Today, I am writing this post to all Adwords / PPC beginners & aspirants, here i would discuss the basic PPC metrics and terminology used to evaluate the performance of ppc campaigns. These are discussed as,
Clickthrough Rate (CTR) : Ratio of number of clicks on ads to the impression received
*Impressions - No of times ad appears on SERP & google content network.
Cost Per Click (CPC) : Amount an advertiser pays to publishers (search engines) for a single click on its advertisement.
Average CTR : Ratio of total clicks on Ads by total impression received over a span of time.
Average CPC : Total clicks divided by Total Amount paid over a period of time.
Conversion Rate : Ratio of pageviews divided by conversions (sale, purchase, download, enquiry).
Cost per conversion : Money spend on the campaign divided by the conversions produced out of it.
ROI/ROAS (Return of Investment/Ad Spend) : Revenue generated out of PPC campaign efforts divided by Money spend to run these campaigns.
For Non - Commerce sites value of measurable action (registration, download, enquiry, subscription etc) is to be determine to evaluate the ROI.
//Conversion is a measurable action (sale, purchase, download, enquiry etc) that defines success of your ppc campaigns.//
One of famous saying for perfect PPC campaign cycle, that i would like to share with you is,
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Conversions are about building relationships.
Building relationships is about building trust.
The relationship begins with the first impression,
and continues to the landing page,
and through the sales process,
until the sale is made.
The relationship then shifts to retention, support and up-selling,
where the trust built during the initial process really counts.
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Give your feedback, thats for today,
Thanks
Omenao
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