Wednesday, March 28, 2012

The Value of PPC: Where is ROI?

All too often PPC reports focus on performance metrics such as:

- Impressions
- Clicks
- Click through Rate (CTR)

Although these metrics are important, where is the value in them? If anything a report showing these items is only showing cost (CPC or CPM) but fails to show any type of value added. This isnt just a PPC problem, but a marketing problem. It is important to not just report on Cost, but to show Value too.

This is why Conversion tracking through analytics is crucial for PPC Campaigns. Once the tracking codes are are in place and working properly, assign a value to each Conversion. Now you can see not only the Cost (CPC or CPM) but also the Value coming from your PPC Campaigns, Ad Groups, Ad Copy, and Keywords. This will greatly help you optimize your Campaigns and reveal where to allocate your budget to increase and maximize your ROI.

If you have any comments or questions about setting up Conversion Tracking through Google AdWords, Microsoft adCenter, or an analytics platform, let us know in the comments below.

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