To make the most money with pay per click, advertisers need to monitor, track and analyze the results of a PPC campaign. The following are tips for determining pay per click campaign success or failure.
Return on Investment
Are you making more from PPC efforts than you are spending on clicks? Have ad costs converted more traffic, more sales, or both? Knowing the answers to these questions will help advertisers determine their return on investment.
Calculating ROI is an essential ongoing check for any ad campaign. If returns do not outweigh costs, it is time to rework your PPC plan. Perhaps bidding lower or using more targeted keywords can improve PPC success. The only way to know is to track and analyze the results.
Conversions
Traffic is good, but sales are better- especially when pay per click is involved. PPC advertisers do not want customers using up costly clicks unless they are a potential buyer. Ideally a customer would see the ad, click thru to the website, and buy something. (Preferably something worth more than the cost of the click.) However, as a general base line, only 1 out of 100 customers who see an ad will click on it and out of those 1%, 1 out of 100 of those who click on the ad will buy something from the website. The ratio of clicks to sales should be at least 1%. If it is not, you need to rework your keywords, ad text, bids, or website.
