The Paid Media KPIs You Need to Be Measuring

By Jacob Havenridge

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There’s no avoiding it: Managing an effective Paid Search account means getting up close and personal with the numbers. It means wading through large data sets to quantify what exactly they mean for your account’s performance. Moreover, it means taking these metrics and using them to drive your account in the direction needed to increase its ability to produce profit. This is no easy task. To keep from drowning in this sea of data, you need to arm yourself with the knowledge to not only swim, but breathe the water. This would all be a much easier undertaking if there weren’t so many KPIs to choose from. Which ones matter, and which should you focus your attention on to ensure your account is successful? To help you get to where you can make that choice, we’ve put together a list of all the KPIs that should matter to you, along with some context as to why.

But before we dive into that, it’s also important to note that the actual KPIs you use to define the success and drive the optimization of your account will vary greatly depending on the overall goal of your campaigns. If, for instance, you are putting together a branding campaign to increase your company’s presence in its vertical, impression numbers will be much more important to you than if you were building a search campaign targeting highly qualified traffic based on search intent.

Not to say that impressions are unimportant in search campaigns—far from it—but understanding the context behind your campaign and its goal will make deciding which KPIs to focus on a much easier task. With this in mind, let’s take a look at some KPIs you should be considering in all of your campaigns.

The Basics

These are some of the basic KPIs you will want to be familiar with before launching your accounts.

Clicks—This KPI is an indication of the number of clicks your campaign/ad group/keyword has received. Multiply it by your average CPC to get your total cost, or divide it by your impressions to get your average CTR. Consider garnering a click as the lowest-level conversion in your account.

Impressions—Unlike clicks, this is the number of times your ad or keyword has been served, regardless of whether it’s been interacted with.

Click-Through Rate (CTR)—Your click-through rate is the percentage of impressions that are turning into clicks. These vary by vertical and account type, but a healthy CTR is the foundation for every high-performing campaign.

Cost Per Click (CPC)—The cost per click is how much you are spending on a per-click basis for the traffic you are driving through your account. Again, these can vary wildly, but keeping your CPC in a range you can afford in your budget is an important aspect to consider in your accounts.

Cost—This one is fairly self-evident. Cost is simply the total amount in a given time frame you have spent on the account, campaign, ad, or keyword in question. Keep an eye on this one, though, because overspending on any Go to the full article.

Source:: Business 2 Community

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