If you are running a PPC campaign, you probably know there are many KPIs to look for which could be overwhelming. However, things are a little simpler than some are trying to portray and eventually we need to look at the bigger picture and determine whether one channel is working or not.
Here are our top 3 PPC KPIs we look for:

  1. Conversions: the bottom line that tells us if a campaign is performing or not. If people are converting, things are probably working and we would want to look deeper into this campaign and understand what and how we could optimize based off that.
  2. CPA: the number of conversions leads us to the next important metric – how much we pay for each conversion; then we’d need to determine if that makes fiscal sense.
  3. CTR: this metric is important because it’s a performance driven metric that is based off other performing metrics. Usually, there’s some logical correlation: higher CTR is based off more clicks what likely drives more conversions what could drive lower CPA and higher ROAS per given budget.

From a more global perspective, we should pay attention to these additional metrics:

  1. ROAS: we should measure the return on ad spend for each channel individually and for each marketing vertical. That will give us the best clue about where the best bang for the buck is, in term of marketing performance.
  2. ROI: one of the final global metrics that verdicts the real bottom line and tells us if we are making money off the marketing strategies and whether there is a positive or negative ROI. Some channels could have positive ROI while others negative, so eventually the strategy should be measured from several and perhaps broader perspectives.

Each PPC performance report should highlight these metrics and provide clear numbers. Without knowing how much money is being generated, it would be really hard to guess what would be the optimal eCommerce PPC strategy for one’s business, and unfortunately, we have been seeing a lot of reports who dot not meet these basic standards.