Google Adwords or Pay-per-click (PPC) marketing consistently ranks as one of the most cost-effective forms of digital marketing. As many businesses new to Adwords discover; it’s easy to set up campaigns, but not so easy to know which metrics to pay attention to in order to optimize your adwords ads to maximize your CPC, Quality Score, Rank Position and ultimately generate a great return on investment. When running Google Adwords it’s important to pay close attention to the following metrics.
Adwords Metric #1 – Revenue-Per-Click
Arguably, the most important metric to monitor in a PPC campaign is revenue-per-click (RPC). This is also arguably one of the most undervalued metrics for monitoring your Adwords campaigns. As the name suggests, this reveals the average amount of money you earn for each click. If you pay $100 for 100 clicks that generate $200, your RPC also referred to as (EPC) Earning per Click for that Adwords campaign is $2.
This is a much more granular metric derived from the overall ROI and is an essential metric to determine where to trim the fat in specific Ad Groups. Business owners and digital marketers should constantly optimize their PPC campaigns to achieve the highest EPC possible, as this usually indicates greater profits.
Pay-per-click (PPC) marketing consistently ranks as one of the most cost-effective forms of digital marketing. Whether it’s Google AdWords, Bing Ads, Facebook Ads or others, though, you should pay close attention to the following metrics when utilizing PPC.
Adwords Metric #2 – Average Cost-Per-Click
We pay close attention to your average cost-per-click (CPC) when promoting your products or services on Google Adwords. With PPC marketing, it’s difficult to tell exactly how much you’ll pay for clicks – and that’s okay. We can generate fairly accurate Google Adwords proposals that layout a plan of attack and estimate your likely Ad spend as well as Return on Investment. That being said, no one but Google has all the inside information and that’s why the first 30-60 days of running an Adwords campaign are so important.
What we focus on is the average cost-per-click. Why? Because, as long as your RPC is higher than your CPC, you’ll have a profitable Adwords campaign!
Adwords Metric #3 – Click-Through Rate
Click-through rate (CTR) is defined as the percentage of users who click your ad. If 1,000 people see your ad, and 100 of whom click it, your ad has a CTR of 10%. Of course, that’s a pretty high CTR, so don’t feel distraught if you fall shy of the 10% mark. It’s common for Ads to start off in the 2-4% CTR range and this is why we set up multiple ads to rotate at all time. This allows us to optimize your PPC campaigns for a higher CTR. After allowing both ads to run, we delete the ad with the lowest CTR and replace it with a new one. We actively continue to repeat this cycle indefinitely continued optimization of your Adwords campaigns.
Adwords Metric #4 – Impression Share
In addition to CTR, Search Impression Share is an very important metric that is found by dividing the number of impressions received on the Search Network divided by the estimated number of impressions you were eligible to receive.
Impression Share is a vital metric that most businesses may not even be aware of and is most certainly overlooked and undervalued.
Impression Share helps to identify areas of missed opportunity due to budget constraints: If you have a strong performing campaign or ad group that is missing out on Impression Share due to Budget then you can simply increase budget here to gain additional conversion volume and overall campaign performance.
More importantly Impression share can tell you how much of your audience views you’re capturing and how much of your advertising dollars are being wasted.
Did you know the average AdWords account wastes 76% of its budget on search terms that never convert.
Our focus is to make sure your ads are covering between 75%-98% of their impression share, but more importantly that these ads are effective conversion drivers with a great ROI.
Adwords Metric #5 – Ad Position
Of course, you should also monitor the position of your PPC ads. Conventional wisdom should lead you to believe that #1 position ads will receive the most traffic. However, sometimes it’s best to avoid the #1 position and instead opt for a lower, more cost-effective position. First place PPC ads generally cost more than their lower ranking counterparts. Consequently dominating the top of search results with a #2 or #3 Ad position can be much more profitable that going after that #1 spot. Our goal is to help you score more clicks and conversions for less money.