understanding the basics
So you’re thinking about increasing traffic to your website using PPC? We applaud you!
But first, however, it’s important for you to understand the basics of PPC. Below are the most popular key performance indicator choices that deliver the most impressive returns.
Click Through Rate (CTR)
CTR (click through rate) is one of the most crucial metrics in PPC. It’s measured as a percentage, where any figure over 2% is good, and indicates the quality of your ads. It’s measured using the sum: total clicks ÷ ad impressions.
If CTR for a particular ad is low, you know which ad content, keywords, and landing pages to investigate. By improving match relevance and the clarity of your offer, you will drive more valuable traffic and increase CTR. Your budget spend on clicks will also be much better. An effective website attracts inquiries and sales. Having tools built to engage consumers is the first step to attaining favorable results from your investment.
*Remember, PPC drives your customer directly to what they are searching for. If the product is priced correctly and inviting with nice photography, your chances of completing the sales effort rise exponentially.
Conversion Rate (CR)
This particular PPC metric is not only of conversions and sales, but of your keyword, ad, and landing page quality. A conversion can be a sent inquiry, sign up for a white paper, or a straightforward sale, but obviously these wouldn’t exist without a consistent, credible sales funnel.
While many will say that setting up conversion tracking goals in Google Analytics and merging them with Adwords, you can see the conversion rate percentage of any call to action, consumers that call to order (one of every four) will skew the numbers. It will only tell you whether your keyword choices, ad wording and page layout are working or not online only.
Cost Per Acquisition (CPA)
Cost per acquisition lets you know – with one clear price – the average overall spend to get one conversion. Don’t be alarmed if the costs seem high and you think you’re not making enough profit or wasting your PPC budget. Your best bet is to compare your sales to the same period last year. If you were not using PPC, you will most likely be very pleasantly surprised.
Cost Per Click (CPC)
The CPC (cost per click) for each keyword in your campaign is the most basic metric; it is so important if you want to make money on Google Adwords. When choosing which keywords to use you must consider how much you will pay for each, as well as how relevant and closely matched it is to your ad group. If not, you will narrow your ROI in the long run. Click cost is usually defined by the amount of bidder competition, how much the highest bidders are paying and how many clicks the keyword is expected to get. This should be measured in a strategy with a professional. It can get tricky.
When looking at the CPC, think about whether your budget will comfortably accommodate first page clicks on this keyword. Can you afford to bid competitively? Are there other ways you can improve keyword/ad/landing page quality to decrease this CPC? Weighing the pros and cons and being realistic will ensure you make money without draining your Adwords budget. This should be consulted upon to avoid the most common mistakes of thinking you may be paying too much. The question becomes, is it better to be #2 and how are conversions. After all, it’s all about sales.
Quality Score (QS)
Finally, Quality Score (QS) is another essential number to keep tabs on in your Adwords PPC account. Quality Score is the score (0 being low, 10 being high) assigned to all keywords in your campaign. It tells you, plain and simple, how good the “quality” of your keyword is in relation to its ads and landing page. This particular PPC metric may not tell you about cost implications, but it definitely indicates how much work is needed on specific areas of your campaign to increase profit.
Google Adwords will reward you kindly for optimizing Quality Scores. The higher the number, the lower you will have to pay per click for the same (or better) ad position. This means you will save money on CPC and increase profit, getting more ad exposure at the same time! Proper set up of your campaigns is paramount. Without structure, you could waste a lot of unwanted clicks.
Common question: What if my competition is clicking on me? Answer: It is likely to happen in the beginning. However, Google tracks click IPs and other sources to qualify the metrics. Google does not want you to be bid up and waste money so they remove charges from those clicks. I have tested this first-hand selling retail flowers online. I saw the actually clicks on my website, then compared that to what Google charged me and was pleased to see that Google did not charge for all the clicks. You need to understand this before starting your campaign. -Art
WHY DO YOU NEED
Adwords Mobile (pay-per-click ads) are your ticket to appearing in front of people who are on the go, looking for information, and often showing great intent to make a purchase.
Targeted campaign possibilities are growing, and you can count on our Bloomerang team to keep you ahead of the competition and produce quality traffic, 24/7.
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