Top 6 PPC KPIs One Should Track

Top 6 PPC KPIs One Should Track: –

PPC advertisers have so much data at their fingertips. Identify which paid search KPIs are most important and when to use them.

The best thing about PPC is that you have so much data at your fingertips and you can make changes in real-time.

There are so many great things to track and each one has its own purpose.

Each campaign must have priority KPIs.

Before developing a PPC campaign, it is important to determine what success looks like.

KPIs support some of the most common marketing goals.

The most important metric to track should be the one that aligns with the end goal of the campaign.

1. Measurement of sales increase:

Most PPC campaigns tend to work up to the goal of generating more sales, whether those sales come from e-commerce purchases, in-store sales, or leads that will eventually result in sales.

The starting points may be different, but the goal is usually the same.

If the PPC campaign is designed to increase sales, the most important KPIs that can be tracked are the ones that will ultimately help track whether PPC is affecting sales.

Measure the increase in sales for e-commerce:

Measuring sales growth is easier for e-commerce companies, as they have the advantage of tracking purchase data as it occurs.

For these companies, having a track to measure sales (along with additional purchase data) is a critical KPI.

Measurement of sales increase for purchases in the store:

Measuring in-store purchases can be a bit more complicated, but there are ways that advertisers can make some inferences about in-store sales.

By using source data to connect in-store transactions with digital advertising campaigns.

Offering people to order in advance or offering coupons to use when they enter the store.

In the absence of the ability to match transaction data, qualified advertisers can measure the store visit metric to estimate the face-to-face traffic generated through their campaigns.

Tracking the number of people using the location extension to get directions could be another way to measure the value of your campaigns.

Measurement of sales increase for lead generation:

Measuring sales growth for lead generation campaigns is all about tracking the entire customer journey.

For most lead generation companies, lead volume and cost per lead are important KPIs to keep track of, but that’s just the tip of the iceberg, as not all leads are created equal.

It’s important to keep track of marketing qualified leads, sales qualified leads and pipeline to sales.

Measuring lead funnel conversion rates helps advertisers understand which channels, campaigns, and targeting options are generating the most valuable leads who are most likely to generate sales.

Measurement of sales increase through marketing mix modelling:

A clear line of sight from clicks to sales, and there’s no way to track from the first interaction to closing marketing mix modelling.

With the marketing mix model, advertisers aim to monitor trends by looking at the performance baseline and then monitor performance against the baseline after certain marketing efforts have begun.

2. Income:

The goal of increasing sales is almost always with the broader, long-term goal of increasing revenue.

For e-commerce businesses, this is straightforward and can be tracked alongside sales when purchasing tracking is implemented.

Advertisers who track their data throughout offline sales processes may also collect this data.

However, advertisers who have gaps between their online presence and their offline sales process may have to extrapolate this data using estimated sales data and average order values.

Even if the number is extrapolated, it is ideal to have a rough idea of ​​how the campaigns are impacting the bottom line, if that is the goal of the campaign.

3. Return on advertising investment (ROAS):

To go a step further, it helps to track revenue as a share of ad spend.

ROAS is calculated by dividing revenue by ad spend.

This is a metric that can be used as an indicator to monitor whether ad spend is driving expected value, especially as the scale of the campaign.

4. Profit and return on investment (ROI):

ROAS doesn’t factor in any other costs beyond ad spend, so it’s important to keep an eye on profit and return on investment (ROI) as well.

This ensures that campaigns continue to generate value even after all other costs are accounted for.

To go one step further, it is ideal for advertisers to understand the lifetime value of their customers so that their calculations take into account future value.

5. Increased funnel engagement and audience performance:

For some campaigns, the goal may be less focused on sales and more focused on increased funnel awareness and engagement.

One could argue that measuring sales data is still important, but it can be harder to attribute in some cases.

There are other engagement metrics worth monitoring.

Brand Lift Facts:

Social advertising channels allow advertisers to conduct brand awareness studies to monitor the impact of their campaign on brand awareness compared to a control group of people who did not see their ads.

Facebook even has an estimated brand recall metric that can be used outside of Brand Lift studies.

Brand Lift studies can be expensive, so they are not for everyone, but there are other ways to monitor brand awareness.

Brand search supervision:

An easy way to monitor the impact of brand awareness campaigns is through brand search volume trends. If awareness campaigns are working, you need to increase your brand search volume.

Post-press and assisted conversions:

top-of-the-funnel campaigns may not drive high conversions; if they are, excellent!

That’s a good metric to keep track of.

But if not, it can be helpful to monitor their long-term impact through post-press conversions and assisted conversions, assuming the buyer journey is not too long for cookies to track.

Micro conversion Terminations:

A great way to get more concrete data is to drive more funnel-to-micro-conversions traffic.

One can define the micro-conversion based on the objective of the campaign, for example; measuring how people interact with site resources.

  • How many video views did your landing page receive?
  • How many people downloaded the sales sheet for a product?
  • How many people subscribed to the newsletter?

These are all top-funnel actions that indicate that people were interested enough in the company to make an effort to learn more.

Create an audience to target additional content to them.

Audience engagement:

Build an audience from higher funnel engagement, keep an eye on that audience in Google Analytics Audience Report.

Check to see if they return to the site and complete additional micro-conversions and, more importantly, if they tend to exhibit long-term buyer behaviours.

6. Campaign health metrics:

Important for tracking campaign health metrics.

Call these KPIs because they are not usually the metrics that are closely related to marketing goals.

There are a million different metrics available on ad platforms, but these are some of the most fundamental.

Profitability metrics (CPC, CPV, CPM):

Initial engagement profitability is a good metric to look at, whether it’s CPC, CPM, CPV, or something else.

It’s worth keeping an eye on trends and identifying ways to improve the performance of your core campaigns.

Click for ratings:

Click-through rate is a valuable metric because it gives an idea of ​​how relevant your ads are to the people who see them.

A low click-through rate means that the ads could be improved or it means that they are not targeting the right audience for the purposes.

Conversion rate:

The conversion rate is indicative of whether the landing pages are relevant and well-optimized for conversion.

If the conversion rate is low, it could be that something on the site is not resonating, or it could be that the audience you are targeting is not the right one for the company or possibly it is simply not at the correct stage of the funnel. to take action.

Similarly, click-through rate monitoring conversion rate trends allow you to quickly spot changes for better or for worse.

Impression share:

It is useful to use impression share as an indicator of how much more scale could be obtained from existing campaigns, if the bid is more aggressive, or if more budget can be generated.

Commitment on the site:

Participation on the site is a good early indicator of whether the audience is interested in what is being sold.

Keeping an eye on things like bounce rate, average session length, and an average number of pages visited allows us to understand if the content seems to be resonating with potential customers.

If performance on the site appears poor, it will undoubtedly slow down.

Quality level:

Quality Score is one of the fundamental components of the auction, but it is still a health metric, not a KPI.

It is helpful to use the Quality Score to identify where campaigns have room for improvement, but always recommend that the Quality Score not be allowed to distract from the main objective.

For example, using dynamic insert improves CTR, which can improve quality score, but may have a lower impression-to-impression rate than other ads.

Improving quality scores could negatively impact conversion volume and profitability.

Work to improve the quality score always in support of the KPIs.


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