Planning Paid Ad Campaigns? 5 Metrics that Really Matter for Success

4 Sep, 2019Business

If your keywords are ranking organically and need a subtle push towards the top 10 results, then how about giving paid advertisement a try?
No doubt, it takes a lot of research at your end to set up a campaign that attracts the right audience. But if done right, then your brand is sure to receive the recognition and establish a presence that helps it grow even more.
All this is possible with the use of paid advertisements. You just need to make sure that:

  • You research about your target audience
  • Understand what ideas entice them into clicking an online ad
  • Start a keyword research
  • You always compare the volume of the keywords
  • You set a budget that needs to be dedicated towards the various campaigns
  • Once you complete the keyword research you divide them into relevant categories
  • You add negative keywords to avoid unwanted leads for your business that may ultimately increase your website bounce rate
  • You create ads that are short, crisp, and relay your point to those who read them immediately

These are just a few things that you should have in your small beginner checklist or when hiring a professional provider of Pay-Per-Click (PPC) services in Australia. While these activities look pretty simple to implement, each stage can be very time taking.

And so, is the stage where you need to measure how successful your paid advertisement strategy turned out to be for your business.

To measure the success of your paid advertising campaign, you need to keep track of a lot of metrics. However, many providers of SEO services in Australia suggest business owners to keep a track of 5 metrics only.

So, let’s check out what all metrics you need to monitor to measure the success of your paid advertising.

Top 5 Metrics to Help You Measure the Success of Your Paid Campaigns


#1: Cost-Per-Click (CPC)

CPC is said to be the actual price you pay for every click you get in your PPC campaigns. So, in case you get clicks on text ads or display banner ads you create, then it means your website has received the same number of visits too.

In a nutshell, every click you get indicates that you had visitors who engaged with your website as they found something that matched their search results.

To calculate CPC, you need to implement the following formula:



Know this, your CPC will always be equal or less than your maximum bid. That’s because it is an average of bids against many competitors in a period of time. Plus, Google Adwords auction works in a different way. If anything, your actual CPC is gets influenced by the ad rank of both you and your competitor. 


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Besides ad rank, things like maximum bid and quality score too influence the CPC.


#2: Click-Through-Rate (CTR)


CTR is another metric that is really essential for you to measure the success of your paid campaign.

CTR is basically the rate at which your PPC campaign ads get clicked. This metric is a great way for you to know how many people in percentage have viewed your ad in the SERPs and then actually click on it.

Note: The reason why this metric is essential for you to calculate is because it directly affects your quality score.

This is how you calculate CTR for your paid campaigns:

(Total Clicks on Ad) / (Total Impressions) = Click Through Rate

Also, you need to see if your ad’s CTR isn’t too high. You may say that our brand’s getting the opportunity to reach its target audience. But high CTR actually becomes bad when a certain keyword target isn’t apt for your business or you aren’t able to get more leads, sales or even branding gains.


#3: Cost Per Conversion (CPC or CPCon)


Also known as Cost Per Action (CPA), CPCon is a metric that helps you know how much your business needs to pay for it to attain conversions. Now, the CPA is said to be more than your cost-per-click. That’s because not everyone who ends up clicking on your ad will end up completing your desired action.

In a nutshell, CPA takes into account the total number of ad clicks you would need before one person converts into a customer.

You can calculate your CPA metric with the following formula:

Cost Per Conversion= Total Cost of Generating Traffic/Total Number of Conversions


#4: Quality Score


Quality score is a very crucial aspect of the ad auction process. It is said to be Google’s way of rating the quality of the keywords used in the ad and the ad on the whole. Quality score helps you to determine the CPC that is multiplied with your maximum bid, which helps to understand the ad rank during the ad auction process.

To measure the quality score of your campaign, there are a lot of factors you need to take into account, like:

  • Your CTR
  • Relevance of keywords under every ad group
  • Landing page’s relevance to the product and its quality
  • Relevance of the text ad
  • How well did your historical Google Ads account has performed


#5: Conversion Rate


This metric actually decides whether your campaign was a true success or not.

It is the percentage of visitors on your website that successfully complete the desired action after clicking on the ad out of the total number of visits on the website. So, if you’ve been noticing high conversion rate lately, then it is an indication that whatever design or marketing practices you’ve implemented have been a success.

Start Calculating These Metrics to Measure Your Campaign’s Success

Running a paid campaign takes a lot of effort, money, and time. In case you haven’t worked on a paid campaign before, then hire a professional SEO service provider who can build and implement smart ad strategies easily.

But no matter who runs the ad campaign, what matters is that your campaign should turn out to be a success for your business. And to determine its success, you’ll have to make sure that you use these 5 metrics.

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