Google Ad Words KPIs and PPC

Running a successful Google Adwords pay-per-click (PPC) campaign requires forethought and planning, writing effective copy with a well-thought-out strategy – and as any marketer knows, successful strategies need to clearly define your end state. 

Site owners will want to have clear goals in mind before they begin the campaign. To know whether or not they have achieved these goals, site owners will also want to have clearly defined metrics that help them gauge their campaign’s success. These metrics are also known as key performance indicators (KPI).

What is PPC?

First, a definition: PPC stands for “pay-per-click.” It’s a form of digital advertising where the advertiser pays for advertising space on a search engine such as Google. The amount the advertiser pays depends on the number of times search engine users click on their link. 

This is a more cost-efficient way to use digital advertising. It ensures that there is at least some level of engagement site owners are paying for. Compare this to more traditional advertising. Site owners would pay a flat fee for a billboard or an ad on a bus. 

If people don’t interact with that ad, there’s no change to the original fee you paid. Once someone purchased the ad, they are then at the mercy of the ad’s location to impact the  return on investment (ROI). 

With PPC, site owners have to develop compelling copy combined with superior search placement to increase engagement. And again, they only pay based on that engagement.

What is a KPI?

KPI stands for “key performance indicators.” It’s a term used to measure the success of a specific campaign. It’s the metrics site owners use to gauge whether or not they are achieving your intended result. 

Marketing plans will vary in size and scope depending on a number of factors, but there are some commonalities. Every plan has a mission with strategies and tactics to help achieve that mission. There are also metrics tied into each of the plan’s goals (if there are more than one). That is where KPI comes into play. 

 

Let’s say a site owner is running an email marketing campaign in which they want to drive awareness of their website. A KPI they would be interested to measure would be their click-through rate to their website from the emails sent through their campaign. 

Another example would be for a blog post. If a site owner has a call-to-action (CTA) listed at the close of a post, a KPI they would want to examine would be the number of visitors who followed the direction on that CTA. That helps site owners understand how compelling and persuasive the blog content was. It also tells a site owner if their CTA language needs tweaking. 

The KPIs tell the story of how well site owners are achieving what they set out to achieve. The key is to define these before the campaign begins. They have to begin knowing where they want to end up, otherwise, their plan might be skewed and otherwise unsuccessful.

How to track your KPIs

KPI stands for “key performance indicators.” It’s a term used to measure the success of a specific campaign. It’s the metrics site owners use to gauge whether or not they are achieving your intended result. 

Marketing plans will vary in size and scope depending on a number of factors, but there are some commonalities. Every plan has a mission with strategies and tactics to help achieve that mission. There are also metrics tied into each of the plan’s goals (if there are more than one). That is where KPI comes into play. 

 

Let’s say a site owner is running an email marketing campaign in which they want to drive awareness of their website. A KPI they would be interested to measure would be their click-through rate to their website from the emails sent through their campaign. 

Another example would be for a blog post. If a site owner has a call-to-action (CTA) listed at the close of a post, a KPI they would want to examine would be the number of visitors who followed the direction on that CTA. That helps site owners understand how compelling and persuasive the blog content was. It also tells a site owner if their CTA language needs tweaking. 

The KPIs tell the story of how well site owners are achieving what they set out to achieve. The key is to define these before the campaign begins. They have to begin knowing where they want to end up, otherwise, their plan might be skewed and otherwise unsuccessful.

Site owners can use Google Adwords to set up their PPC campaign. Once they do that, they will be able to track ad performance within Google Ads. If a site owner is wondering how you get that information, the platform has you covered.

 

Google has a fairly comprehensive dashboard that will generate the data site owners need with all the KPIs they want to evaluate. It’s a user-friendly system that creates clear, concise reports they can use to review on their own or to brief others within their organization.

 

What KPI a site owner focuses on will depend greatly on the type of PPC campaign they are operating. Along with what the site owner’s specific business goals are. That said, there are some high-level best practices for KPIs site owners will want to look out for.

The most important PPC KPI to track in your Google Adwords campaign

Again, the KPIs may vary depending on your individual team goals, but below are some important PPC KPIs that site owners  likely want to keep an eye on to understand how successful their campaign is.

Click-through rate

This is the number of search engine users that click the link. This doesn’t tell the entire story – in fact, if all site owners look at its click-through rate, they will be woefully disappointed in translating that to their overall success. But it’s foundational data that establishes a baseline for them. 

Who clicks on the link is just the first level of engagement for a PPC ad. However, it’s easier to understand subsequent interactions when site owners understand just how many people are clicking the initial link.

Impressions

This is another foundational piece of data that doesn’t tell the whole story, but begins to paint a picture. Impressions are the specific number of people who viewed the specific link. 

That doesn’t mean they clicked on it – just that they saw the link. Impressions and click-through rate are the KPIs that set the table for other, more involved metrics you can look at later.

Cost-Per-Click (CPC)

A site’s click-through rate tells the site owner the percentage of people who are clicking a link. But how much it is important to determine how much those clicks may be costing the site owner. 

Cost-Per-Click (CPC) helps measure just how much site owners are spending for those clicks. This one’s simple to determine as well: take the total ad spend and divide it by the number of clicks you received. There’s the CPC. 

The CPC measurement is important mainly because it helps determine ROI. It will help the site owner more accurately determine the ROI for the PPC campaign as a whole.

Conversion rate

This is the most important metric of all, and the KPI that all others should logically feed into. A conversion rate represents the number of people who clicked the link, browsed the offering, and then completed a purchase to become a customer. This KPI taps into the ultimate standard for success. 

This list of KPIs isn’t comprehensive, but it’s a great start if you’re looking to launch a Google Adwords PPC campaign.

We Can Help

At Webserv we have a team of highly skilled and experienced PPC specialists. We pride ourselves on our comprehensive approach to digital marketing. Do not wait to get started, we are ready to help site owners reach their goals and increase their ROI. 

Contact us today to start a consultation and learn more about our services.

Want More Posts Like This? Sign up for our Newsletter!