PPC Management
Pay Per Click search engine advertising is the most cost-effective form of online advertising, placed to the top and side of natural search results, with the advantage that customers only pay when people click through to their site. SEOptimise offer PPC management for Google AdWords, Yahoo! Search Marketing, Microsoft adCenter
Our PPC management process can help to improve traffic, reduce costs and improve conversion rates to ensure our clients are gaining the maximum return on investment.
Success measurements for PPC Campaign.
There are three measurements that truly matter:
• Profit
• Profit by Impressions
• Profit by Click
Profit is a metric for an entire campaign (more below).
Profit by click/impression should be the success metrics for split testing.
We take it consideration that one wants to decide what ads copy, landing page, keywords, etc are targeting the best value for your site. The entire conversion process start at the search query. Not the click. Not the page view. Not the sale. In order to understand the entire chain of search query to ad copy view to click to landing page to conversion one has to use two new metrics: Profit by Impression (PBI) & Profit by Click (PBC).
Consider the current success metrics:
CTR (click through rate) only measure how many people click on your ad. It does not measure conversion rate or profits.
Average CPC (cost per click) only measures what you pay for a click, again, there is no conversion data associated with this metric.
Conversion rate is a percentage of how many people converted compared to saw your landing page. It does not include CTR, CPC (cost per click), ad spend or even profit margin.
Cost per conversion tells you how much it cost you to have a visitor perform a specific action. It does not include how many people converted, the conversion percentage, or even the ad’s click through rate.
ROI (Return on Investment)-These are percentage metrics of profit compared to costs. They do not incorporate click through rate, conversion percentage, or ad views.
Profit should be a metric that looks at a campaign holistically. If you want to look at individual parts of a campaign, you should also look at individual parts of the profit.
Each of the above metrics is just that, a metric. One piece of information in a sea of statistics.
Let’s consider the entire PPC process.
The search process starts when a consumer has a question to be answered. This could be anything from where do I buy shoes to exploring vacation options. At this point, the searcher forms an idea of what to look for. This idea is translated into keywords, or a search query. After inputting a query into a search engine, the searcher is presented with a set of search results (which include ads). At this moment, your ability to make a conversion has already started.
When your ad is triggered, it’s considered an impression. At the moment your ad has a statistical impression, it also has the ability to connect with the searcher.
The searcher will then make a decision: to click your ad, to click another option on the page, or just search again if they don’t see something that appears to answer the question they are asking.
This is the first metric that needs to be taken into account: impressions (when your ad is presented to a searcher).
If your ad makes a connection with the searcher, then he will click your ad. The act of clicking on an add then triggers two metrics that must be taken into account:
• CTR: The number of clicks divided by impressions
• CPC: Your CPC (cost per click)
When CTR & CPC are taken as a whole between all visitors, you can determine:
• Total ad cost
• Average CTR
• Average CPC.
A visitor then arrives on your landing page (the page on your website that you’ve designated to be connected with particular ad), this triggers yet another statistic: page view.
When a searcher inputs a search query, she has certain expectations of information. If your ad meets that expectation, the user will click your ad resulting in a page view. At this point in time, your landing page must meet the searchers expectations. If your page does not meet expectations, she will not follow the action you wish her to take.
If your page meets his expectation and has the proper landing page elements to convince him to follow your action, he will be considered a conversion (A conversion is a predetermined action that measures the success of your advertising campaign. It could be a sale, a download, a contact, etc).
When someone converts on you landing page, this sets off another slew of metrics:
• Conversion rate (page views divided by conversions)
• Cost per conversion (number of conversions divided by ad spend)
• ROI/ROAS (sales amount divided by ad spend - if you’re not an ecommerce site, you need to determine the value of a contact, download, etc in calculating these statistics). |
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