Google AdWords is a popular pay-per-click (PPC) marketing platform that allows businesses and advertisers to create custom search ads. Like other PPC platforms, though, it requires routine monitoring to determine what works and what doesn’t. You can improve the performance of your AdWords campaigns by monitoring the following metrics.
#1) Average Cost Per Click
Click costs for AdWords vary depending on keyword competition, ad position and Quality Score. However, you can view the average cost per click (CPC) for each keyword from the campaign menu. When running an AdWords campaign, pay attention to your keywords’ CPC and whether they increase or decrease.
#2) Average Position
You should also monitor the average position of your ads. Generally speaking, the higher your ads rank, the more traffic they’ll generate. With that said, achieving a higher ad position typically requires increasing your bid cost for the respective keyword.
#3) Click-Through Rate
Click-through rate (CTR) is arguably one of the most important metrics of AdWords marketing. It reveals the percentage of users who click your ad. For example, if your ad generates 10,000 impressions and 2,500 clicks, your CTR is 25 percent. You can typically increase your ads’ CTR by including the keywords on which you are bidding in the ad title.
#4) Earnings Per Click
Earnings per click (EPC) is the average amount of revenue generated for each ad click. With PPC, the general idea is to achieve a higher EPC than CPC. If you are earning more money per click than what you spend, you’ll have a positive return on investment (ROI). On the other hand, if your EPC is lower than your CPC, you’ll lose money on your AdWords marketing.
#5) Quality Score
Ranging from one to 10, Quality Score is a measurement of keyword and ad relevancy and overall quality. AdWords advertisers should optimize their campaigns for a high Quality Score. Doing so will lower their average CPC and promote higher ad positions.
As explained by Search Engine Land, Google recently updated its Quality Score metric to include new columns for advertisers. Now, advertisers can see additional information about their keywords’ Quality Score, including ad relevance, landing page experience, expected CTR and more.
These are just a few important metrics to monitor when running an AdWords campaign. Keeping a close eye on them, though, will allow you to optimize your campaigns for a higher ROI.