Paid marketing is a way of advertising something by paying a certain amount. It can be a TV advertisement or publicizing the brand through newspaper or radio. But at present, Pay Per Click (PPC) adverts have become a rage in the marketing industry. Paid advertisements always appear on the top results of search engine exactly above the organic results by targeting the right keywords.

Just launching a pay per click campaign is not enough, you need to track the performance of your campaign to find out whether it is working or not. Being a Digital Marketing Agency experts, we know how to use KPIs (Key Performance Indicators) to know how well something is or isn’t working. We use KPIs at multiple levels to analyze the campaign’s performance.

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A good PPC management company measures its paid campaign in two different categories, which are explained below:

  1. If Campaign is for lead generation:
  • Cost-per-click (CPC): It is the average amount that you pay for per click. You can calculate CPC by dividing the total cost from total clicks.
  • Clicks V/S Session: Clicks indicates how many times your Ad got clicked, whereas, session indicates how many unique sessions were there. If a user clicks your multiple times, it will be considered as one session. This lets you know about unique visitors.
  • Conversion Rate: This is a post-click activity. You need to measure how the user reacts to your ad after clicking. Do they sign up or register or make a purchase after the click or not.
  • CTR (Click-through Rates): The ratio that shows how many times the ad is seen and how much clicks it got. This is used to measure the performance of the ad.
  • Quality Score: Google checks the relevance of your Ad to the keyword you are targeting. Quality score is measured on various factors.
  • Cost Per Lead (CPL): This is to determine which campaign is running successfully and which is wasting your money. A good CPL is the one that is in balance with your company’s growth and profitable goals.
  • Cost Per Acquisition (CPA): CPA is necessary for every advertiser to find the relationship between the total money spend on advertising and the number of conversions gained. CPA helps you know how much money you can spend on each sale, lead or action.
  • Bounce Rate: Bounce rate enable you to understand the aspects that need your attention. It measures the number of customers who visited your site but left without responding to Call to Action (CTA).
  • Ad Relevance: High return on investment totally depends on the relevancy of an Ad. The advertiser needs to focus on relevant Ad, relevant Ad group and relevant Ad landing page for better returns.
  1. If campaigns are for branding: 
  • Reach and Frequency: This is a number of viewers who saw your Ad and frequency is tested to know how many time the customer saw your Ad in a specific time period.
  • CPM (Cost-per-impression): This is the amount you are charged for every thousand impressions.
  • Impression: It explains how often your ad is seen on the search result page, on the website, and YouTube channel.
  • Customer Engagement: The marketer uses CTR to measure how engaged customers are behaving towards the Ad. It is helpful when an ad is displayed in the search network.