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5 Key Performance Indicators to Measure PPC Campaigns

Key Performance Indicators (KPIs) are a great metric to use in order to measure how well a particular Pay Per Click (PPC) campaign is doing.  There are many different KPIs that can be used, and they are the only way to truly demonstrate performance.  This is necessary in order to show your employers and clients.  Here is a list of 5 KPIs you can use to measure your PPC campaigns.

#1- Clicks
Clicks are how every PPC ad begins, and this KPI will yield the number of people who actually clicked on your ad.  This is a great way to decipher whether or not your ad should be modified or boosted in order to perform better.  This KPI is usually performed in the middle of the month.
#2- CTR (Click Through Rate)
CTRs are calculated by taking the total number of impressions (or opportunities where the ad was viewed) and divided it by the number of people who actually clicked on the ad.  This will yield a CTR percentage.  So, if an ad was viewed 2,000 times and clicked on 200 times, the CTR would be 10%.  It is important not to compare your CTR to other industries, as they vary significantly.  CTR is a great way to create a benchmark percentage for your specific company that you can refer to in the future as you aim to improve it.
#3- Quality Score
Quality Score is the most difficult KPI to define. Quality Score is a number given by Google and is determined by a combination of things: CTR, ad relevance, landing page experience, and ad format.  A good score, between 7-10, equates to paying less money for AdWords.  A bad score, 6 and below, equates to paying more money.
#4- CPC (Cost Per Click)
Cost Per Click is a way to measure exactly how much an advertiser has paid for an ad.  You can do this by taking the total cost of a campaign and dividing it by the number of times it was clicked on.  You can then find out the total cost of a campaign by taking the CPC number and multiplying it by the number of clicks that ad received.
#5- CVR (Conversion Rate)
Conversion rate is a key indicator of overall campaign success.  The way this is measured is through AdWords. Take the total number of clicks and divide it by the total number of conversions to get the total CVR. If a campaign had 200 clicks and 20 conversions it would have a 10% CVR.