PPC Tuesday – 6 Metrics That Drive Performance



Last week on PPC Tuesday, my colleague Kevin introduced Google Instant from a PPC perspective. If you missed it, be sure to go check it out, I am sure more will come on this topic as we collect data.

Last month our founder & president Scott Smigler wrote an article discussing metrics beyond ROAS.

It appeared on the popular merchant resource: Practical eCommerce

I am going to share these metrics with you, as well as introduce some new insight – in case you have already read it.
If you haven’t read it, or are unfamiliar with the site, I strongly suggest you visit it. Every day it is filled with smart, insightful commentary for online merchants.

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Here you can find the link for the article, or just search the site for PPC Metrics, it was published on August 30th.

There is additional information in the article that is not covered in this video including target numbers to shoot for.

Also, as I mentioned, additional material in this video that’s not in the article!

We want to look beyond ROAS, which has been extensively covered here, and is the cornerstone of our Profitable PPC product. You already know that we measure revenue when possible, and compare the costs invested in PPC with the return they gain to make smarter business decisions that are inline with retailers other efforts.

For the purpose of this video, I have split the 6 metrics we did review into two categories: Competitive Metrics & Performance Metrics, measuring your efforts before the click, and after.

The first three metrics can be seen as measuring your ads competiveness against your competition.

The first one is your Click through Rate. It measures how many people click on your ad based upon how many times it was shown. This will tell you if your message is resonating with your target audience, and can also help recognize how your copy stacks up against your competition. If they are offering specific prices, or discounts, and you have a generic ad, that probably won’t fare as well and your CTR will be lower.

The next metric is your Average Position. This tells you where your bids are positioning your ad, letting you know how competitive the market is and where you need to be to drive the performance. Here is a hint – it’s not always the top spot. By monitoring your positioning you can find where the best value lies, bringing you qualified traffic that is at the right value for your business.

The next metric, your quality score impacts both of the previous metrics. It is based upon performance history or Click Through Rate (as well as landing page factors) and helps determine your positioning (along with your bids). Your Quality Score is assigned by Google and measures how effective your advertising is by measuring the relevancy to the search query that triggered your ad. This allows those with small, relevant advertising efforts, compete effectively against larger, big budget advertisers that may be more diverse, or overreaching with their PPC strategy.

The next set of metrics looks at how your ad is performing in relation to your market and site.

The first one here is the Impression Share. This a metric unique to Google, and lets you know how many times your ads appear in relation to the total number of searches available. It measures two factors that control how often your ad appears: your budget, and your average position. If you find a viable market to target we have seen performance exponentially increase when ads are appearing for the all searches. For example, if you have a 75% impression share, you may be capturing only 50% of potential sales because you cannot control when the searcher will be ready to buy – if your budget is only allowing your ad to be seen earlier in the day, then you may appear for searches while they are researching, gathering information, but not there when they are ready to make the sale.

The next metric is the Bounce Rate and this directly measures how your ad’s qualify the traffic for your landing page. If you are not setting proper expectations, you will see a higher bounce rate. Remember, winning the click on the search engine is only the first battle, you still have to drive that click to a successful sale, and by designing a relevant, direct landing page that enables and encourages the conversion you will go along ways to seeing your PPC investment pay off.

This brings us to the 6th metric, and that is conversion rate. This is the one number that tells you how effective your advertising is at reaching qualified traffic, and how well you are carrying the searchers along your conversion path. It takes into account the efforts you partake on the search engine, including the competiveness, as well as how your site is positioned to close the deal. Adjustments made to improve other metrics should positively impact your conversion rate. If you do not have a sustained conversion rate, you cannot begin to measure your ROAS, or other business metrics.

The last piece I wanted to cover, Time, is not technically a metric, but a dimension. None of the other metrics can be looked at in a void, and as you factor in time, trends emerge. Following these trends and making adjustments to positively effect them will go a long ways towards building a long-term PPC effort that will strengthen your business. If you base all of your decisions based upon yesterday’s performance, you will find your self going in circles more then moving forward. Always try to look at behaviors over 30 days when possible. When you launch new efforts, monitor the day/day activity as the trends emerge.
I hope this video has been helpful!

To Learn More about Exclusive Concepts Profitable PPC product, or any of our excellent services in our suite of online marketing offerings including our Conversion Booster, SEO Foundation or Precision Email Marketing, please don’t hesitate to contact us. We have also launched our new Software As A Service destination, Conversions On Demand.com. Visit it today and see what we have to help your business.

Also, if you have specific questions about how your PPC Account is structured, sign up for one of our Profitable PPC Audits, they are quick and offer some great insight in how to optimize your campaign along with relevant recommendations.

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Do you have any lingering questions after watching this video…do you have a topic that you would like to learn more about? Then send an email to blog@ exclusive concepts.com.

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Thank you, this has been Chris for Exclusive Concepts Daily Concept: PPC Tuesday. I look forward to talking to you next time.