize CPA
Here are some ideas for reducing your CPA:
Further reading : How to Master CPA Marketing
8. Return on Ad Spend
Return on ad spend (ROAS) measures the revenue you generate for every dollar spent on PPC advertising to help you gauge your PPC campaigns' profitability.
Here's the formula for calculating return on ad spend as a percentage:
ROAS = (total ad revenue / total ad spend) x 100
To view your ad spend return in your Google Ads "Campaigns" dashboard, modify the columns to show the "Conv. value / cost" metric (this is the ROAS metric in Google Ads).
Why Track ROAS?
ROAS is essential for evaluating how much revenue you're generating for each dollar spent on PPC ads.
Tracking this metric helps you identify which campaigns are most profitable.
How to Optimize ROAS
Here are some tactics for increasing your ROAS:
9. Bounce Rate
Bounce rate is the percentage of unengaged sessions on your PPC landing page.
A session counts as unengaged if the user meets at least one of these criteria:
Here's the formula for calculating bounce rate:
Bounce rate = (number of unengaged sessions / total number of sessions) x 100
To view your paid search bounce rate in Google Analytics (GA4), navigate to "Reports" > "Acquisition" > "Traffic acquisition."
Then type "paid search" into the search bar above the table and tap the "Enter" or "return" key.
This will filter out all other traffic channels apart from paid search.
Next, click the "Customize report" pencil icon in the top-right corner.
Then click "Metrics" > "Add metric."
Start typing in "Bounce rate" and select it when you see it. Then, click "Apply" to save your changes.
A bounce rate column will now appear in the traffic acquisition report.
Why Track Bounce Rate?
A high bounce rate can indicate that your landing page isn't meeting user expectations, and you can use that information to look for ways to keep visitors engaged.
Maybe the page seems irrelevant to the ad they clicked. Or maybe there are other problems with the page's user experience like a CTA that isn't prominent.
How to Optimize Bounce Rate
Here are some ideas for lowering your landing page bounce rates:
Track Your PPC Campaign Performance
Monitoring PPC metrics helps you understand the strengths of your campaigns and identify opportunities for improvement.
Of course, you'll need the right tools to keep tabs on your performance metrics.
Google Ads and Google Analytics will help you analyze metrics like impressions, CTRs, and conversion rates. And Semrush's Position Tracking tool will help you track your search ads' average positions in search results.