Advertising With Google Adwords

Essential Tips for Measuring ROI of PPC Campaigns

15/03/2010 17:46

How can you assess the effectiveness of Pay per click marketing tool that plays an important role in your internet marketing strategy? Figuring out the results of your Pay Per Click campaign is a simple procedure that requires only the basic understanding of how SEO and Pay Per Click works and the use of web analytics tools. Here are some tips that you can use to know how effective are the results of your Pay Per Click marketing strategy:

1. Integrate PPC with your web analytics tool. Avinash Kaushik, author of the book "Web Analytics: An Hour a Day" recommends using several web analytics tools and integrating your PPC data into it to measure the effectiveness of your campaign. Kaushik points out that it's important to have access to the backend of your analytics tools so you know exactly what is happening behind the scenes (instead of paying an SEM agency to do this for you as a service).

2. Identify your key performance indicators. Get the specifics on what element generated income for you. Was it the click to a sales page (a lead capture)? Was it the payment for a transaction? Itemizing what the performance indicator is in your Pay Per Click campaign will allow you to assess and track user behavior so that you can focus on what element actually makes you earn.

3. Get to know unique visitor history. The number of unique visitors varies per campaign and it is necessary to know how much you had spent to get them to visit your site, even if they did not buy anything or submit their information. If you know this, then you will find out which part of your Pay Per Click campaign is not working in your favor. When visitors come and go and income is generated, you may be using the wrong keywords.

4. Apply a split test. Online marketers have a technique known as a split test that can identify what are keywords or keyphrases that are bring them the maximum conversions in their respective target markets. A split test can be conducted by running the same advertisement using three different ad service providers at the same time. This will enable your to track clicks, see from where the most clicks are coming from, and pinpoint how your target market finds your website. This data is used to decide which ad service provider will be retained exclusively based on the highest yielding return.

5. Find out cost per acquisition. Determine the number of visitors and how of them spent or made you money so you can figure out the campaign expense per acquisition. The result is how much was spent to get one sale. This data is used as the basis for computation of your correct average selling price and your ROI.

Figuring out the efficiency of your Pay per click online tool may be time consuming and it is necessary to make some changes as you continue your campaign. But, it is a procedure that most internet savvy marketers do to be able to optimize their ads and achieve the highest conversions from individual Pay Per Click campaigns.


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