Advertisers don’t know if their ads are profitable until checking the key metrics of their campaigns. It is difficult to evaluate all the parts of an advertising campaign without the right data. However, if you measure your results, you always know how your ads perform and what to improve. For this reason, this post will show seven tips to measure your ad performance.
- Set Clear Goals
When you create an advertising campaign, you need to have a clear goal. It is important to know why you need these ads and what you try to achieve. You may want to get more leads or more visibility for brand awareness. If you have clear goals, it is easier to understand if your strategy works or not.
You can also need to know what you can get from your current budget. Will you use this budget to get as many conversions as possible or just want to generate more traffic for your business? If you can’t focus on one-two things, there is no way to reach any specific goal.
Lastly, your goals keep you accountable. You can set goals about your ad performance and improve specific metrics or goals about the leads and customers you expect. In every case, you always know how close you are to your goals if you keep track of your campaigns.
- Find What Part Of Your Traffic Is From Paid Ads
Most digital marketers and companies have more than one traffic source. They get traffic from PPC, SEO, social media, direct traffic, and different websites across the internet. If you get a number of leads from your website, it’s important to know how they have found your site.
Google Analytics is a simple and effective tracking tool by Google that gives you the exact traffic of each source. Your ppc advertising accounts also show you the number of clicks that you get from your ads. So, it is quite easy to know the traffic you get from every source.
Then, you need to evaluate if you need more traffic from your advertising campaigns if we assume that you can afford it. When the results are not enough, you need to work on them to improve clicks and conversions.
Track These Metrics:
- Check Your Quality Score
The Quality Score helps Google Ads rank your ads in each keyword, and it is a clear indication of your ad performance. When the users have a good experience with your ads and your landing page, the Quality Score will be high. When the ads are irrelevant or the landing page is not helpful, the Quality Score will drop.
According to Google, they estimate the Quality Score from three elements:
- Landing page experience
- Ad relevance
- Expected click-through rate
When you have a low-Quality Score, it is not clear which of these elements you need to check. In some cases, you may need to improve all of them. However, these are the three most important parts of your ad.
Usually, you need to evaluate your keywords’ relevance with the topic of your ads. If there is a flow of relevancy, you can expect to get clicks and conversions. When the relevance is ok, you much check the landing page or copy of your ads.
- Click-Through Rate (CTR)
It is the percentage of people that click on your ads when they are on the search page. This metric is a strong indicator of your ad performance and affects the Quality Score.
The CTR depends on your ad’s relevance with the targetted keywords and the copy of your ad. You can find relevant keywords with the keyword tool of Google. Then, check their performance and remove the ones with low CTR.
When you create the headline and the description for your ad, you must keep it interesting. When you include numbers, power words, emotional words, and keywords, the ads tend to have higher CTRs.
- Conversion Rate
This metric is a percentage that shows how many conversions you get on the landing page. A conversion is the goal of your ads. You can count as conversion, new subscribers, free trials, downloads, or sales.
The landing page will determine the conversion rate if we assume that you target the right audience with your ads. The quality of the content will keep the visitors to your site, and the call-to-action will motivate them to complete the conversion.
You can test different versions of your landing page until getting the results you want. It’s easy to change your calls-to-action, add relevant images, add testimonials, or remove ineffective elements from your landing page.
- Cost Per Click (CPC)
The cost per click determines how much money you pay for each click. You have the option to set a PPC manually or choose the smart bidding options of Google.
It makes sense that a low CPC gives you cheaper traffic. However, when you set the CPC too low, your rankings will drop so that you will lose traffic. One of the smart bidding options is to maximize your clicks. In this option, Google will figure out the best CPC to get as much traffic as possible in a specific budget.
- Cost Per Acquisition (CPA)
It is important to know how much money it costs to get an acquisition. It is another word to describe your conversions. An acquisition can be a lead, a purchase, or another action that a visitor can take on your site.
You must be aware of the value of a lead or a sale before deciding when the CPA is profitable. You can set a maximum CPA on Google Ads. Then, it will optimize your ads to get at least an acquisition before exceeding that amount.
You can measure your ad performance if you have clear goals and the right metrics. These tips above are enough to show you when your ads work or not. If the CPC or the CPA is too high or the ads don’t get enough clicks, you probably need to find what part of your advertising campaign needs changes.