What Does A Successful Pay-Per-Click Campaign Look Like?

For many marketers, getting started with Pay-Per-Click (PPC) advertising can seem a little daunting. After all, the process can get a bit complicated if you aren’t sure where to start. And, if you make a false step, you could find yourself blowing your budget on ads that don’t pay off in the long run.

So, what’s the best way to ensure you’re doing the right things when it comes to PPC? Education is always a good first start, but keeping up with your results and metrics along the way is essential in determining if you’re headed in the right direction.

To determine your campaign’s success, pay attention to a few key performance indicators (KPIs). This guide will explain what those are and why you need to focus on them. Let’s get started.

1. Increased Revenue

When it comes to determining if your paid advertising campaign is going well, one of the first and most simple metrics you can look at is increased revenue. Of course, this isn’t something you can just look at data from a few days or weeks to determine.

Instead, increased revenue is more of a long-term peek at your success in PPC. Look at whether your overall revenue has increased at the end of the quarter or over a specific period. Try to track it back to customers that found you specifically from your ads. This will allow you to see whether the overall growth process from this channel is working.

2. Sales Lift

In the short term, you can view your sales lift to see if there are any changes after running a specific PPC campaign. For example, let’s pretend that you’re running a campaign for a particular product over the course of seven days. Did you notice a spike in sales? This would be considered a sales lift.

And it isn’t just eCommerce brands that can use this as a guide to see how well their PPC campaigns are working. If there’s also a brick-and-mortar presence, you can survey in-store customers to determine how they found you online. The higher this lift, the better your Pay-Per-Click results and the better it is to start to scale up your ad spend.

3. Positive Return on Ad Spend (ROAS)

Similarly, your return on ad spend is another important metric to track if you want to see how well your PPC campaigns are working. To get this figure, take your overall revenue and divide it by how much you spend on paid ads.

It is a good number to review to see if your ads are really pushing your growth in sales or if they’re coincidentally going along with other marketing channels you’re utilizing. While ROAS can’t tell you everything about the strength of a campaign, it is definitely a great indicator.

4. Return on Investment (ROI)

Additionally, you’ll also want to review your return on investment (ROI). This metric considers how much you spent to acquire a new customer versus how much they paid to improve your sales revenue.

For most eCommerce businesses, it is essential to consider the customer lifetime value (CLV) compared to the cost of upfront acquisition through the PPC campaign. Why? When you have a good idea of what a shopper might spend over the entire time buying from your brand, you can make better marketing decisions along the way.

5. Improved Conversion Rate

Another key performance indicator of the health of your PPC campaigns is simply your conversion rate. When it rises, you’re doing great and probably seeing a boost in the other KPIs we’ve mentioned in this guide.

If there’s a small rise but not a lot of change, then it might be time to make a few adjustments to your landing page or overall content.

6. Other Campaign Health Metrics

The truth is that a successful paid advertising campaign isn’t all about conversions and sales increases. Instead, there are other KPIs that can tell you whether you’re headed in the right direction — even if they don’t always turn into a customer making a purchase.

Things like bounce rate, session duration, and the number of pages visited make it easy to tell if the traffic you’re driving to your website is even interested in what you have to offer. Further, your click-through rate (CTR) indicates if your ads resonate with your intended target audience — i.e., the higher the CTR, the better the response to your content.

Wrap Up: Running a Successful Pay-Per-Click Campaign

Running a successful Pay-Per-Click campaign starts with knowing what’s working and what isn’t. By consistently reviewing the key performance indicators we’ve discussed in this post, you can make better decisions on your paid advertising plans for the future.

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