Measuring The Effectiveness Of Pay Per Click Ad Campaigns

As more companies set up websites and landing pages to promote products and service, online advertising has become more important than ever before. Pay per click advertising is just one of several types of online marketing strategies that can help generate more traffic, increase raise and close a purchase. PPC campaigns are designed to bring in the visitor's attention while they're performing searches in major search engine sites, and when clicked on, lead the visitor to the sales page where they can buy or learn more about a product.

If executed well, PPC campaigns are an effective method to generate interest in or sell a product. Pay Per Click campaigns can be set up through AdWords or other advertising publishing platforms, and can be tracked and tweaked as the campaign executes for better performance. Nevertheless, one of the most important elements of pay-per-click advertising is measuring the effectiveness of the ad campaign. Because all of these promotions could be monitored for conversions and click-throughs, ad makers can generate metrics and reports to find out exactly which ads are getting the best results.

Raw numbers coming from traffic counts will be your basis of determining the effectiveness of an ad, and will show you exactly what types of users are visiting to your website. While this numbers will only provide you with an overview of the total volume of traffic, you will be able to drill down the dates of these traffic counts and then compare them to the days that your campaigns were active.

Conversions are probably the most critical statistic for your Pay per click campaign. Understanding how many clicks turned into a sale will give you the opportunity to determine how greatly it will cost you to produce a sale from your marketing campaign, and you can calculate this over a period of time to determine the effectiveness of your postings. Remember that measuring the conversions may take a lot of forms.

Joseph Thornton, creator of the book, "The Online Advertising Playbook" explains that website registration, submitting contact information or requesting a service or product download, are all forms of client interaction that could qualify as a 'conversion' when they're related to a PPC campaign.

Another approach to determine the effectiveness of a PPC campaign is to analyze different keywords as they relate to conversion rates. If you are able to figure out which keywords are leading to a sale, you can improve your website for these words and also use the data for your future campaigns.

Finally, identifying the positions of your advertising segment will help you decide which placement is the ideal for your particular niche or industry. Google AdWords rotates the advertisements in its sidebar column to ensure a fair advantage for all marketers, but there are several spots that are considered 'Featured ads'. These spots may have more value for you in an exceedingly competitive industry, and can also make it easier for you to determine as to how and where to promote your pay-per-click campaign and get the best possible results.