The efficiency of any program, plan or campaign is known by the results it achieves. The result of a PPC advertising campaign would be to increase the sales of the products/services it advertises. It is said in Quality Management, If it cant be measured, it cant be achieved. So the advertiser would have to measure the results to know the success of his program and therefore to take actions based on that.
The goals of an advertisement can be increased number of customers, higher dollar value of sales, requests to subscription of a service or just sharing personal data. The advertiser should be clear about the goals he/she sets out to achieve. Properly articulated goals, followed by well-crafted advertising campaign and periodic measurement of the result would complete the loop of an advertising campaign.
The metrics for measurement are Return-on-Investment (ROI) at the business level, cost per acquisition (CPA) and click-thru-rate (CTR). ROI measures the returns on the advertising budget; CPA measures the cost of converting a viewer/user to a customer; and CTR measures the number of visitors to the website. With increasing bidding prices for keywords, along with...
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