Monday, March 18th, 2013
There are some of the important metric that we consider useful in our PPC campaigns, but they should be thoroughly checked and viewed before making any decisions, as the alone dependency on them may lead to uninformed decisions. A few of these are quality score, average position, time on site, etc.
There is no doubt that search marketers cannot make decisions without any data. It is only data, which helps marketers in raising bids, changing ad text and pausing keywords. There are many misleading metrics that lead to wrong decisions.
Let’s study these misleading PPC metrics that could cause misinformed decisions.
- Impression Share: It may offer inaccurate snapshot of PPC campaign’s performance. Impression share does not take into account your optimization efforts and thus, may be inaccurate.
- Time on Site: Though this metric was useful a decade back, when the traffic was sent to the homepage, but now this metric is becoming increasingly irrelevant, especially with campaigns with site links that send people to the most relevant page of the site. Tools, like Google Analytics also do not give accurate information, related to this metric.
- Average CPC: Paying attention only to CPC can cause to overestimate or underestimate. Average CPC only tells you a part of the story.
- Average Position: Average position can also throw you out of track, like average CPC. When a decision is based on average position, the number of competitors bidding on keywords, ads showing up on SERPs and other metrics should also be included.
- Daily Budget: Though it is not a metric, but it is one of the important points to take into consideration, as Google and Bing take your daily budget caps less seriously.
- Conversions Rate: There is no doubt that it is important to keep an eye over conversion rate, as it tells you the number of visitors converting into customers. But, it may depend upon business model. There are several factors, like margin of products sold and how to value different conversions that should be pondered over for day-to-day management.
- CTR: Click-through-rate can be manipulated by your SEM manager by boosting the bids and getting ads in the top-position, utilizing ad text containing discounts or promotions, using sitelinks to other ad extensions. Decisions should not be made only on CTR. Instead, how it works for your business should be taken into consideration.
- First Page Bids: It can be used as guideline, but some manual bidding can help you decide where your bid needs to get on the first page.
- Quality Score: Quality score should take into consideration how keywords are affecting rest of your account. If keyword converts and is profitable, then it should be continued to use, no matter what your quality score is. Do optimize and raise your quality score, but it should not be the only factor.
What You Should do to make your Pay Per Click – PPC Campaign Successful