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Measure Ppc Advertising

Started by Webm, 2011-07-01 09:45

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Webm

The effectiveness of any program, plan or campaign that is known by the results it achieves. The result of a PPC advertising campaign would increase sales of products / services advertised. It says in Quality Management, "If you can not measure, you can not achieve." So the advertiser has to measure the results to determine the success of their program and, therefore, act on it.

The objectives of an ad may be to increase the number of customers, increasing the dollar value of sales, subscription requests for a service or simply the exchange of personal data. Advertisers must be clear about the goals he / she intends to achieve. Properly articulated goals, followed by well-done advertising campaign and regular measurement of results is complete cycle of a campaign.

The metrics are for measuring return on investment (ROI) at the enterprise level, cost per acquisition (CPA) and click-thru-rate (CTR). ROI measures the profitability of the advertising budget, CPA measures the cost of converting a viewer / user to a client, and CTR measures the number of visitors to the website. With prices increasing supply of keywords, along with increased competition to remain in the same range, the numbers derived from these indicators important for advertisers to take action on the amendment of the campaign, etc.

There are software tools available to track the number of visitors accessing. ROI and CPA can be measured from the actual sales figures and advertising dollars spent. A word of warning to advertisers: it would be myopic to look only at numbers and miss the whole picture. For example, a high click-thru-rate may be due to various reasons such as fraud, etc. and therefore, the CTR has to be correlated with other indicators such as the CPA and ROI to obtain the true meaning.

With an online conversion rate of about 2%, an online advertiser has to make good use of the budget on an ongoing action in the measurements, without which, the ad would be removed from the site where it is hosted, resulting in lost business.



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