For any business owner or marketing head, it would be a smart move to employ a pay-per-click advertising agency (PPC Ad Agency). However, you need to assess how effective your PPC partner is. This is where KPIs come in.
In this article by Ecompapi, Australia’s #1 Marketing Agency and PPC Ad Agency, we’ll explore five top KPIs that you should look at when evaluating the performance of your PPC ad agency.
- Conversion Rate
The main objective of every PPC campaign is turning visitors into customers or leads. A critical KPI here is conversion rate which shows the number of those who click on an ad that either bought or performed some other action such as filling up a form or subscribing for services and that obviously gives us a high conversion rate implying that the PPC agency is hitting their target audience well and creating ads to motivate them to respond accordingly by taking desirable actions. You should monitor the conversion rates across different campaigns, ad groups and even individual ads to identify what elements work best as well as those areas which need improvement.
- Cost of each Convert/ Conversion
While it’s good to have a high conversion rate, it is equally important to take into account the costs associated with each conversion. It shows how much you are paying for every new customer or lead obtained through your PPC campaigns. A good PPC agency should aim at maximizing conversions while minimizing costs so as to yield a favourable return on investment (ROI). To optimize campaign profitability, one should always compare his/her cost per conversion against the desired target cost per acquisition (CPA) goals.
- CTR
That measures the click-through rate (CTR), which is the number of ad impressions divided by the number of clicks; this indicates whether and how well your ads resonate with viewers. For example, low CTR may indicate issues with ad copy, targeting, or keyword selection. Your PPC agency will continually look for ways to increase CTR such as testing different ads, adjusting keywords and using ad extensions that provide better visibility and user engagement. A higher CTR leads to more traffic and can also positively affect your Quality Score or reduce costs.
- Quality Score
In search engine marketing, Google uses the metric Quality Score to evaluate the relevance and quality of your advertisements and landing pages. It is important because it determines where your ads appear and how much you pay per click. Higher quality scores mean that your ads fit well into what people are searching for and provide them with a positive experience. Your PPC agency should start with improving Quality Score through keyword research, ad relevance, and landing page optimization. Even slight improvements in quality score can result in significant reductions in cost while maintaining a better position of your advertisements.
- Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is an important measure for assessing the profitability of your PPC campaigns. It is calculated by dividing revenue by advertising expenditure. When ROAS>1, then you gain from the campaigns, else if ROAS<1, there is a net loss to you as a business person or marketer. The best thing that your PPC agency could do with this respect is to maximize ROA through constant campaign optimization, budget adjustments and targeting refocusing which ensures that the expenses made towards promotion bring positive returns back to you as a business owner or advertiser. Besides, weighing up ROAS across different product lines/ services or audience segments can pinpoint top performers that need more investment in them by marketers.
Conclusion
Your PPC advertising agency’s performance can be measured by closely following these KPIs, thus making sure that your money is not wasted. In terms of desired results and a successful partnership, transparency and open communication with the company are indispensable. Therefore, feel free to request for frequent reporting and insights which will help you make data-driven decisions when growing your business.
Looking for the best of the best marketing agency and PPC Ad Agency to propel your business to greater heights? Look no further than Ecompapi. Get in touch with them today and get ready to experience the difference for yourself.
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