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Successful pay-per-click campaigns: Performance Analysis and Optimization

Being probably the most widespread acronym when it comes to online advertising, PPC stands for Pay Per Click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked.

Often used as a synonym for keywords advertising or search engine advertising, as via your PC you may have a visibility of the search engines and bring traffic to your website, aiming at increasing conversions. Paying only when the user clicks on the ad allows you to have control over the costs incurred in advertising and pursue results in line with your ROI (Return on investment) and ROAS (Return on Ad Spend) goals. The Pay Per Click mode is widespread in the main Search Engine Advertising networks, such as Google Ads (formerly Google AdWords), Bing Ads, Yandex Direct, Amazon Advertising, Facebook Ads, etc.

Is it always necessary to optimize, even if the campaigns were created following the best practices?

The careful planning and creation of ppc campaigns according to the recommended guidelines, very often is not enough to achieve the desired performance levels. Thus, it is always necessary to periodically analyze the data available in advertising accounts and act with the appropriate adjustments and optimizations.

All this to avoid the investment in SEM (Search Engine Marketing) campaigns to be added to the company’s expenses list, without impacting the income.

What metrics and KPIs should we focus on when analysing PPC campaign performance?

In other words, how to determine if there is room for improvement in the performance of managed advertising accounts? A great start is the analysis of ppc campaign data, with a focus on the priority metrics:

  • CTR (Click-Through Rate) or the ratio of clicks in relation to impressions
  • Average CPC (Cost per Click)
  • CR (Conversion Rate) refers to the percentage of website visitors who complete the visitor action you desire for the web page

There are multiple factors that affect these values:

the reference sector, the type of conversion to be achieved (e-commerce purchase, newsletter subscription, app download), the type of campaign (Search, Display, Video, Shopping) and the specific search you would like to detent (in the case of Search campaigns).

Therefore, it is difficult to identify indicative fixed values that are good for all advertisers. For example, a CTR of 0.5% is to be considered an excellent result for a Display campaign focused on the acquisition of new users (prospecting), while it can be a rather low value for a Search campaign focused on finding the Brand in the engine of research.

payp per click - ppc campaigns It is possible to analyze some additional values, referring to users’ browsing of the website after a click on the ad, linking the Google Analytics property to the Google Ads account.

What changes to introduce to improve the performance of existing campaigns?

Once all the data from the advertising account have been collected, fundamental KPIs have been analyzed and the phase of analysis of the PPC campaigns has been completed, the optimization process can be initiated, with the aim of exploiting every penny spent to produce the highest ROI in digital adv.

Sometimes it is not easy to determine how much your bid will increase or decrease, rather than how to change the text of a search ad to increase the quality score. Fortunately there are some guidelines to follow to create the changes in the campaigns:

A / B Test: to try different variants / actions and let the data determine which changes bring the best results.

Machine Learning: to rely on the automation testing tools capable of identifying thousands of micro-signals in real time, programmed to showing the right ad, at the right time, to the right user.

We have designed “ReThink“, a system designed to guide the evolution of the brand in the digital age.

If you wish to receive our professional advice, feel free to contact us via the form below.

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