Measure Ppc Advertising

December 13, 2009 by Roy Sencio
Filed under: PPC 

The potency of any program, arrange or campaign is understood by the results it achieves. The results of a PPC advertising campaign would be to extend the sales of the merchandise/services it advertises. It’s said in Quality Management, “If it can’t be measured, it will’t be achieved”. Thus the advertiser would need to measure the results to understand the success of his program and so to take actions based on that.

The goals of an advert can be increased number of shoppers, higher dollar worth of sales, requests to subscription of a service or just sharing personal data. The advertiser should be clear concerning the goals he/she sets out to achieve. Properly articulated goals, followed by well-crafted advertising campaign and periodic measurement of the result would complete the loop of an advertising campaign.

The metrics for measurement are Return-on-Investment (ROI) at the business level, price per acquisition (CPA) and click-thru-rate (CTR). ROI measures the returns on the advertising budget; CPA measures the price of changing a viewer/user to a customer; and CTR measures the number of guests to the website. With increasing bidding costs for keywords, along with the heightened competition to stay at the same ranking, the numbers derived from these metrics become significant for the advertiser to require action upon modifying the campaign, etc.

There are software tools accessible to track the quantity of guests clicking through. ROI and CPA can be measured from the actual sales figures and also the advertising bucks spent. A word of caution to the advertisers: it might be myopic to appear just at the numbers and miss the whole picture. For example, a high click-via-rate might be thanks to numerous reasons like fraud, etc and hence CTR must be correlated to alternative metrics like CPA and ROI so as to urge the 000 meaning.

With a median on-line conversion rate of around two%, an online advertiser has got to tightly utilize budget by continuously taking action on the measurements while not that, the advertisement would be realized the portal where it’s hosted, ensuing in the loss of business.

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