Thursday, October 15, 2009

Measuring The Effectiveness Of PPC 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 leads and close a sale. PPC campaigns are designed to attract a visitor's attention while they are performing searches on the major search engines, and when clicked, lead the visitor to a sales page where they can purchase or learn more about a product.

PPC campaigns ultimately aim to produce interest in a product or increase sales. The technology used in PPC campaigns allow for a quick turnaround of marketing data. Most ppc networks, including Google Adwords, give its users the ability to access useful reports regarding the performance of your campaign - allowing you to tweak your campaigns for better results.

Your site's traffic is the most basic data used for optimizing PPC ads. The data can reveal how many visitors came to your site and identify where they originated. Check the dates when you have experienced a spike in traffic and check if those were the dates when you ran your ads.

The data that directly affects your sales is your conversion rates. Simply put, your conversion rate corresponds to the number of ads that were clicked and the sales that resulted from them. Monitoring this data will reveal how much have to spend on advertising before making a sale. However, conversion rates aren't only limited to sales of a product.

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

Another way to measure the effectiveness of a PPC campaign is to analyze different keywords and keyphrases as they relate to conversion rates. If you are able to drill down exactly which keywords and keyphrases are leading to a sale, you can optimize your website for these words and also use the data for future campaigns.

Lastly, you need to determine the ad rankings within your industry. This help you decide which type of ad placement you will avail. Most ad networks offer two options on ad placement: a regular spot and a featured or special spot. Google Adwords offers something similar. They place the regular ads on the sidebar column and rotates them to give everyone a fair exposure. They also offer the more expensive "Featured Ads" placement.