6 Paid Search Metrics That MatterMaster these PPC metrics to stay one step ahead of the rest

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Housekeeping Items

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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1 Conversation RateDefinition of Conversion Rate (CVR)

Conversion

Rate

Conversions

Total Clicks

Tip: Don’t just focus on Click-Through Rate (CTR)

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2 Conversion Rate (CVR)CVR makes an impact near the end of the search “funnel”

Impressions

Clicks

Conversions

$

Conversion Rate is calculated here

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1 How to Improve CVRA core element of all paid search performance

The main ways to improve conversion rate:

Landing page optimization (LPO)

o Google Website Optimizer

Prequalifying in Ad Copy

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Is Your Call to Action Obvious?Clearly announce what you want users to do

Are there many competing objectives?

Is Your Value Proposition Clearly Stated?What differentiates you from your competitors?

What inspires visitors to take the next step?

Has your Primary Objective established Visual Priority?Is the size of elements relative to importance?

Have you considered visitor’s logical eye path?

Have you optimized your lead forms?Is all information absolutely necessary?

1 Improving Your CVR: Landing Page OptimizationImproving your user experience

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• Capture the theme

• Have a call-to-action

• Experiment with copy variations

• Simplify navigation

• Include a clear offer or incentive

1 Improving Your CVR: Landing Page OptimizationMake your business solution compelling

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• What Conversion Optimization Does:

• Determines what will convert at the highest rate

• Predicts with 95% confidence that winner will increase conversion rate

1 Improving Your CVR: Google Website OptimizerUsability testing removes the guess work and replaces with actual visitor data

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1 Improving Your CVR: Prequalify in Ad CopyScreen out traffic to ensure only qualified visitors click on your ad

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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2 Average RankWhat it is and why it’s important

Definition: Your ad’s average position on a

search engine during a period of time

Why It Matters:

Rank Volume

However, advertisers pay a premium for higher position

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2 Average Rank on the Display NetworkThis metric behaves differently on the GDN

Rank is not very useful on

the GDN

Bidding up can actually

make this metric go down!

Why?

Being eligible for new

search auctions

Being eligible for new

GDN sites

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2 Average Rank MythsCommon misconceptions regarding average position

Myth: I need to rank in the first position for all

my keywords

Fact: Lowering your position can lead to more

efficient conversions

Why:

Quality of users does not change, only

volume and price does

CVR does not change based on position http://adwords.blogspot.com/2009/08/conversion-rates-dont-vary-much-with-

ad.html

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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3 Actions Per ImpressionHidden gem for ad testing

Actions

Impressions

Combines both CTR

and CVR into a single

metric

Helps reconcile

problem on uneven ad

serving

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3 Actions Per Impression (cont.)Best practices when using this metric

Remember to set ad serving to “even” for proper testing!

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3 Actions Per Impression (cont.)Best practices when using this metric

Remember to set ad serving to “even” for proper testing!

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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4 Quality Score: The BasicsA crucial element of a successful account

What It Is: A measure of relevancy that Google uses

to determine ad performance and cost

Ads Keywords Website

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4 Why Quality Score MattersLarge impact on overall performance of account

Quality Score (QS) affects three main elements:

Costs QS CPC

Ad Eligiblity

Ad Position

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4 Improving Quality ScoreImprove your CTR!

Ad Extensions

Incentives

Copyright Symbol

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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5 Impression ShareOne of the few competitive metrics available

What It Is: Represents the percentage of times your ads were shown out

of the total available impressions your ads were eligible to appear for

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5 Lost Impression Share Due to BudgetPercentage of impressions not received due to insufficient budget

What This Means:

Lost opportunity due to budget capping!

How to Fix:

Adjust bids so you are no longer hitting cap

OR

Increase your caps

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5 Lost Impression Share Due to RankPercentage of impressions not received due to low ad rank

What This Means:

Your ads now showing up due to low ad position

How to Fix:

Opportunity for more volume if you can afford to bid up

OR

Improve the quality of your ads

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1 Conversion Rate

2 Average Rank

3 Action Per Impression

4 Quality Score

5 Impression Share

6 Relative CTR

Webinar Agenda

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6 Relative Click-Through Rate (CTR)Another competitive metric

Defined: Measure of how your ads are performing in the Display

Network compared to other advertiser’s ads that are appearing on

the same websites

Your CTR

CTR of All Other

Advertisers on That

Placement

Relative CTR

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6 Relative Click-Through Rate (CTR)Using relative CTR to your advantage

Why Relative CTR Matters: Shows where to concentrate your

optimization efforts

How Relative CTR is Measured:

1.0 is average

1.5 = 50% better than competition

0.5 = 50% worse than competition

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• Focus on improving your relevancy to a searcher’s

query

• Competitive metrics are available that help guide

your optimization efforts

• Master the conversion metrics that will have a

meaningful impact on your business

5 Key Takeaways

Thank You!

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