Therefore, if there are 200 opportunities that an ad could show (based on the specified criteria) and it shows 150 times, the search Impression share is 80%. Click Search terms at the top of the page, and then click Search terms in the drop-down that appears. This metric is a percentage of your impression share for a given campaign, ad group or keyword. Your email address will not be published. A healthy conversion rate means that the money you’re spending is actually generating profits (return on investment). Total cost:  $ 500Conversion value (revenue): $ 3000. Every conversion starts with a click. Now I am going to describe the 5 most important PPC metrics you should be tracking. Therefore, you want your ads to be displayed for every available opportunity and push the search impression share as close to 100% as possible. This is often achieved when a customer makes a purchase, but you can define several goals like email signups and filling out a form. Your Ad Position has a great impact on your Click Through Rate which is why you should always look at both metrics when evaluating. Think of CTR as the 5,000-foot view of your account’s performance since this metric reflects how many people are clicking on your ads. With a ROAS of 6, we generate $ 6 in revenue each time we spend $ 1 in Google Ads. All e-commerce shops should work with their average order value (basket size) so the total conversion value over time can grow without the number of sales increasing. In this post, I will go through the metrics which will help you determine the success of your PPC campaign on Google AdWords. You should always test different ads to find the constellation where you have the highest CTR. You must customize your AdWords account including search queries, ad copy and negative keywords in order to fit the trends from your AdWords data analysis. This is the position of your ad on Google paid search. Click-Through Rate . That’s why clicks are an early indicator of PPC campaign success.This KPI measures how many people clicked on your ad.Campaign managers often check in on accounts throughout the month to pause ads that are not performing and even increase the bids on ads that are.Clicks are a great KPI for that mid-month account performance checkup; however, the success of a campaign shouldn’t b… Impressions are one the most important AdWords metrics because it shows how many times your ad was displayed on a Google search result page based on matches between the keywords you use in your campaign and the terms and phrases within search queries. You may find that merely testing new ad copy, optimizing keywords, and applying geotargeting to your accounts can boost CTR and the overall health of your campaigns! Conversion Value (volume metric) Clicks are important, impressions are important, but, at the end of the day, every store owner cares about the total sales volume. You should look at these elements in order to identify your focus areas. In most cases, the Click Through Rate of ads and keywords can have the most significant impact on Google AdWords campaigns. In this case, we should look at price per acquisition/conversion, as we cannot calculate a ROAS (no revenue figures). Basically, you want to figure out what your potential customers respond best to. Also, I will assume there is a baseline of conversion tracking in your account. A high CTR is really what you are aiming for. Cost per conversion. Why ROI on your Google Adwords spend is so important. As you pay per click a low conversion rate can be a big challenge. In order to keep your performance at a high level, you need to analyze and interpret the data you get. Search Impression Share = Number of impressions received ÷ Maximum a potential Number of ideas you’re eligible to win. Most industries consider a Conversion Rate of 1-3% success, but this measurement of success will depend on your specific industry and customer base. They are absolutely essential for you in order for you to understand and evaluate your PPC performance. CPC is crucial to the success of your marketing campaign, and you should always refer back to this metric as you look to optimize your Google AdWords management strategies. If you scroll down, you can see the five main metrics that a Smart Campaign reports on: The main report shows impressions, clicks, ad spend, conversions, and map actions. You can use this information to identify which keywords are the most successful and to find new keywords to add to your account. Impressions. It is a great tool for understanding the basic costs of a campaign at a basic level. Click Through Rate is the ratio of views to clicks. Optimise for Clicks and Landing Page Conversion. The choice of metrics. Metrics are the basis of an Adwords report. Basically, ROAS is our return every time we spend $ 1 in Google Ads. You should always keep an eye on this KPI as it shows how appealing our ad is to your audience. Quality Score = Keyword relevance, and relevance, and URL relevance + User experience. The total conversion value is relevant to keep an eye on as it can easily increase and decrease even though the number of conversions is unchanged. You should compare the conversion rate from Google Ads with other channels in Google Analytics. When you work with your Quality Score, you can significantly reduce your costs and that's essential in order to have a profitable business. Return on Ad Spend is without a doubt one of my favourite Google AdWords metrics. Cost per acquisition focuses more on how much your business pays in order to attain a conversion. When working with Google Ads (formerly known as AdWords) you'll face a lot of numbers and Google Ads metrics. By doing this your ROI can be increased and desired campaign results can be ensured. You can look at Search Impression Share as a way to understand the broader market, and this is a valuable way to see how your broader PPC marketing strategy is working along with other available metrics. You should not overlook Cost Per Conversion because this Number tells you how much money you are spending on each Conversion. However, you should pay attention to how many of the relevant leads end up being customers and how much a typical job generates in revenue. Maybe a few small changes can improve your performance? You want to consider your account’s Conversion Rate because not only does it speak to how well your keywords, ads, and landing pages are performing, a high Conversion Rate also reduces your Cost Per Click. Conversion Rate (CR) refers to the Number of people who clicked your ads and proceeded to complete the desired goal on your landing page. You should always keep your QS above a 5 (4 should be the absolute minimum) unless your Google Ads strategy involves keywords and ad groups that target competitor terms. This is because PPC marketing is a direct attribution marketing channel that relies on user intent. If you're at a beginner level you should focus on learning the key metrics from the article and over time you will get a splendid understanding of the metrics so you at a later time can do comprehensive data analysis in Excel. Google’s algorithm uses several inputs to decide on QS, including: As you can see, QS is a valuable metric that you should frequently refer to when optimizing your accounts. They’re the numbers the C Suite wants to see when you say, “We’re running an ad campaign.” We’re talking returns, ROI, and the bottom line. Based on this, you can figure out the level of your CPA. For a beginner, this can be frustrating and overwhelming but in this article, I will introduce you to 9 of the most important AdWords performance metrics. By looking at the number of impressions, you get an overview of which campaigns getting the most exposure. This means that by driving qualified customers to optimize landing pages, your business can enjoy more sales while also spending less on each click. That said, I will go over the most important metrics to analyze and what they mean for your account. The initial stage of any facebook ad campaign is the optimisation for clicks. 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. It's easy to get bogged down in all of the options available in Facebook Ads Manager. If you have no conversion setup, please seek out the help of a Google Adwords Management Agency or Google Adwords Consultant. Be sure to check CTR, CPC, Impression Share, CR, and QS to reduce wasted spend and drive more conversions today! In addition, I would like to mention the PPC metric Search Impression Share. Return on Ad Spend (ROAS) Return on Ad spend (ROAS) is one of the very first metrics I would look … 1. Cost Per Conversion = Total cost ÷ Total actions. If you have a very low conversion rate (0,1-0,5%), it might be difficult to generate a reasonable Return on Ad Spend as we'll have too high costs for every sale. Let's assume that you work as a photographer and your business goal is relevant leads (eg. Our last 3 examples are specific or particularly important key metrics for Google AdWords Display campaigns. It is easily evaluated by dividing clicks by ad impressions. The number of clicks is also important to look at in order to gain an understanding of the volume in a given time period. Google Ads impression share is one of your most important AdWords optimization metrics. The cost of each conversion is very different from industry to industry as competition, cost per click and conversion rate on the landing page are paid search metrics that will influence the results. It's important to keep an eye on this metric as it's one of the most important metrics for your business. These leads us to necessary having to look at 9 crucial metrics along the way. Quality Score (QS) is Google’s way of measuring the relevance of keywords. Click Through Rate. It's really important that you define this goal in order to determine which KPIs to look at when evaluating your AdWords campaigns. Google’s main objective is to provide the most relevant and valuable information to online searchers, and you can use QS as a way to measure how much Google trusts your ads compared to your competitors. The amount of money you spend each time someone converts through PPC marketing can be tracked with the Cost Per Conversion (CPC) metric. Ask yourself whether your ad text is interesting for your target group or your banners are trustworthy? Some of the advantages of a higher Quality Score include: Google uses QS to determine how often your ads show, where they show, and how much you pay for each click. Cost per click, the amount you pay for each click, is important because it ultimately determines the financial success of your campaigns. Your target audience should know they are accessing a relevant page for their query. The cost per thousand or CPM (Cost-per-Mille) is a bid strategy in which you do not pay for clicks but per 1000 Impressions of your ads in the Google Display Network. Let’s have a look to what matter in a good Adwords report. Your ads must be shown to give people who search for a chance to click on them and convert them. Besides, QS is a way to make sure that your ads are providing a positive experience to searches, and that your campaigns are relevant to search queries. Click-Through Rate: CTR is one of the most important metrics to benchmark when evaluating the effectiveness of your paid search efforts, because it’s a strong indication of how relevant your ads are to users. This site uses Akismet to reduce spam. Your ultimate goal is to produce conversions. CTR can be used to help you determine the quality … Impressions is the number of times our ad shows up in google. However, if you just look at these 11 metrics, you'll be on your way to better optimized, better performing campaigns. If you’re paying more to acquire a new client than that client is actually worth to your venture, then your Google ads campaign is failing because you’re not attaining ROI (return on investment). Use DashThis' PPC report template to start tracking all these metrics in no time! It is the job of keywords to get your ads shown, the role of ads to get people to click and go to your landing pages, and it is the job of your landing pages to get your customers to convert. If you are suffering from low Search Impression Share, then you can assume that your account is under-optimized that you are missing opportunities. It is essential for your ad campaign to perform well at all levels to achieve objectives such as selling more products online or getting high-quality leads. CPC is the foundation calculation for most Adwords campaigns. 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