Any process involving the organization of activities must be measurable. In the world of PPC (Pay-Per-Click) advertising, there are key performance indicators (KPIs) used to assess effectiveness, which are crucial in business evaluations.
☝ KPI is a multifaceted quality assessment of a process that cannot be evaluated with a single result-based metric.
For example, how would you evaluate the performance of a management body with over 100 employees that is not producing tangible results at the moment? Only through indirect metrics like the number of decisions made, the number of decisions followed through, timeliness in arriving at work, and so on. The same applies to PPC advertising. Depending on the project, different KPIs are set. These can be established either for the entire account or specifically for individual advertising channels. Let’s break it down step by step.
We will list the KPIs assuming that our readers are already familiar with PPC advertising and understand the meaning of these terms.
Since this is an evaluation of a specific process, only qualitative indicators derived from specific ratios are used.
➊ KPIs for the overall account
- Cost per conversion;
- Conversion value;
- Traffic cost;
- % of ad spend relative to total revenue;
- Actual ROI.
➋ KPIs for individual advertising channels
Search advertising:
- CTR by campaigns, ad groups, ads;
- Cost per click (CPC);
- Quality score of keywords, ads;
- % of impressions in TOP 1 and TOP 4;
- % of impressions received;
- % of impressions lost.
Display advertising:
- Cost per click (CPC);
- CTR by ad groups and individual ads;
- Reach;
- Frequency.
Video campaigns:
- View-through rate (VTR);
- Cost per view (CPV);
- % of views by quartile;
- CTR from video search results.
Shopping campaigns:
- Cost per click (CPC);
- Conversion rate;
- Cost per conversion;
- % of impressions received.
Performance Max:
- Conversions;
- Cost per conversion;
- Conversion value.
These are the main metrics used by nearly everyone. However, there are many more indicators, including imported metrics from Google Analytics, and the ability to create custom KPIs for a broader understanding of a company’s marketing performance.
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