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Home > Blog > Digital Marketing > PPC >

How to Set Advertising KPIs For Your Business?

If you’re tired of running ads that are not making an impact, you’ll want to read this blog.

advertising KPIs

The problem might not be your ad creative or targeting.

Yes, you read that right.

It could be that you’re not tracking and analyzing key performance indicators (KPIs) properly.

Advertising KPIs are critical metrics that can help you measure your pay-per-click (PPC) ad campaigns‘ effectiveness.

Besides, these metrics can help you determine if your ads are:

  • Reaching the right audience
  • Resonating with their pain points
  • Leading to conversions

Knowing your ad KPIs lets you optimize your campaigns in real time. Besides, it can help you make data-driven decisions to boost your returns on investment (ROI).

Some of the critical Google Ads KPIs to track include:

  • Click-through rate (CTR)
  • Cost per click (CPC)
  • Conversion rate
  • Return on investment (ROI)
  • Impressions

You can gain actionable insights into your Google Ads campaigns’ performance by analyzing the metrics. Furthermore, you can create ROI-driven and compelling ads to drive more conversions with the right ad KPIs.
You don’t waste any more time and money on ineffective and ‘goalless’ advertising strategies.

There’s a tool that can help you optimize your PPC campaigns and meet your KPI goals. (we’ll talk about the tool throughout the blog. You don’t want to miss this)

This easy-to-use tool delivers insights and recommendations that can save time analyzing and optimizing your campaigns.

In this guide, you’ll learn the following:

  • How to set advertising KPIs to guide your business
  • Also, we’ll address the following questions:
    • What are advertising KPIs?
    • Why are advertising KPIs important?
  • Types of advertising KPIs to Measure
  • Best way to track your advertising KPIs
  • The tested and proven application to help you meet your advertising KPI goals faster
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How to Set Advertising KPIs For Your Business [Easy Steps]

Before jumping into the how-to guide, we’ll address the following question: what are advertising KPIs?

What are Advertising KPIs?

Advertising Key Performance Indicators (KPIs) are metrics you can use to measure your ad campaigns’ effectiveness and profitability.

These metrics allow you to track and analyze your campaigns’ real-time performance.

Some of the most important KPIs to track in Google Ads, include:

  • Click-through rate (CTR)
  • Cost per click (CPC)
  • Conversion rate (CVR)
  • Return on ad spend (ROAS)
  • Impressions

By tracking and analyzing these ad KPIs, you can gain valuable insights into your campaigns’ profitability.

For instance, if you notice your ads’ click-through rate (CTR) is low, you might want to reconsider your ad creative or targeting strategies.

Conversely, if your conversions are high, it implies your ads are resonating with the target audience. At this point, you can consider scaling the budget to drive more conversions.

This can ultimately result in a better return on investment (ROI).

In the coming section, we’ll address the following question: Why are advertising KPIs important?

Why are Advertising KPIs Important?

Key Performance Indicators (KPIs) can help you to measure the effectiveness of your operations.

Advertising KPIs are no exception.

By tracking and analyzing the right ad KPIs, you can gain valuable insights into your return on investment.

One of the biggest benefits of advertising KPIs is that they provide a SMART way to track progress over time.

With the right key performance indicators, you can set specific and measurable goals and track progress.

Secondly, advertising KPIs can help you identify hidden trends and patterns.

For example, you’ve just discovered that your ad campaigns are generating a high number of impressions but a low number of conversions.

By tracking the right metrics, you can easily take action to improve its conversion rate.

Ad KPIs also provide valuable insights into how different metrics and dimensions, such as location, audience segment, etc., perform.

For example, by tracking search terms data, you can easily add keywords that are driving conversions to your ad groups.

Thirdly, by tracking the cost per click (CPC), return on ad spend (ROAS), etc., you can uncover campaigns delivering the best results cost-effectively, and adjust the budget accordingly.

Keep reading because we’ll take you through the types of advertising KPIs to measure in the coming section.

Let’s dive in.

Types of advertising KPIs to Measure

There are many key performance indicators (KPIs) at your disposal.

Let’s check them out.

  • Reach means the number of people who were exposed to the advertising
  • Impressions are the number of times the advertising was displayed
  • Click-through rate (CTR) means the number of clicks on the advertising divided by the number of impressions
  • Conversion rate is the number of people who completed a desired action, such as purchasing or booking a session.
  • Return on investment (ROI) is the amount of revenue generated by the ads.
  • Brand awareness means the percentage of people aware of a brand or product.
  • Net Promoter Score (NPS) measures customer loyalty and satisfaction.

Advertising KPIs Examples

Below are a few examples of how businesses use ad KPIs to achieve their goals.

Let’s dive in.

  • Uber

Uber uses ride-hailing KPIs like app click-through rate and daily revenue, to ensure it meets its target market’s needs.

  • Coca Cola

Coca-Cola uses KPIs, like brand awareness and market share, to measure the ad campaigns’ success.

  • Google

Google uses website KPIs like click-through rate (CTR) and bounce rate to measure its search engine’s effectiveness.

In the ensuing section, we’ll show you the best way to track your advertising KPIs.

You don’t want to miss this.

Best Way to Track Your Advertising KPIs

There’re multiple ways you can use to drive your KPIs performance up, especially when running Google Search Ads.

However, we recommend you use PPC Signal–designed to help you track and optimize your Google Ads campaigns.

With PPC Signal, you can track the performance of a wide range of KPIs in real-time, including:

  • Click-through rate (CTR)
  • Conversion rate
  • Cost per click (CPC)
  • Return on ad spend (ROAS)
  • Impressions
  • Quality Score

PPC Signal can help you gain a deeper understanding of your advertising performance and make data-driven decisions.

Check out the screenshots of PPC Signal at work.

According to the screenshot above, the Google Ads account in question is facing falling conversions, as reported by PPC Signal.

In this case, PPC Signal is providing low-hanging insights and recommendations into risks and opportunities in the account.

You don’t have to drain your energy or consume lots of hours optimizing each campaign, ad group, ads, keywords, etc.

PPC Signal also provides a detailed data reporting chart to help you identify trends and patterns in your search ad campaigns.

According to the screenshot above, PPC Signal has discovered CPC is growing.

Cost per conversion (CPC) is a KPI that measures the cost of an ad divided by the total conversion value.

If the CPC is falling, it could signal that your ads are driving more conversions at a lower cost. If it is rising, the competition in your niche is growing.

PPC Signal has an in-built summary table that highlights problematic and budget-draining areas in your Google Ads account.

The table also provides a quick overview of the performance of all the campaigns, ad groups, keywords, etc.

FAQs:

What are KPIs in advertising?

Key performance indicators (KPIs) are metrics you can use to measure your ads campaigns’ effectiveness.

Examples of KPIs to track include impressions, click-through rate (CTR), conversion rate, return on investment (ROI), brand awareness, etc.

These metrics can help you evaluate your campaigns’ success and make data-driven decisions.

How do you set KPI for advertising?

To set key performance indicators (KPIs) for advertising, we recommend you establish clear and SMART goals for your campaigns, such as increasing brand awareness or driving sales. Select relevant KPIs that align with those goals, like click-through rate (CTR) or conversion rate.

Lastly, establish benchmark values for the KPIs and monitor performance regularly.

How do you measure advertising success?

Measure ad success using KPIs like reach, impressions, click-through rate (CTR), conversion rate, return on investment (ROI), brand awareness, etc.

These metrics can help evaluate your ad campaign’s effectiveness, identify areas for improvement, make data-driven decisions to optimize performance, etc.

Wrap Up:

In conclusion, measuring the success of your ad campaigns is essential.

It can help you to optimize performance, cut budget wastage, and achieve business goals.

Advertising KPIs like impressions, click-through rate (CTR), conversion rate, and return on investment (ROI) are critical, especially in evaluating the effectiveness of your campaigns.

PPC Signal is a game-changing, AI-powered application that can help your business track and monitor your PPC campaigns.

It does this by diving into your data to deliver insights and recommendations on risks and opportunities facing your ad campaigns.

How much did you enjoy this article?

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