What’s good in the PPC Adwords report generated in your Marketing Automation Software if you don’t know what the values and the terminologies such as costs per conversion, average conversion value, conversion rate, CTR, clicks, conversion mean?
-It’s not always good if all the values are increasing
-It’s not always good if all the values are decreasing
You got to know which values need to be low and which ones need to be high in order to perform a successful PPC Campaign Management. Here, we will through some light on some of the basic terminologies used in PPC AdWord Campaigns.
Firstly, know about the PPC Web that starts with
Adwords Account → Ad Campaign → Ad Group → Content for Ads
It is the total number of clicks your advertisement received or the total of people who clicked on your ad.
Number of times your ad is fetched to the user, or viewed by the user, or displayed to the user are all termed as impressions. Impressions are not the clicks or interactions with the ad. They are plain and simple number of views on the ad.
If your ad is about buying product, then the conversion is the total number of purchases happened on the ad.
If your ad is selling service, then the conversion is the total number of people who took your service from the advertisement.
So, basically, Conversion is the number of people who actually completed the objective of advertisement for which it was made.
4. Costs Per Conversion
In simple words: The ratio of a number of views on advertisements and the number of conversions (Sign up, Purchases, or the objective of the Adwords completion) is termed as Costs per Conversion. It calculates the value of your capital invested in getting each real conversion on the advertisement.
For Example: If the ad campaign budget is $200 per 200 views, and at the closing of the campaign, you got 50 conversions, then your Costs Per Conversion will be $200/50 that is $4 per conversion.
Costs Per Conversion is not same as Costs Per Click. However, the abbreviation for the both is same i.e. CPC.
5. Conversion Rate
The conversion rate is another ratio factor that needs your attention in PPC Adwords Campaign. It is the ratio of a number of conversions (Sign up, Purchases, or the objective of the Adwords completion) and the number of clicks on the particular ad campaign. It is calculated in percentage.
For example: If the total number of clicks on your ad is 500 and total conversions are 50, then your conversion rate becomes 50/500 = 10%
6. CTR (Click Through Rate)
The conversion rate is the number of conversions on your ad per number of clicks on your ad. CTR or Click Through Rate is the ratio between the number of Clicks on your ad per number of impressions on your ad.
For Example: If the number of clicks on your ad is 50 and number if impressions on your ad are 1000, then your CTR becomes 50/1000 = 5%
You can measure these metrics for the whole PPC ad campaigns, PPC ad groups, and single ads.
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