When Placing PPC Ads, Sellers Should Pay Attention To Measuring These 8 KPIs!

Key performance indicators (KPI) can be used to measure whether a certain function is normal or not, which is also a required course for PPC marketers. Understanding the key metrics of campaign performance is the only way to properly measure campaign effectiveness and calculate return on investment.

Among them, the following 8 KPIs are what sellers should focus on:

1. Number of clicks

Clicks measure how many people clicked on your ad, which is an important metric for checking the effectiveness of your ad.

By checking the number of clicks, sellers can pause ads that are performing poorly or increase bids on ads that are performing well.

2. Click-through rate (CTR)

Clickthrough rate is calculated by dividing the total number of clicks a campaign receives over a period of time by its total number of impressions.

3. Quality Score

Quality Score is a metric created by Google that determines a campaign's Quality Score based on expected click-through rate, landing page experience, ad relevance, and ad format.

A higher quality score means sellers spend less to advertise with Google Ads, while a poor quality score means paying more.

4. Cost per click (CPC)

Just because you set the budget and bid you set for your PPC campaign doesn’t mean that’s what you’ll ultimately pay.

Cost-per-click is an accurate measure of how much you'll pay for your campaign. You can measure CPC by dividing the total cost of your campaign by the number of clicks on the ads in your campaign.

5. Cost per conversion (CPA)

Google defines CPA as the price an advertiser pays to acquire each new customer, which is calculated by dividing the total cost of a conversion by the number of conversions.

6. Conversion rate (CVR)

Sellers can measure conversion rate in Google Ads by dividing the number of conversions a campaign received by the total number of clicks.

7. Impression share (CPM)

Impression share is determined by dividing the total number of impressions your campaign received by the total number of impressions your campaign could receive, and can be used to understand how your competitors are performing.

8. Average ranking

Through the average ranking, sellers can know where their ads are displayed most of the time, and Google will determine the average ranking based on the ad ranking. Ad position is calculated by multiplying Quality Score by the advertiser's maximum cost-per-click bid.

PPC campaigns come in all shapes and sizes, which is why it’s important to look at meaningful performance metrics that sellers can’t ignore.