Paid Search Metrics; What’s Important

paid media metrics matter

When it comes to analyzing the success of a paid search or display media campaign, I often get conflicting thoughts on what businesses deem as important.

While some value overall clicks for visibility, others see click through rate (CTR) as the premium metric to increase and achieve.

Unfortunately for both of those mind-sets, I believe neither of those to have a strong impact on paid media performance. Below I break out what I believe to be the top five important metrics to set goals against when running a paid search or display media campaign.

1. Ad Quality Score

While I know this isn’t exactly a metric, it should be known, reported on and businesses should always be striving for better in this area. When running paid search in Adwords, it is well known that Google places a lot of emphasis on quality score and it is the one area that can instantly save you money in the paid search arena.

Raising quality score through more relevant keywords to ads and ads to landing pages, can save in the bidding war for who holds the top spots in paid for a given keyword.

2. CPA / CPC(onversion)

What are you spending through this medium to acquire a new customer or user? Do you have a target cost per acquisition in mind? Maybe you have a cost per acquisition from other marketing channels that you can use as benchmarks for paid search or display media.

A lot of people concentrate on cost per click and click through rate. While these can impact each other as well as the perception of your business from consumers, in the end profit is the bottom line and reducing cost per acquisition stands far above click through rate or cost per click in the grand scheme of things.

3. Ad Extension Interaction

This is debatable but I’d love to debate it. I have found in the past six years of running paid media campaigns that the onset of ad extensions has played a larger roll in generating clicks and conversions than any other feature. Using link extensions, phone numbers and physical addresses has brought my clients a higher conversion rate than I could ever believe.

To shed some light on the return you could see, I ran a campaign for a local car dealer. They wanted to attempt to double their leads from their site from 80 to 160 per month. Call extensions was an obvious way to achieve this so that was implemented instantly. Along with the call extension we added site links to the ads to get them into the type of car they were looking for more easily.

In the end the first month alone generated 225 leads via call extension clicks alone!

No matter what you spend or what the objective of your next campaign is, track against the metrics that matter most and you will be on your way to understanding the overall performance more quickly and efficiently.

Chris Kujawski

Founder and instructor at Digital Metrics Guru.

A passionate and driven digital marketer, specializing in Google Analytics, Tag Manager and Data Studio. A qualified expert in Google Analytics and Adwords, with more than 10 years experience delivering sound solutions to clients worldwide.

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