Showing posts with label click through. Show all posts
Showing posts with label click through. Show all posts

Friday, April 27, 2012

How to Measure PPC (Pay Per Click) Performance?


 The main advantage of Online Marketing over Offline or Traditional is the 'measurability' of investment and the Return on Investment (ROI). SEO (organic search) and SEM (Paid Search) are two vital pillars of Internet Marketing. Its been a constant debate which of these two is better - SEO or SEM? There is no direct answers as SEM is pinpoint advertising based on interest while SEO is all about Broad guidelines for a constantly improving performance. Whether the quality of SEO is better than SEM, depends on your SEO or SEM (also known as PPC, although not limited to) consultant.    
                                             
All of us know that, for a successful PPC (pay per click) campaign one should get a high return on investment.
A PPC campaign is quite costly and it does burn a pretty little hole in your pocket the first time. So, it's essential that you get it right in one go. The reason we spend big bucks on this campaign is that PPC is one of the most useful online marketing strategies available. There are several ways in which the PPC performance can be gauged. These are listed here. First up, the CTR (click through rate). It is based on the ratio between number of impressions and ads clicked. This gives an idea of how many are actually clicking the ads. 


Next up, CPV (cost per conversion). It tells us the average cost per conversion of each ad, and we can decide on our own which ad was successful and which was not. The 'bounce rate' and 'time on site' features tell us whether the ads are relevant to our website landing page and how interesting the site was, respectively. One of the best indicators, though, is the actual loss incurred in the PPC budget. The more the loss, the worse the
campaign. Our main aim with the campaign should be to incur no loss at all.