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Pay Per Click statistics

Before you start spending money running PPC ad campaigns, you should have specific goals in mind for what you want your marketing to accomplish. PPC advertising is based on keyword selection. The entire internet advertising market revolves around choosing the correct search terms and keywords. Well managed PPC advertising will bring traffic that achieves your goal, or 'desired outcome', whether it is to publicise an event or sell goods and services. You must set up your campaigns correctly to obtain high quality scores from Google and integrate a strategy for converting visitors to leads. Knowing the following Pay Per Click statistics aspects are important for managing campaigns:

Conversion Rate

The term 'conversion' refers to converting visitors to your site into sales, sales leads or any event that you choose. So if someone clicks on one of your PPC ads, and purchases something from your site, that click is a conversion from a visit to a sale. Remember, advertising is only effective if it generates measurable results. Your Google AdWords account is an investment of time and money that you use to drive customers to your website.

The conversion rate is the percentage of visitors who take a desired action. As stated before the desired action can be a sales lead, a sale, viewing a key page of the site, downloading a brochure, or any other measurable action. To calculate your conversion rate divide the number of conversions by the number of ad clicks.

For companies that seek to generate offline responses like telephone calls, measuring conversions could be difficult until recently. A company called VoiceStar enables you to monitor every call sourced by your site in real time and no additional hardware or software is required.

Cost per Conversion

Cost per conversion is the cost of acquiring a conversion. To calculate cost per conversion divide the total cost by the total number of conversions. Then set your campaign goals to hit the desired cost per conversion.

Click Through Rate (CTR)

Click-through rate or CTR is a way of measuring the success of an online advertising campaign as well as a Pay Per Click statistics for detecting small problems before they become large problems. Your ads and keywords each have their own CTRs, and an overall CTR.

If you notice your CTR drop suddenly and expectingly check your average position. If it has dropped as well, your competitive landscape may have change and this is a warning sign that your campaign should change accordingly. Also remember CTR affects your quality score. Send me your comments and I can give you tips to improve your CTR, and I will also post future articles on how to improve CTR.

Cost per Click (CPC)

Cost per Click or CPC is amount you pay per click on one of your PPC ads. Most advertising networks allow you to set maximum and minimum CPC while some second tier networks do not. It is important to know your average CPC so that through time you can trend and make budgetary decisions for the future.

Just like every business is unique so are PPC campaigns. It may be important to Company A to track incoming phone calls to see which advertising network is producing the best results, where Company B does no phone sales. The important lesson here is in order to truly tap all of the revenue stream through PPC it is important that all efforts can be measured before you can have well managed campaigns. The preceding measurement allow you to utilize the Internet Marketing Method: Experiment. Evaluate. Adjust.

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