Whenever you search on Google, you might come across the first few searches captioned in bold letters, i.e., “Ad.” Remember now? That’s how advertisers leverage the search engine to target their ad for service offering or product offers.

The whole concept is to direct users to your site rather than depending on organic user visits. In other words, PPC or pay per click advertising is a means to increase conversions, generating leads, and promoting brand awareness.

Let’s face it. Creating a successful PPC campaign is not everyone’s cup of tea. A lot happens while creating a PPC campaign. It usually starts with keyword selection, researching competitors, keyword organization into different ad groups to creating user-friendly PPC landing pages. If this sounds overwhelming, or you simply feel like you don’t have the time or personnel within the office to carry out an effective PPC campaign, you may wish to get in touch with someone like iTonic, a full service team who can help you get the exposure you need!

Only those Ad campaigns work that create relevant, targeted PPC campaigns. If you can achieve that, Google will reward you by charging you less per click. But you will never achieve that if you are not keeping an eye on the key performance indicators.

Thoroughly understanding KPIs is essential to rate a PPC campaign’s performance. After all, if you are clueless about the Ad results, you can’t demonstrate the results to your clients or your employer.

So, here are the five most common PPC KPIs that you must track to see whether or not your campaign was successful.

Impression Share (CPM)

This is one of the easiest PPC metrics that provide you data of the number of users that saw your ad. It does not include any other activity such as clicks. Although it does not directly indicate any performance analysis, measuring impressions helps you to add relevant context to your PPC campaign.

Related to keyword organization: Small Business Website Tips for a Local Store

It’s basically a means to see how you stand against your competitors in providing value. You can use this data to boost your impressions and lower the visibility of your competitor ads.

Click-Through Rate/CTR

It’s no rocket science that every conversion starts with a click. So, ad clicks are an indicator of your PPC campaign’s relevance and success. In other words, if a user clicks on your ad, it means they are finding it relevant according to their search queries.

But one can never depend on clicks alone to determine the strength of any PPC campaign. That’s why PPC marketers usually measure CTR or click-through rate.

You can also calculate CTR by dividing the number of clicks in a set period by the total number of impressions. But how to find if the campaign received high CTR? According to WordStream research, the highest CTR belongs to dating or personal services websites. And technology, B2B, and other consumer services usually fit into the range of lowest CTR.

Cost Per Click (CPC)

PPC marketers typically have a predefined budget when creating a campaign. Hence, it’s no use if you are paying more for a single click. That’s where CPC comes into limelight.

As per the statistics available, the average CPC in AdWords is $2.69 for search ads and $0.63 for display ads no matter the type of industry.

Many factors are responsible for determining your cost per click, including keyword competition and quality score. In fact, if you are consulting Falcon Digital Marketing ppc company, they will help you identify the budget you can allocate to different search ads depending on the ad performance.

Quality Score

Compared to other KPIs, the quality score was a metric created by Google to understand the relevance and quality of your ad content. Google scoresGoogle scores the Ad on a scale of 0-10.

A good quality score is usually between 7 to 10. But as per the PPC marketing trends, getting a score of 5 means that you have hit the jackpot. If your score is less than that, it means you need to work more on making your ad relevant and engaging.

Google calculates the final score by analyzing different factors such as average CTR, ad relevance, and PPC landing page quality. Remember, the quality score affects your cost per click (CPC). The more is the quality score, the less amount you will have to pay for your AdWords campaign.

As they say, every penny saved is a penny earned. So, make sure to track this PPC KPI to rate your campaign performance.

Conversion Rate

This is precisely one of the vital metrics that you must track. Remember, there is no point of engaging visitors to your landing page if they are not buying your services or products.

Many factors are responsible for creating a high performing or converting PPC ad.

Whether or not your ad copy is grabbing your target audience’s attention?

Whether your ad copy is informative enough to switch users into paying customers?

Whether your ad optimized landing page is providing seamless user experiences?

If you are doing right at all fronts, your Ads conversion rate will be on the higher side. However, one must know that every industry has different notions when it comes to conversion rates, for some its sales and for others its number of booked appointments.

PPC experts help create custom-tailored PPC strategies as per your industry requirements. For instance, the average conversion rate is usually 3.75%.

Conclusion: Keyword Organization

Keeping a watch on all the essential KPIs is the only way to rate your PPC campaign performance. Remember, PPC marketing is a valuable tool to drive the target audience to your site.

But if you are not focusing on keyword relevance and landing page aesthetics and context, your CPC will increase, leaving you with fewer conversions, thereby minimum ROI.