To Manage PPC Accounts Look At 5 Important Metrics

A pay-per-click campaign where metrics are not kept is a hole over your wallet that is leaking your money out. A PPC account where statistics are not kept can easily cost you thousands of dollars per day. Most companies today cannot afford to give away thousands without producing results on the bottom line. So keeping metrics of your campaigns is a requirement for productive use of marketing budget. To manage PPC campaigns, you should look at five metrics for each and every ad.

(1) Cost per click (CPC). Everytime someone clicks on your ad, how much will it cost? If you pick too broad a word like “cars,” your PPC budget could be drained in a day. The more focused your keywords are and the narrower the range, the less you will need to pay-per-click. Before you run any PPC ad, you should know how much your keywords will cost and set a budget that will cover the expenses, or change your keywords to a sub-niche in your market that you can afford.

(2) Pages per visit. When a person clicks to your site, how many pages do they visit when they are there? This is especially important for any type of community/information site. The amount of pages they visit is a reflection of the site’s viral or stickiness factor. This can increase the likelihood of a return visit or build up of trust. This is a metric you can leave out though if you’re doing a straight add to landing page to action page.

(3) Average time on site. Important on a direct action page or information/social site. If this is the time for a landing page, it could be a good indication of how well your copy and/or call to action is. Too short or long could be an indication of bad copy or a problem with a call to action. On an information/social site it can indicate stickiness or possibly a bad navigation setup.

(4) Conversions. How many clicks produce a measurable result? This can be a sale, an opt- in to a mailing list, phone call, file download or any other result that can be measured. PPC campaigns need to product a result (conversion). If they are not, something needs to be changed to produce the desired result and justify costs.

(5) Cost per conversion. For every successful conversion, how much does that particular action cost? To keep track of your PPC account campaign efficiency you need to know this metric. If it costs you $10 to make $90 profit then you may have an effective campaign. But if you pay $100 to make $50 profit, that may mean you require some work on your campaign.

Managing PPC campaigns can be very cost-effective or very expensive to companies marketing department budgets. The most important part is knowing your metrics so you know your cost and can figure out ways to make unprofitable campaigns profitable and to take profitable campaigns and increase their return on investment. These five metrics should be known in all current and future PPC campaigns.