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Are you analysing the correct PPC metrics?

To really understand your customers, it is important to continuously analyse any and all online marketing data. While it is excellent to see positive results, it is also crucial to understand why customers may not be converting after reaching your website via a pay per click (PPC) ad.

There are a number of online tracking tools enabling businesses to gauge marketing performance. One of our favourite tools is Google Analytics. The real power behind analysing data with a tool like this is understanding the important metrics, how to interpret them and create strategies to optimise performance based on a better understanding of your customers.

Once you have a better idea of who your customers are, you can test and drive various marketing tactics best suited to them. Regularly testing campaigns and analysing data will lead to a stronger comprehension of your brand and customer identity. 

Set KPIs

When creating content for advertising, the first thing you should ask yourself is ‘What do I want to achieve?’ By setting yourself an objective, not only will your content be much more likely to make sense, but you will be able to measure performance against these objectives.

A Key Performance Indicator (or KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Digital Marketing KPIs are linked directly to your online marketing strategy. The data could include anything from online revenue growth and website traffic to engagement rate and number of leads.

Choosing What To Track

There is no ‘one size fits all’ approach to choosing which KPIs a Digital Marketer should track. It varies from business to business and is based hugely on the business goals. 

For example, if brand awareness is an area you would like to push, then you should focus on reach and impressions. These metrics will give you an idea of just how many people have seen your brand name and messaging. Additionally, you may want to track your organic or direct traffic to give you an idea of how many people are typing your brand name into their search bar because they have previously been made aware of your company.

It’s also important to understand the metrics you are tracking. Are they core, directional or simply ‘vanity’ metrics?

Key Conversion-Driven Metrics

Utilising the three metric categories discussed above, these are the key metrics we would recommend analysing for your conversion-driven eCommerce ad campaigns:

  • Conversions: Probably the most obvious metric to track. This will be the event you consider to be the most important (e.g., a transaction or goal such as an enquiry form submission).
  • CPA (Cost per Acquisition/Conversion): Provides an understanding of how much you pay towards each of your goals.
  • Return On Ad Spend (ROAS): Perhaps the most important metric – your gross profit produced by paid advertising conversions. 
  • Conversion Rate: Percentage of people who clicked on your ad and then converted.
  • Click-through Rate (CTR): How many people are clicking through to your website once they have seen your ad?
  • Average Cost Per Click (CPC): How much do your clicks cost and how many can you achieve within your daily budget?
  • Impressions: The number of times your ad has been viewed. A fantastic metric for brand awareness but purely ‘vanity’ for a conversion-driven campaign. 
  • Optimisation Score: The score given by Google based on how many recommended campaign changes you make.

By determining your goals and analysing your key metrics, you will be able to improve your marketing performance due to your better understanding of your audience. The team of experts at teclan is always here to support and advise you with any questions you may have about your marketing performance. Get in touch to learn more about how we can help you achieve your business aspirations.

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