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How to Determine the Efficiency of Pay Per Click Campaigns

October 19, 2012 by Sathishkumar Varatharajan Leave a Comment

Pay per click advertisements are a cost effective way to promote your company’s products and services. PPC are definitely cheaper than other conventional sources of advertisements such as those in newspapers and television.

Whether you are a starter in business and desire to gain more visibility, or you have a large company that wants to saturate the market, pay per click ads will serve your purpose quite well in online marketing.

Efficiency Of Pay Per Click Campaigns

The attractiveness for businesses in Pay Per Click is that it requires little initial investment and you are able to reach out to distant places around the world. For starters in PPC campaigns, the budget should be kept constant so that you are better able to evaluate the initial efficiency of these campaigns.

Monitoring the results is important so that you know that the money spent in paying Google Adsense or any other PPC provider is not going waste without any return.

In order to determine the efficiency of your pay per click campaign, you should closely monitor and track the progress of the campaign. You can install a web analytics tool that is available on the web free of cost. Through this tool you can analyze which keywords are sending you more traffic, and which keywords are profitable and which are not.

The web analytics tool will also help you determine what the conversion rates from clicks to purchases are. It is all well to have a thousand clicks per day, but are they converting into sales? Or is your money on every click going down the drain?  Free web analytics tool such as Google Analytics, Webalizer, Open Web Analytics, etc. will help you effectively determine the conversion rates of the ads.

In order to find out which keywords are turning out to be the most profitable for you, you can do split testing. In split testing you send out the same ad to more than one ad service provider, and find out where your conversion rates are higher.

When you find out which PPC provider is finding the target audience most proficiently, you can concentrate on that particular provider to get the best results.

You can monitor geographic success in a particular locality by using Google’s ‘Dimension Tabs’. If your ad is not getting much attention in a locality, then exclude that place from advertising. On the other hand, if a place is generating high sales in a particular region, you can try to target your campaign in a more effective way there, for example by using that place’s language in the ad.

Perhaps the most important thing to determine the effectiveness of a PPC ad campaign is to determine your own budget, that is, the cost you are willing to pay per click. If you think the rate is too high compared to the conversion rates, then you will have to remove the ad or modify it.

Determining an ad’s effectiveness is quite a slow process but nevertheless very crucial in deciding further course of action.

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About Sathishkumar Varatharajan

Sathishkumar Varatharajan is a blogger, Internet Marketer and a web enthusiast from Salem, Tamil Nadu, India. He launched Kudo Metrics, in an effort to help all the small and medium sized businesses to achieve their targets and increase their profits. You can connect with him at @sathishkumaratr!

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