What defines success in your PPC campaign?
For some, it’s the quantity of qualified traffic driven to a website (clicks).
For some, it’s the number of eyeballs that had seen the ads (impressions).
For some, it’s the click through rate (CTR).
Depending on the objective of the campaign and/or requirement of the advertiser, the set of success metrics can differ from one advertiser to another.
The bottom line of most (if not all) for-profit organizations is the amount of revenue that’s eventually generated.
In PPC terms, no metric can be more closely tied with revenue generation than the number of actual conversions.
A conversion can be:
– Purchase/Sales (of a product/service),
– A view of a webpage – such as a “contact us” page,
– Signing up of a newsletter
– Downloading of a PDF or
– Lead generation – submission of a form enquiry etc
For every action listed above, a conversion value (also known as “goal value” in Google Analytics) can be attached to it.
A misconception in the application of a value to conversion is the ideal of associating an actual, realistic value to the conversion.
Virtual values, more often than not, had proven to be suffice in most scenarios.
Usually a bigger value would be assigned to the actual sale/purchase, a lesser value to the generated leads and the least value to say, the viewing of the “contact us” page for example. In summary, the more significant action should be given a larger value and a less significant action to be given a lesser one.
In Google AdWords – Go to “Tools and Analysis” main tab > Select “Conversions” from the drop down menu > Select the “Conversion”> Go to “Settings” tab > “Edit Settings”
In Google Analytics – In your profile, go to “Admin” > Under the default “Profile” tab, proceed to the “Goals” sub tab > Go to any of the “Goals” that had already been set up > “Goal Value” can be located under “Goal Details”.
How do you differentiate between 5 keywords that had 10 conversions each?
Various metrics can be employed to differentiate these keywords – such as cost, cost/conversion, conversion rate and conversion value.
Referring to the table below, an illustration of how easily it is to differentiate keywords through conversion value.
It can be hard to differentiate between 5 keywords with very similar performance, in this instance, 10 conversions each.
From the table, it can be easily seen that “Black Shoes”, “White Shoes” and “Red Shoes” drive the most conversion value compared “Blue Shoes” and “Green Shoes”.
What this can suggest to the advertiser is to maybe concentrate limited marketing dollars on the former 3s and less emphasis on the later 2s.
Conversion value is not and never will be the singular veto metric by which decisions should be based on.
Routinely, cross-analysis of keywords using various performance metrics are employed to determine the next course of action.
Conversion values, although not the most important metric, does provide another avenue of insight which can be used as a metric to decide what works, what doesn’t, which work better and which not at all.