As Bill Gates states, ‘Internet has become the town square for the global village.’ With the onset of the COVID-19 pandemic, everything we never thought could not be done without personal interaction is now being done online. So is marketing.
With a paradigm shift of marketing from offline to online, Google AdWords has become a key player in the digital advertising space.
The main reason for it being the head honcho is its unparalleled reach, credibility, affordability, and the feature of different metrics that come in handy when the advertiser wants to measure the impact of the advertising as a reference for future campaigns.
There is a plethora of metrics that one can use, but some offer a more comprehensive perspective. We have listed the 5 important metrics that every business should track to make sense of the impact of the current advertisement campaign being run by them.
1. Click-Through Rate (CTR)
Your campaign’s CTR is a measure of how your advertisements and keywords are important to your target audience.
Click-Through Rate (CTR) = Number of Clicks ÷ Number of Impressions.
You can find that it can improve CTR and your campaigns’ overall health simply by testing new ad copies, applying geotargeting, and optimizing keywords for your accounts.
The click-through rate of keywords and ads will have the most critical effect on Google AdWords campaigns in most cases.
This is mainly because the CTR shows the target audience how important and persuasive commercials are. You can study the CTR to identify the right ads and keywords that should be used from the customer’s viewpoint.
2. Quality Score (QS)
The Quality Score (QS) is how Google tests the keywords’ importance. The main aim of Google is to provide online searchers with the most important and useful information.
You can use QS to calculate how much Google values your ads when compared to your competitors.
Quality Score = Keyword relevance, ad relevance, and URL relevance + User experience
When optimizing your accounts, QS is a valuable metric you can constantly refer to. If your Google Advertising strategy includes keywords and ad groups that target rival terms, you should always keep your QS above 5 (4 should be the absolute minimum).
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3. Conversion Rate (CR)
Conversion Rate (CR) is basically the number of users landing on your page who clicked on your ads and continued to complete the identified objective. When a client makes an order, this is always done, but you may identify other targets, such as filling out forms or email sign-ups.
Conversion Rate = Number of conversions ÷ Number of visitors.
Ideally, A good conversion rate means that the cash you spend is actually created by the future income (return on investment).
4. Cost Per Conversion (CPC)
With the Cost Perversion (CPC) metric, the total cash you spend when someone converts into a customer via PPC marketing can be tracked.
Also called Cost per Actions (CPA) sometimes, this reporting metric considers your customers’ behavior during the entire process, unlike other metrics, and can provide you with insight into ways to enhance your landing pages’ user experience.
Cost Per Conversion = Total cost ÷ Total actions
A lower CPC means that the campaign is more profitable, allowing more volume to be moved.
If you’re wondering which advertising channel will get you the most out of your efforts, read this blog here to understand what’s best for your business.
5. Search Impressions Share
Search Impression Share identifies the potential number of total impressions that can be seen from your campaigns.
This measure also tells you the expected demand for a particular Google product and how you stack up with your competition’s PPC marketing efforts.
Search Impression Share = Number of impressions received ÷ Maximum a potential number of ideas you’re eligible to win.
If you are dealing with a low Search Impression Share, then you can presume that you lack opportunities for your account to be under-optimized.
In this age of excessive data, there is no space for marketing campaigns with low ROI. Keeping track of the above metrics will be a great way to keep track of the progress being made by your business.