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How To Forecast Out Leads With Pay Per Click?

By Author: James
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Pay Per Click (PPC) campaigns are one of the best and fastest ways to get more targeted traffic, new prospects, and to make your brand known. So, it's not strange to see many marketers trying to create PPC campaigns. However, one of the reasons why most of these marketers end up spending a lot of money and they don't even realize how or why is because they simply create the campaign but they don't monitor the results. Ultimately, a PPC campaign that is managed this way can be a waste of time, money, and important resources.

So, how you can keep track of your results from PPC campaigns?

One of the best things about most PPC companies that you can use, like Google Adwords, is that they allow you to monitor your results in real time. So, at any time of the day or night, you can see who's clicking, where they are clicking, when they are navigating within your website, how much time they are there, among many other important things. And when you're not liking what you are seeing, you can simply pause the campaign and try to improve it. It's that simple.

While this is very helpful, the truth is that you need to track and calculate some different metrics in order to know what you are achieving, if it is already good or if it still needs to be improved.

So, here are some of the most important metrics that you should know about and be on top to see if your PPC campaign is working as you expected:

#1: Clicks:

Both clicks and impressions are two important metrics that you should look at. Simply put, clicks referred to the number of times that someone clicked on your ad, and impressions refer to the number of times that your ad was displayed.

So, when you have a lot of clicks in a specific ad, this means that you got a good click-through rate because the ad was attractive and well done. In case you see the number of clicks increasing, maybe it's time to consider increasing the budget for this campaign. In case your clicks are low, the most obvious conclusion is that you need to reformulate your ad.

#2: Cost Per Click (CPC):

When you want to measure the results of your ad, one of the metrics that you need to know is the cost per click (on average). The reality is that the CPC tends to vary a lot from industry to industry as well as from keyword to keyword. Usually, the longer the keyword you use, the better your cost per click.

#3: Click Through Rate (CTR):

One of the metrics that allow you to determine if your ad is great, good, or needs improvement is the CTR. In order to calculate it, you just need to divide the clicks you get by the impressions.

#4: Quality Score:

The quality score tends to be one of the metrics that many people just don't understand. So, let us try.

The quality score is a number that is attributed by Google to your ad. This number is based on different factors that include the relevancy of your keyword, the quality of your landing page, and the past CTR of your keyword. The higher the quality score, the better.

#5: Impression Share:

This metrics serves to compare the difference between the number of impressions that your ad got and the number of impressions that it was eligible to get.

Let's say that your ad showed up 400 times and the keyword was searched 500 times. So, this means that you had an impression rate of 80% and 20% of the impressions were lost. The impressions lost are usually related to either a low ad rank or to budget limitations.

#6: Number Of Conversions:

Since most marketers goal with a PPC campaign is to increase sales, the number of conversions or the conversion rate tends to assume a very important role and metric.

The conversion rate simply shows you the percentage of the people who bought from you. You can easily calculate it by dividing the number of people who took action by the number of people who clicked on your ad.

#7: Cost Per Conversion:

When you have a business, especially if you have a limited budget, it's important that you control all the expenses that you have. So, it's important that you know how much you spent to get a new lead or sale. And this is exactly what you get with the cost per conversion.

Let's say that you made 4 sales and you spent $100 on your campaign. This means that your cost per conversion (CPC) was $25.

As you can see, there are a lot of metrics that can help you monitor and improve your PPC campaigns. And the truth is that it's not hard to calculate them. Make sure that you do this on a regular basis since it is a great way to deliver more and better results.

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