7 Key PPC KPIs Every Business Should Track in 2024

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Did you know? The average spending for PPC marketing is projected to be $190.5 billion in 2024. This is just predicted data. Imagine for yourself how competitive businesses have become with expanded digitalization. 

In this fast-pacing economy, if you want your business to survive, implementing only PPC advertising is not enough. You also need to keep track of the essential key performance indicators (KPIs) to achieve desired results with the minimum spending. If you fail to do that, you might start losing money without any profitable conversions. 

Continuing to run an advertisement that is not working for your business can lead to high spendings and lost authority.

Managing and optimizing a PPC campaign can be critical. An experienced PPC marketing company can help you save over-expenditure on ads and consistent efforts.

In this blog, we’ll explore the 7 Key PPC KPIs every business should track to achieve maximize ROI for the efforts spent on ad campaign. But before that, let’s go through the basics of PPC marketing and steps required for running an ad campaign.

What is PPC Marketing and How to Run an Ad Campaign?

Pay-Per-Click marketing is a digital advertising approach where a bid amount is deducted every time an ad is clicked. It is the best way to enhance your business online visibility and get conversion without worrying about the organic reach.

There are various channels where you can run your PPC ad campaign such as Google and other search engines, social media channels and websites.

When you run a campaign, your ads usually appear at the top of search engine result pages or in between social media scrolling, making it visible for potential customers. To run a successful ad, you are required to follow the below steps,

• Keyword Research – Researching the right keyword is as important as buying the right shoe size.
• Ad Creation – Creating an ad is the key part of the entire process as it is what your audience is going to visit.
• Landing Page Optimization – If you want to attract the right traffic, this is an essential step.
• Bid Management – Placing the right bids can help you get the maximized ROAS.
• Campaign Settings – You can set up ads based on geographic location and budget to ensure smooth execution.
• Performance Tracking – Analyzing PPC KPIs allows you to modify or stop your ads as and when required.
• A/B Testing – This approach helps identifying the best way to achieve your desired results as it includes trying and testing different ad copies, landing pages and keywords.

Now that we know how an ad campaign is launched and run, let’s move forward to the topic we are here for.

7 PPC Advertising Metrics Businesses Need to Track and Analyze in 2024

It’s crucial to track and analyze PPC KPIs for optimizing your PPC campaign. Here are the 7 important metrics to focus on,

Quality Score

One important statistic that Google AdWords uses to evaluate the quality and relevancy of your PPC advertising, and keywords is Quality Score. The quality of your landing page, the relevance of your ad copy, the click-through rate (CTR), and the relevance of each keyword to its ad group are some of the elements that decide it. 

Better ad positions and reduced costs per click (CPC) are two benefits of having a higher Quality Score. This measure is essential since it has a direct impact on the visibility and cost-effectiveness of your campaign.

Developing highly relevant advertisements and user-friendly landing pages is essential to raising your Quality Score. 

Ad Ranking

The position your ad holds on the search engine results page (SERP) is known as its ad ranking.

It is determined by considering your bid amount, Quality Score, and the predetermined effects of various ad formats and extensions. Your ad will be more visible and likely to be clicked if it has a higher ad rank and is shown at the top of the SERP. 

Ad ranking matters because it affects your ad’s cost per click as well as how much exposure it receives. Focus on raising your Quality Score and maximizing your bids to guarantee that your advertisements show up in the best spots if you want to raise your ad rank. 

Click through Rate (CTR)

The ratio of users who click on your advertisement to the total number of impressions it receives is known as the click-through rate, or CTR.

It’s a crucial sign of how appealing and relevant your advertisement is to the target market. A high CTR indicates that consumers are responding favorably to your advertisement, increasing traffic to your landing page. 

Creating captivating ad content, utilizing relevant keywords, and making sure your ad stays are all necessary to increase CTR.

In addition to raising your Quality Score, a high CTR raises the possibility that your campaign’s objectives such as sales, sign-ups, or other conversions will be met. 

Conversion Rate

The percentage of users that click on your advertisement and complete the intended action such as making a purchase, completing a form, or subscribing to a newsletter is known as the conversion rate.

It is calculated by dividing the total number of ad clicks by the number of conversions. 

This PPC KPI is important since it shows how well your ad campaign is generating significant results. When your landing page and advertisement are in line with user intent, you’ll get a high conversion rate.

Make sure your landing pages are captivating, your calls to action are obvious, and your user experience is frictionless to increase conversion rates. 

Cost per Aquisition (CPA)

The amount you spend on each conversion is known as your cost per acquisition, or CPA. It is computed by dividing your campaign’s total cost by the quantity of conversions.

CPA assists you in determining whether your PPC attempts to generate leads or new clients are cost-effective. 

Maintaining a healthy ROI depends on receiving more conversions on your budget, which is what a lower CPA indicates. Optimize your ad targeting, raise your Quality Score, and improve your landing pages to lower CPA.

Making regular adjustments to your campaign based on CPA data might result in more profitable and effective advertising strategies. 

Bounce Rate

The percentage of users that click on your advertisement but leave your website without taking any further action is known as your “bounce rate.” A high bounce rate may be a sign that users aren’t finding your landing page interesting or relevant.

Make sure your landing page loads quickly, has clear and appealing calls to action, and is closely matched with the content of your ads to reduce bounce rates.

Having a user-friendly design and interesting content will help visitors stay on your website longer. 

Return on Ad Spend (ROAS)

The revenue gained for each dollar spent on advertising is measured by return on ad spend, or ROAS. It is computed by dividing your PPC campaign’s income by the entire amount of money you spent on ads.

One of the most important metrics for figuring out how profitable your campaigns are is ROAS. 

Enhancing your landing page to increase conversions, raising your Quality Score, and optimizing your keywords and advertisements for better performance are the main ways to increase ROAS.

You may maximize your overall return on investment by routinely tracking and modifying your campaign based on ROAS data. 

Conclusion

Any marketing approach requires spending to achieve defined business objectives, especially PPC advertising. But to ensure that you are bidding the right amount for the result you are getting. It is important to monitor specific PPC KPIs. It will not only help make necessary changes but also provide a basis for future ad runs. 

In this blog, we have covered 7 most essential PPC KPIs every business should track. Identifying which metrics are required for assessment based on your business goals is significant. 

With so many businesses running their ads on Google and other social media platforms, if you are not doing it strategically, it is difficult for your business to attract targeted traffic.

The most efficient way for increasing conversions is to continuously make changes in ad campaigns based on the analytics. If you don’t want to miss out evaluating the right PPC metrics and run an effective ad campaign, hiring a leading PPC management company in California is the wisest option. They can help you plan a calculated strategy and attain maximized campaign performance.