The Most Important AdWords KPIs Businesses Need to Track

The Most Important AdWords KPIs Businesses Need to Track

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The pay-per-click ads, more popularly known as PPC campaigns, help web developers measure the performance of their content over a specified time frame. Google Analytics tools and AdWords further display the entire range of metrics including the key performance indicators or KPIs, a rating that reveals the ranking and popularity of your ad campaign. Read on to know more about the various AdWords those KPIs businesses need to track:

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Impressions

The impression is the number of times your ad campaign is displayed. It determines the success rate and visibility of your ad in the vast web of content floating online. The first step to achieving this is to set a target audience group and prepare strategies to promote your campaign on the chosen platform. However, the impression metrics has nothing to do with measuring the progress of your ad it just shows the number of hits your campaign is getting. Marketers keep an eye on the changes in impression rates over the span of a day, week or month.

Click Through Rate

Users have the option of clicking on the ads to view the details of the campaign. The percentage of people clicking on your ad is called the click-through rate. CTRs or click through rate is calculated by dividing the number of clicks your ad campaign is getting by the impressions it collects. The CTR metrics represents the success rate and effectiveness of your ad. A traditional ad has a higher CTR rate when compared to a newbie. Creating different versions of the same ad or incorporating the many extensions and plug-ins are the smartest ways to boost the ad’s CTR performance.

Conversion Rate

The conversion rate tells you how many customers made a purchase upon viewing your ad. The entire purpose of the ad campaigns is to encourage users to visit your content that would trigger them to make a buying decision. This KPI metrics gives you a good idea of how your ROI (return on investment) is. The AdWords aim at catching the attention of the user with as few words as possible. You have a maximum of 10-20 seconds to present your ad in an appealing way. Entrepreneurs struggle with optimizing the AdWords that enhance your chances of higher conversions. Building dedicated landing pages help you achieve this goal. When starting a new business, a good conversion rate really works a fuel and helps entrepreneur to work even harder.

Quality Score or QS

Quality score or QS is a criterion developed by Google to measure the authenticity and credibility of your ad campaign. An AdWords QS is a grade given to it by Google checking whether the content is eligible to receive an impression on a search query. A high QS score also enhances your sales, as the ad is more capable of collecting potential leads. Moreover, a high QS ranking also earns you some lucrative discounts as you are a legitimate source for Google users. The landing page quality and relevance along with usage of keywords are some of the tools you can use to boost your QS score.

Cost Per Conversion

PPC advertising techniques are a path-breaking SEM solution that gives you absolute control over the expense of the ad campaign. Marketers can always change their bids on particular keywords depending on how they think it will fare on the virtual platform. The cost per conversion rate gives you a comprehensive idea about the average cost of the PPC plan along with your daily earnings on the conversions. However, as all leads do not result in efficient conversion, the cost of building a PPC ad might go high.

Search Term Report

The search term report as the name suggests is the report card displaying the overall performance of your ad campaign. When you click on the report, it shows a detailed list of all the relevant keywords and AdWords that triggered the ad impression. This way you can tweak the keywords in your ad accordingly to ensure more clicks and conversions. You need to continuously update the negative keyword list as well to increase the CTR score.

Average Position

Average position determines your position in the industry. It is a smart KPI metrics that indicates the ranking of your ad when triggered. A high average position such as seven lands you in the bottom of the ad listings page. Usually, an ad needs to get a minimum ranking of eight or higher to earn a place on the first results page. The ads listed first are instantly visible to the user and hence at a higher chance to make more profit.

The Bottom Line

KPIs metrics offer consistent support to your ad campaign. If you have access to the right KPIs in the AdWords and use them in relevant PPC ads, the chances are that your ad campaign will be a success among customers.

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