Post by account_disabled on Jan 9, 2024 5:52:34 GMT
Click-Through Rate The click-through rate is important because it acts as a bridge between your CPC and CPM. The CTR tells you how many people see the ad versus how many actually click, and you can calculate it with this formula: (Number of Clicks / Number of Impressions) x 100 So if your $250 campaign generated 9,000 impressions and 200 clicks, then your click-through rate would be 2.2 percent. CTR is an important metric because it tells you how effective your ad is. If, for instance, your click-through rate is lower than the average of 1.16 percent, then maybe you should be A/B testing different elements to see where and how the ad can be improved to increase performance. help in this area.
Return on Investment Although CPC and CPM are significant numbers to know Phone Number when it comes to figuring out the cost of your leads, return on investment is arguably more crucial. ROI is integral because it doesn’t just look at the cost, but also what you're getting out of the campaign. It gives you tangible numbers-based data about the benefits of your PPC efforts and tells you how many sales are being generated from the campaign. Just as importantly, comparing the ROI of different efforts gives you invaluable insight into which campaigns are performing by bringing in leads, driving conversions, and increasing sales. Here's the formula to calculate ROI: (Revenue Generated - Cost of Campaign) / Cost of Campaign) x 100
Therefore, if your $250 campaign generated 200 clicks that resulted in $275 in sales, then your ROI would be 10 percent. The one difficulty you'll encounter when calculating the ROI on a PPC campaign is that you can't easily trace each sale back to the campaign in every case. For instance, say a customer saw your PPC ad, clicked through, surfed your site, but then called to order instead of buying online. When looking at your online analytics for PPC reporting, you wouldn’t see that the sale was related to the PPC campaign when in fact it was, and that would skew your ROI calculations. In order to properly calculate ROI for PPC, there are other steps you have to take. One way to see the bigger picture is with call tracking, which provides you with different phone numbers to use on different landing pages based on the keyword. Related Formula: