December 15, 2020

PPC Campaign Analysis: Converting PPC Metrics Into Success

ppc metrics

Over $10 billion was invested into PPC in 2017. PPC or pay per click has a lot of advantages to it. One of the biggest advantages is that you can have instant results. You don’t have to wait for organic traffic to do the work for you. If you have PPC ads, you may be experiencing some success with website visits and more leads. But there might be a lot you don’t know about when it comes to PPC metrics. 

If you want to optimize your PPC success, you need to know everything about PPC campaign metrics. You need to know the most important PPC metrics. They can tell if you need to make some minor or major tweaks to your PPC campaign

Here’s a guide on everything you need to know about PPC metrics and how they can give you more success in your business. 


The first metric that can give you insight into your PPC campaign is clicks. While it may not show revenue or how much you are making from a specific campaign, you still need to know if your PPC ad is generating any interest. 

Clicks are the most level of an ad. It’s the first metric you should be looking at to see if there is any interest in your promotion. 

You want to see how many clicks you are getting per day with your ad or across a variety of PPC ads. 

If you are producing very few clicks, it could mean you need to make a change. You need to change the ad copy, the CTA, and perhaps the offer. The goal is to generate a high number of clicks so you know the consumer’s interest is initially there when they first see your ad. 

Cost Per Lead

Another PPC metric to consider that can give you more success is the cost per lead.

From clicks, you should now be looking at leads. You want to see how many people are clicking on your ad and becoming a lead. From there, you want to determine how much you are paying per lead. 

You should compare that metric to your industry standard. You want to see if there’s a continued interest after people click on the ad. If a lot of them are becoming leads, you should have a low cost per lead. 

Cost Per Conversion

After cost per lead, you should consider looking at the cost per conversion. You are seeing how many leads you are converting to sales. 

This is when you begin to look at revenue. Every conversion should point to how much you are making. Every conversion should give you a specific amount of dollars. 

It’s basically telling you how much you are paying to convert someone into a paying customer. If you are paying $50 for conversion, but you only make $45 every time someone converts, then you are losing money. 

Your goal should be to have a low cost per conversion, so you aren’t paying more for your PPC ads. 

Quality Score

Another metric to consider is the quality score. This is what Google evaluates and tells you about your PPC ad. 

Your quality score tells you if your ad is relevant to your target market. It will also reflect if your landing page is any good and relevant. 

What Google is telling you with the quality score is what you need improvement on. They are telling you if you need to either change your target market or if you need to change your ad so it’s more relevant. 

Conversion Rate

Conversion rate is different from cost per conversion. With cost per conversion, you are looking at revenue. However, with conversion rates, you are looking at percentages of how is converting after being a lead. 

If you had 100 leads and 25 of them converted, you would have a 25% conversion rate. While this rate will vary from industry to industry, you would a conversion rate that is higher than the industry standard. 

One way to improve your conversion rate is to work on your sales funnel. You want to make sure people are converting after becoming a lead. You want to continue to grow their interest in your business. 

Average Position

Another metric that can help you understand how well your campaign is doing is the average position. 

This is the position of your ad throughout any given day. Google might show your ad at no. 1 or no. 4 throughout the day. 

You should look at your cost per conversion and see how well your ads do in a particular position. You might discover that some ads perform better when they aren’t ranked no. 1.

Lifetime Value

The final PPC metric to consider that can help with your campaign success is lifetime value. 

With lifetime value, you are calculating the value you are receiving from a customer based on their actions. You are seeing if specific customers continue to shop after they have become a customer from your PPC campaign. 

Now You Know Everything About PPC Metrics

When it comes to PPC metrics, there’s a lot to understand and it can sometimes be overwhelming. The idea of looking and calculating metrics shouldn’t be daunting but rather helpful if you want more success in your business. 

You need to look at these metrics to determine what you need to change in your business. You need to figure out what is working from the beginning customer state with the click to them becoming a lifetime customer. It gives you full insight into your marketing strategy. 

If you want help with your marketing PPC strategy, you can see how we help businesses here