Posted by James Lee on 9th March 2011

6 Ways to Measure PPC Ad Performance

Never forget that your ads are the most visible part of your PPC campaign. They are often overlooked in favor of keyword lists and bid management, but they shouldn’t be. Part of the problem is that the available tools to measure and manage your ads are not located in one convenient location. However, don’t let that stop you from making the best possible decisions about your ads, whether editing, adding, or pausing. Here are six basic but essential metrics to evaluate your ads with.

 Click Through Rate (CTR)
Where? Google Adwords, Ads Tab
What? Click through rate: The percentage of clicks out of the total number of impressions.
What it tells you: How many people are clicking on your ad, obviously, but also how attractive / relevant to the search query your ad copy is. (Don’t forget to take into account ad rank when comparing two ad copies with different CTRs.)

Conversions
Where? Google Adwords, Ads Tab
What? How many conversions were generated by each ad.
What it tells you: How successful an ad is at getting a prospect to convert; relevancy of your ad to the offer on your site as well as to the original search query. Generally a better indication of ad quality than CTR, especially when paired with CPV. 

Cost Per Conversion (CPV)
Where? Google Adwords, Ads Tab
What? Cost per conversion
What it tells you: How much the average cost per conversion was on each ad; its profitability compared to other ads. A successful ad should have both a lower cost per conversion and more conversions than other ads in the adgroup.

Keyword per conversion
Where? Google Adwords report. See here for more detail on how to generate it.
What? What keywords generated a conversion for each ad
What it tells you: Which ads are working for which keyword. You can also use this metric to make decisions about ads. A lower converting ad that converts strongly for an important keyword may be worth keeping.

Bounce rate
Where? Google Analytics, under Traffic Sources, Ad Versions
What? What percentage of visitors from each ad left your site without clicking on anything.
What it tells you: How relevant to your ad, attractive, and/or trustworthy your landing page is. How clear and compelling your call to action is.

Time on Site
Where: Google Analytics, under Traffic Sources, Ad Versions
What: Average length of time a visitor stayed on your site for each ad
What it tells you: How interesting/trustworthy/relevant visitors found your site; how much it met their expectations from the ad they clicked on.

ClickSweeper offers an ad evaluation feature that can simplify managing your ads. Check it out with a free trial of our award winning PPC management software.

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