How to Define KPIs for a Google Ads Campaign

Key performance indicators are key to digital marketing’s success. Tracking your key performance indicators in PPC will help you make better, data-backed decisions about your campaigns. This is the best way to show your boss and clients the effectiveness of your strategy.

As your campaign goals change, it is important to link your Google Ads KPIs. Setting realistic goals for each Google Ads campaign is key to success. Then, choose the metrics that show you if you have achieved them.

The Click-Through Rate

Click-through rates (CTR) are a measure of the effectiveness of your campaign. This tells you how many people clicked through to your ad once they’ve seen it.

It is simply a matter of dividing the number of clicks in the reporting period by the total impressions (people who saw the ad) to measure it.

Keyword Performance

In 2020, conducting extensive keyword research and understanding search intent will remain the backbone of Google Ads campaigns. You must monitor the performance of keywords to ensure you get the best out of your ads.

Monitor your keywords’ quality score and CTR to determine if they are performing well. Based on the information you gather, you can remove keywords that aren’t working for you. It is also possible to determine who sees your ads.

Cost per Click

Marketers know how to set budgets for their Google Ads campaigns and what they can spend on their PPC campaigns. It doesn’t necessarily mean you will spend the budget or bids you have set in advance.

The bid price will depend on the other advertisers you must compete against during PPC ad Auctions. You will therefore need to pay a higher price for the bid.

Conversion Rate

Remember that Google Ads is another channel to direct people to your website. This is only half of the job. The second half of the job is to motivate those visitors to take desired actions.

Conversions can mean many things in different industries. A conversion in online retail is, for example, getting someone to click on your ad and make a purchase. Conversion could also mean booking an appointment or downloading an ebook.

Cost per Acquisition

This KPI tells you how much ROI your campaigns are generating. Let’s suppose you spend $200 to acquire a new customer. If your average customer spends $1000, then that’s great. However, if they spend $100, you are losing $100 per customer.

The average CPA benchmark across all sectors is $48.96. However, this number can vary depending on your niche. The average CPA in the tech sector is $116.61. In the travel and hospitality industry, it’s $44.73. To understand how your campaigns are performing, it’s important to know industry benchmarks.

Qualitative Score

Google created the quality score, a metric measuring how relevant an ad is. It uses metrics such as CTR, ad formats, and relevance of landing pages to determine if your ad is meeting the needs of your target audience.

The rules remain the same, even though your quality score may change. Google rates your ads on a scale of 0-10. A good score is higher than 7. To increase your campaigns’ effectiveness, you should invest more.

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