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The Pros, Cons, and the Underrated KPIs of PPC

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With the ongoing race of getting ranked on the top page of Google, paid ads have proved to be one of the short cuts to be on top. Every business in this race has some common goals like increased revenue, higher transaction rates, reduced CPC, etc. To get the best output with a paid advertisement we need to thoroughly understand the KPIs of PPC that influence its results. Recently, Digital marketing agency Malaysia measures these KPIs and work on them to drive their marketing campaigns for different businesses. These KPIs if understood well can do wonders for your business.

We have done your bit of researching and brought to you the important factors influencing the PPC campaigns.

The PROS

Revenue or Returns

Good revenues and returns make everybody happy. No matter you are spending more or less money on ad campaigns higher revenues have always been the prime focus for every business. High revenue not just brings profit but also helps you analyze the latest trends.

revenue or returns

Supposedly if any of the ad campaigns were doing well previously and suddenly sees a drop in performance, this does signal high competition in the market. This kind of flips indicates to check on the auction insights to see the opposition challenges in the market and its impact on ROIs. This will also let you understand the changing market needs and deeds.

Click-Through Rate

Click-Through-Rate (CTR) is the determining factor of your chosen keywords and ad campaigns. This metric does have some obvious powers that can determine how suitable is your ad campaign with respect to the keywords. This also lets you analyze the public interest, behavior, and psychology to plan up your marketing strategies.

CTR metric

Digital Marketing Malaysia primarily focuses on audiences to frame their marketing strategies. It is important to understand your customers’ minds well to trigger their instincts with the ad contents. This is an important index to determine the relevancy of your ad campaigns with your target audiences thereby reducing your cost-per-clicks.

Revisit your strategies to check whether any of your headlines or any specific keyword or any other action have triggered more audiences. Or on the contrary, any of your actions led to a reduction in audience engagement. All these will help you redesign your online strategies and actions aligned to your audience’s perspective.

Impression Share

This report helps you get the impression share which is the number of impressions on your marketing campaign divided by the estimated number of impressions. This helps you to determine how well your ad campaigns are performing and also give you proper insights on the actions and budget estimations.

Impression share

Once you get the insights of your actions on online marketing campaigns, you may redesign your strategies as per the market demand and budget margins.

The Cons

Quality Scores

This would be not fair to tag ‘quality scores’ as a con for PPC, but this is surely some tricky analysis metric. To explain to you better let’s consider this example if the chosen keyword, has a low score say 3 out of 10 but the impressions are greater say 50 what would you say about the performance?

Quality score

In some cases, the low-quality score keywords have a higher conversion rate and drive higher traffic. It won’t be completely right to determine keyword strength based on quality scores, there are other factors along with a keyword that influences conversion rates and traffics.

Clicks

Higher click rates are good to have but if it doesn’t always turn around to fulfill the desired goals, it is of no use. Click without context doesn’t work at all. In PPC, you are charged only when some user clicks on your ad, but if that user is not converted into a customer, the money you will be charged for the click is completely wasted.

effective clicks

Understanding the right context will make your job easy like the data we see what does it reflects, is the conversion rate lower than the click rates, the relevancy of search results, and user behavior. If your website has more visitors make sure they spent time on it exploring and knowing your site, those clicks will then be counted.

Even though higher click rates look great but its aftermath decides your ad performance.

Interactions

If your clicks are transforming into customer engagement that you call it an interaction. As for Google, interaction is the major user action associated with ad links. Never get trapped with the interaction face value, only when it has counteraction or reciprocation from the user end it adds value to your campaign.

customer interaction

Make sure your metric interaction report is referring to the accountable counts.

The Underrated

SEO/PPC Combined Reports

In search ad 360, you get the combined reporting of PPC and SEO that makes the report analysis way easier and authentic. Check on the search results that make your content appear on the top pages of Google be it paid or organic. This would let you know your strongest content that drives major audience engagements. For the same content, you may also compare the paid versus organic results. 

Impressions

An impression is not just about search volumes or how often it is spotted by your target audiences. It has much more to it in terms of analyzing performance trends. It helps you validate the account optimization with higher quality scores and an increased impression. It can also sometimes have fluctuation in search results with progress in impression rates. It gives you a wider perspective to analyze your strategies well.

If you analyze the impression reports correctly you would find detailed insight into your ad performance that can make you modify, withdraw, or adapt required strategies.

Conversion and Attribute Modelling

The only way to get accurate conversion results, you would have to properly place the attribution modeling for your Google Ads account. Conversion might not be similar to other metrics that come in number values, it is more about understanding how successful your marketing campaigns are.

In general, it is the ‘last click’ that attributes all the conversions to the final touchpoint of the funnel. There are other models like ‘linear’, ‘the first click’, check on the different models to understand the performance metrics better from all aspects. 

It is all about setting rules to determine how credit for sales and conversions is attributed to touchpoints in conversion routes.

Wrapping Up

Be it Facebook Marketing Malaysia or the whole of digital marketing in Malaysia, the marketers analyze this metric reports not just based on face value but on all the hidden aspects to derive productive strategies. Once you understand the real viewpoints of the PPC KPIs you are all set to frame the most effective digital marketing strategies for your business.

It is not about the values you see in metrics it’s about knowing the correct elements that drive sales and make you gain more revenues.

Read more on SEO vs SMM: SMEs Guide to Digital Marketing for 2020-21.

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