When it comes to paid search advertising campaigns, measuring results is key to continued success. Calculating the return on investment for what you’ve spent on the campaign is important, but there are other stats and metrics that are key to your campaign’s overall success, as well as indicating areas that need improvement.

As a digital marketing agency with experience in Google advertising in Atlanta, here are three key stats we evaluate when measuring the results of paid search advertising campaigns.

Cost Per Lead

The cost per lead is an indication of the cost-effectiveness of your paid search marketing campaign and lets you know how much you should be spending to acquire new leads. The cost per lead (or CPL) is determined by dividing the cost of generating leads by the total number of leads acquired.

For example, if you spend $1,000 on your paid search advertising campaign and generated 10 leads as a result, the CPL is $100. That might be fine for some industries, but if the $100 lead generates $20 in revenue, you’re spending more on your paid advertising than you’re getting out of it, so it’s time to adjust your campaigns.

Click-Through Rates

Click-through rate (CTR) is one of the best indicators of a campaign’s health and how your ads are performing because it measures the number of people who view and then actually click on your ads. You may think you’ve written the best advertisement for your service or product, but if it doesn’t resonate with your potential customers, the CTR will suffer.

If your CTRs are low, it could indicate that your ads aren’t relevant to what the users are searching for. Having a high CTR will lower your cost per click and raise the ad’s quality score. However, CTR only tells half of the story — a high CTR paired with a low conversion rate means there is an issue on the landing page that is driving users away from your site.

Quality Score

Measured on a scale from 1-10, the quality score is a strong indicator of keyword relevance within your ad groups. While it’s not realistic to have every keyword reach the highest 10/10 score, investigating low-scoring keywords will indicate if your advertisements or landing pages need adjustments. Maintaining good quality scores affects how Google determines your ad rankings and how much you pay per ad click. The higher your ad ranking, the less you pay in cost per click.

Blueprint is proud to be recognized as a Google Premier Partner, a distinction awarded to top-performing partner agencies who deliver great results for their clients. If you want to start paid search advertising, or get better results from current campaigns, contact Blueprint today to see how our team of PPC experts can produce measurable, successful results for your business with paid search advertising.

By: Blueprint