Two of the most important and widely used KPIs are cost-per-acquisition (CPA) and return on investment (ROI).

When it comes to online advertising it should never be is a case of throwing everything together and hoping for the best.

But before you spend any money at all on your pay per click (PPC) campaign, you need to make sure you have proper tracking in place to measure its effectiveness.

Fortunately, as opposed to some of the more traditional marketing streams, paid search and PPC advertising offer a wealth of potential key performance indicators (KPIs).

Here are some of the key options you can consider:

Impressions – This is a measurement of how many times your ads were presented and, theoretically, seen by viewers.

Clicks – This is a raw number measurement. It is the total number of times an ad(s) was clicked. Taken out of context and separated from other elements, it doesn’t tell much. But it is useful for tracking trends over time.

Click through rate (CTR) – The formula is total clicks divided by the number of ad impressions. An ad’s CTR is a strong indicator of its relevance to the user and overall success. A low CTR indicates that ads are not being clicked.

Conversion rate – A conversion is a customer action that has value to a business. It could be an online purchase, an application download, filling out a form, downloading a whitepaper – whatever the company deems important.

Two of the most important and widely used KPIs are cost-per-acquisition (CPA) and return on investment (ROI).

These are both powerful pieces of information that show how much you’re spending on a campaign versus how much you’re getting back in return.

CPA shows how many marketing dollars are spent to achieve a conversion and for small businesses, the lower the CPA, the better.

ROI shows profitability, seen as a percentage in revenue growth over overall costs – pretty straightforward, the higher the ROI ratio, the better.

But at the end of the day, no matter what metric you choose to measure, you need to make sure you can monitor your campaign effectively and make changes if necessary. 

This is why it's important to partner with a reputable search supplier. The Sensis team of search engine marketing experts can help you reach local customers who are searching for your services whether browsing at home or on the go.  

We can also show you how to improve your website features such as landing pages and call tracking so that potential customers can find you easily. It's our job to manage your online presence so you can focus on turning those all-important leads into sales. 

Alex Watts is a Digital Specialist – Display & Search at Sensis

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