10 Key Metrics to Measure PPC Campaign Success

Why is tracking PPC campaigns critical?

PPC is data-rich paid advertising. It gives marketers insightful data such as clicks and keyword performance, which can be used to better understand buyer behavior, customize ads and improve performance in real time.

Regularly monitoring PPC campaigns ensures they deliver the best performance and help achieve marketing goals as intended.

Why should you measure quality score?

A low score indicates that you may need to make changes to your ads, keywords, or landing page; else, your campaign could be wasting significant ad spend. 

What do we recommend?

At Gartner Digital Markets, we recommend having a complete and healthy profile customized to the products. To do that, collect relevant and recent user reviews, ensure your ad message and landing page are appealing and clear for your target audience, and use a mix of keywords (high volume-low competition, broad match, long-tail, geotargeted, etc). 

Why should you measure impressions?

Impressions can tell if your ad is reaching your audience and increasing brand awareness. High impressions but low clicks show that viewers aren’t finding your ad relevant or resonating enough to click.

What do we recommend?

Increase impressions by including broad match keywords or widening your audience by expanding the regions or industries you target.

Why should you measure CTR?

A good CTR is a strong indicator that your ad is being well received, its messaging is clear and users find the calls to action (CTAs) relevant. A high CTR also directly contributes to your quality score. 

While CTR is a great traffic metric, it may not necessarily mean the conversion of a lead into a prospect or customer, as it doesn’t track what happens to users after they click on the ad.

What do we recommend?

If your impressions are high but CTR is low, improve your ad by A/B testing the ad copy and design elements. Additionally, you can personalize messaging for target demographics by segmenting by industry, firm size and region. 

Why should you measure average position?

Ranking your ad or listing higher has a direct impact on campaign performance. It catches viewers’ attention more quickly and attracts more clicks.

What do we recommend?

Average position of first or second on SERP is considered optimal. A good way to rank higher on SERP is to bid higher; however, make sure you keep costs within budget.

Why should you measure impression share?

Impression share is a good way to understand whether audiences are seeing your ads. If your goal is to get more exposure for your brand, this is a highly relevant metric. 

What do we recommend?

Improve impression share by adjusting keywords to match the search intent, increasing the bid amount or budget and monitoring the keywords your competitors are using.

Why should you measure conversion rate?

Conversion rate is the most effective metric that reflects PPC campaign performance across marketing channels. It measures if your PPC ads are compelling enough for viewers to complete the action you want (such as clicking on an ad or installing an app). A good conversion rate means your ads are generating leads from your target audience.

What do we recommend?

A high conversion rate depends on many factors, including the interest level of visitors and attractiveness of your offers. Include clear CTAs in your messaging, improve your landing page and adjust your bids to optimize the conversion rate.

Three common ways to track sources and conversions:

•  UTM tags. Add these snippets of code at the end of URLs to track information about your visitors, including the source, medium and campaign that brought them to your site.
• Pixel tags. Add pixel images to webpages to gather data on how users navigate your content and track user activity on ad campaigns.
• Automated conversion tracking. Enable the automated conversion tracking option offered by most paid advertising channels to automatically adjust your bids, get optimization suggestions and target users better. 

Why should you measure CPC?

CPC is a performance metric that demonstrates the overall value of your PPC campaign. It tells if you are paying too much for leads compared to the revenue you are generating in return. A high CPC could indicate wasted ad spend, as not enough visitors who are clicking through are converting into leads.

What do we recommend?

To lower your CPC, improve your quality score, try using a different marketing channel, adjust your bids or pause lower-value ads (i.e., ads that aren’t garnering as much audience interest as you would like).

Why should you measure CPA?

CPA is one of the most important metrics for marketers, as it helps measure overall ROI for ad campaigns across digital channels. It creates a direct link between business revenue and advertising efforts.

What do we recommend?

Track month-over-month change in CPA. If CPA changes by 5% or more, you should take action to lower total costs or increase conversions, according to Gartner (full content available to Gartner clients). Start by adjusting your bids or targeting different keywords.

Why should you measure ROAS?

ROAS is a measure of PPC campaign performance in monetary terms. The higher the ROAS, the better your PPC campaign is at generating top-line revenue for your business.

What do we recommend?

To improve ROAS, segment your campaigns to deliver relevant messaging in paid campaigns and target higher-value accounts.