Pay-Per-Click (PPC) advertising may often come off as a series of numbers and percentages. Behind those numbers, however, are indicators of, not only how well your campaigns are performing, but also whether or not you’re targeting the right audience or using an appropriate strategy to reach the KPIs you’ve set. To maximize your PPC campaigns’ performance, it’s important to extract the right data and know how to use it in your future decision making.
Take click through rate (CTR) for example. At its core, CTR captures the first spark of interest, the first touch point between an ad and its target audience. In 2020, an emerging e-commerce brand found that their carefully crafted ad campaign had a surprisingly low CTR. When they reviewed the ad copy, they found that while the design was visually appealing, the message was not resonating with their target audience. A simple change in the call to action from “Buy Now” to “Discover the Trend” resulted in a 25% increase from CTR. The lesson? Always tailor the message of your ad to the mindset of your target audience.
While CTR is an indicator of response to ads, Quality Score — especially on platforms like Google Ads — goes deeper. It is an aggregate measure of ad relevance, landing page quality, and other important factors. Take the case of a local bookstore trying to compete in the online space. The company had a respectable CTR, but a mediocre Quality Score. When the individual components were examined, it was found that the landing page was the weak link. A redesign that focused on usability and keyword targeting improved the Quality Score, lowered the Cost Per Click (CPC) and increased ad visibility.
However, the success of a campaign depends not only on the clicks, but also on what those clicks do. That brings us to the Conversion Rate. After investing heavily in ads, a high-end fashion retailer found that while traffic increased, sales did not. They were attracting users, but those users were not converting. Analysis showed that many customers abandoned their carts because of unexpected shipping costs. By offering free shipping on purchases over a certain amount, customers were encouraged to buy, resulting in a 35% increase in conversion rates.
When you understand cost per conversion, the story becomes even clearer. Imagine spending just $5 to get a customer to buy for $500. This metric is basically the happy ending that every advertiser strives for. Similarly, knowing where your ad appears via ad position can make a big difference. One up-and-coming SaaS company found that while it was not always the top ad, it got the most conversions when it was third on the search page. This provided it with the insights it needed to optimize its bidding strategy.
Finally, consider the impression share. When examining this metric, a global beverage brand found that it was missing out on nearly 40% of its potential audience due to catering to the wrong audience. By adjusting budgets and refining targeting, the company was able to capture a larger share of impressions and drive its brand awareness to new heights.
PPC isn’t just about crunching numbers. It’s a calculated approach at utilizing data. Sometimes strategies need tweaking or A/B testing, especially when consumers act counter – intuitively. By focusing on the right metrics, you can effectively reach your audience, building a loyal customer base and ensuring a solid return on your ad spend.
