Google’s pay-per-click marketing platform AdWords consistently ranks as one of the most popular digital marketing channels for small businesses. Of course, there’s a good reason for its popularity: AdWords allows businesses to advertise their products or services while paying only when someone clicks their ad. If you plan on using it to promote your business, however, you should track the following metrics to increase your chances of success.
#1) Click-Through Rate
Click-through rate (CTR), as the name suggests, is the percentage of users who click your AdWords ad. It’s calculated by dividing the total number of impressions for an ad by the number of clicks that ad receives. If an ad receives 1,000 impressions and 200 clicks, for instance, it has a 20% CTR.
With that said, you should also track the total number of impressions your ad generates. If your ad only generates a handful of impressions, it’s probably not going to offer any value to your business. An effective AdWords campaign requires lots of ad impressions; otherwise, there’s no one to see your ads, let alone engage with your business.
#3) Average Cost Per Click
Another critical AdWords metric that you need to track is average cost per click (CPC). This metric is pretty self-explanatory. Average CPC is the average cost for clicks to your ad. Click costs vary depending on bid price, keyword competition and Quality Score (see below). However, you can view the average CPC of your keywords/ads within your AdWords dashboard. So, what’s a normal CPC? Well, it varies depending on the factors previously mentioned. For some general estimates, though, you can use Google’s AdWords Keyword Planner Tool.
#4) Quality Score
Don’t forget to check the Quality Score of your keywords when promoting your business on Google AdWords. Every keyword is given a Quality Score ranging from one to 10. This metric reflects the keyword’s relevancy, expected CTR, historic CTR, ad relevance and landing page relevance. The higher your Quality Score, the higher your ads will rank and the less you’ll pay for clicks.
#5) Cost Per Conversion
Perhaps the most important AdWords metric to track is cost per conversion, which is the average amount it costs, in PPC click costs, to acquire a single lead. Of course, the longer your cost per conversion, the better. If you pay too much for conversions, you’ll end up spending more money than what you make.
By tracking these five metrics, you’ll have an easier time creating a successful AdWords marketing campaign for your business.