Google holds the largest share in global online searches. According to the latest report dated February 2018, Google had 62.6% of online searches share worldwide.
This makes Google Adwords the primary source of paid advertising for almost all the internet users.
The complex functionality, large number of resources and availability of market data makes Google Adwords a robust system which isn’t easily comprehensible by a novice or an amateur marketer.
Here are 5 major metrics which you can keep track to determine if your paid marketing is a hit or a flop.
Anytime your ad is shown on the SERP or search result page in Google or any other Google Network, this counts as an impression. It basically implies the number of times your ad has been seen in the result pages, however, it doesn’t guarantee if the user actually saw the ad.
The higher the impression the better the position of your ad.
The cost implies the total cost spent on running a certain paid campaign in Google Adwords. If you’re spending more than what you have expected, you need to lower the budget to reduce the cost. Cost helps to determine your ROI, hence, keeping the cost and estimate on check is a must.
The overall amount of clicks your ad has received through Google or its partner sites and networks. The higher the clicks, the better the visibility of your ad and its chances of conversion. The ads which churn less amount of clicks implies that they need an update or revamp to make them more user-centric.
Average CPC implies the estimated average cost you’re willing to pay for a user to click your ad a single time. Your average cost-per-click (CPC) is calculated by dividing the cost of your clicks (or the amount you’ve spent on the campaign thus far) by the total number of clicks.
A smart marketer will always to try get more clicks at lesser avg. cpc to maintain the budget while getting more clicks.
A Conversion is counted whenever a user clicks your ad, arrives in your landing page and takes an action that you’ve defined as important or goal-centric, example; sign-up, download, purchases etc.
Conversions are tracked graphically, as well as by campaign and to determine cost-per-acquisition (CPA) and conversion rate.
Check Digital Marketing to learn more about effective paid marketing.