Pay-per-click (PPC) advertising enables your brand to reach consumers on the platforms and search engines they use most often. Sixty-five percent of consumers click on PPC ads, which generates twice as many website visitors as SEO alone. 

But to harness this tool’s full potential, it’s vital to track and analyze the right PPC metrics. Here’s everything you need to know about these metrics, how to prioritize them in your brand’s marketing efforts, and what the future evolution of PPC metrics could entail.

The Most Important PPC Metrics to Track

Before we dive into how PPC can contribute to overall marketing success, let’s run through the most crucial PPC metrics to keep tabs on. Monitoring and analyzing these metrics—then using them to inform each PPC campaign—will ensure that you increase brand awareness, attract the interest of consumers, and ultimately maximize ROI.

Click Through Rate (CTR)

CTR measures the ratio of users who click on your ads to the number of total user views and impressions. A high CTR shows that your ads are compelling, relevant, and actionable enough for the audience to interact with them. This PPC metric also indicates how effectively these ads utilize keywords or other copy to generate more clicks.   

Cost Per Click (CPC)

CPC calculates the amount you’ll be charged each time a consumer clicks on one of your PPC ads. Monitoring the CPC will help you determine how to manage, allocate, and streamline advertising costs to secure an optimal ROI. It also allows you to fine-tune PPC bids to balance the performance and expenditure strategically.

Conversion Rate (CVR)

CVR refers to the percentage of visitors who complete the next action (i.e., making a purchase, subscribing to an email list, etc.) after the ads take them to your website. This metric tracks how successfully ads translate into business objectives. A high CVR indicates that your PPC campaign and site user experience will yield conversions. 

Cost Per Acquisition (CPA)

CPA measures the overall cost incurred to help you achieve a conversion or a new customer acquisition. Evaluating the CPA tells you whether the financial output required to secure this customer is worth the business revenue they generate. Consider this PPC metric a barometer to see how profitable your advertising efforts are.

Return on Ad Spend (ROAS)

ROAS calculates the revenue you earn for each dollar spent on advertising. It is a comprehensive metric that looks at total PPC revenue generation to determine how valuable and successful the campaign is. A strong ROAS is about a 4:1 ratio, which averages $4 in revenue for $1 in advertising costs.

How PPC Metrics Connect with Each Other

Because many PPC metrics overlap, a change or fluctuation in one metric will often impact the others. Here are a few examples of how these metrics intersect:

• CTR and CVR: A high CTR can result in more clicks, but if your website’s landing page is not optimized, those clicks might not convert, leading to a low CVR.
• CPC and CPA: Lowering the CPC can help streamline your advertising costs, but the overall CPA might increase if this yields fewer acquisitions and conversions.
• ROAS and CPA: Since ROAS focuses on revenue and CPA focuses on expenditure, ensuring both metrics are balanced will maximize the campaign’s success.

Prioritizing PPC Metrics in Your Marketing Plan

Now that you know which PPC metrics to focus on and how these data points correlate, let’s discuss how to harness them most effectively. Here are a few steps to refresh your brand’s marketing strategy with PPC metrics.  

1. Define Clear Goals for the Campaign: Establish your primary objective—is it to increase brand awareness, generate new leads, or secure more transactions? This primary goal will dictate which PPC metrics to pay the closest attention to.
2. Optimize the Relevance of Your Ads: Monitor CTR to ensure your ads resonate with the target audience. Then, use this information to retool the copy, visuals, keywords, or other elements to ensure your campaign stands out. 
3. Enhance Your Site’s User Experience: Leverage CVR as a benchmark to optimize your website landing pages. This metric will ensure a user-friendly experience when consumers click from ads to the site, which will promote more conversions.
4. Adjust and Pivot to Increase the ROI: Evaluate ROAS and CPA to determine the financial success of each PPC campaign so you can make tactical decisions on how to allocate the budget and bolster revenue in future campaigns.

Predicting the Evolution of PPC Metrics

Over the years, PPC metrics have transitioned from basic measurements to more sophisticated, in-depth analytics. Some data points (e.g., the average position of PPC ads on a webpage) are now obsolete, while others, such as clicks, impressions, conversions, and ROI, still carry serious weight. However, as with other marketing trends, PPC is not static but constantly evolving. Here are a few projections of the future for PPC advertising.  

• Artificial Intelligence: AI and machine learning could allow your business to target ads with more precision based on real-time, customized user behavior insights.
• Attribution Models: Enhanced attribution models will offer a more comprehensive look into the customer journey. This helps marketers attribute conversions more accurately to specific ads or consumer touchpoints, increasing overall sales.
• Cross-Channel Metrics: As multi-channel marketing becomes more prevalent, PPC metrics must offer a holistic view of the ads’ performance across different networks, from search engines and social media to video platforms and mobile apps.
• Customer Lifetime Value: In addition to the immediate conversion rates, marketing tactics must also adapt to focus on longer-term PPC metrics, like Customer Lifetime Value, to monitor how much revenue each acquisition will bring over time.

Take Your Brand to the Next Level with PPC

The right PPC metrics are vital for the success of current and future advertising efforts. When you prioritize these metrics and use them to inform decision-making, you can fine-tune strategies for better performance and a higher ROI. 

If you want to take the next step toward a PPC campaign that will achieve your business goals, contact 10xDigital. Our team of online marketing specialists will create, manage, and optimize a PPC strategy to attract more consumers and help your brand maintain a successful, competitive edge. Reach out to us now, and let’s get started!