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4 Tips to Measure the ROI of Your PPC Campaigns

Category: Digital marketing Posted on 14-03-2023

You know how hard it is to run a successful PPC campaign, right? You must show the right ads to people at the right time and then convince them to click. That’s a lot of work! But how do you know if all that work is paying off? How do you know if your PPC campaigns are making you money? That’s where ROI measurement comes in.

ROI measurement helps you see what’s working and what’s not in your PPC campaigns. It helps you decide how best to spend your money to get the most out of your ads.


Tip 1: Set clear goals and KPIs

Before you start spending money on ads, take a moment and ask yourself some questions like what do you want from your ads?

Then utilize the Eye10 Competitor Research tool to assess your performance against your rivals.



Tip 2: Track conversions and revenue

Your goals and KPIs are sorted out for your PPC campaigns. Great! Now it’s time to see how much money you make from them.

You want your website visitors to do something when they click on your ads, right? Maybe buy something, sign up for something, or fill out a form. Those are called conversions and the key to measuring your PPC success.

To track conversions, you need to add some code to your website that tells your PPC platform (like Google Ads or Meta Ads) when someone does what you want them to do.

Then you can see how many conversions each ad brings in and which are turning visitors into customers.

However, conversions are not enough. You also want to know how much revenue each ad is generating. That means connecting your PPC platform with your sales or e-commerce platform.

That way, you can see how much money each ad makes and which campaigns give you the best return on investment.


Tip 3: Calculate ROI for each PPC campaign

Now that you’ve set clear goals and KPIs and are tracking conversions and revenue, it’s time to calculate the ROI for each PPC campaign.

To figure out your ROI (return on investment), you need to do some simple math – subtract the cost of your ads from the revenue they bring in, then divide that by the cost and multiply by 100%. What’s your percentage of profit from each campaign?

For example, say you made $20,000 from one PPC campaign. But you also spent $15,000 on ads for that campaign. Your clicks cost $1 each, and you got 15,000 of them. Then your PPC ROI is:

($20,000 – $15,000) / $15,000 = 0.33 

0.33 x 100 = 33%

This means that for every dollar you spend on this PPC campaign, you make $1.33 back. Not bad! That’s why choosing keywords with a good balance of CPC (cost-per-click) and search volume is important. The Eye10 Keyword Planner can help you with that.



Tip 4: Optimize your PPC campaigns for higher ROI

You want to get the most out of your PPC campaigns. That means you need to tweak them occasionally to make them work better and bring in more money.

This way, you can stop wasting money on keywords that don’t do anything for you or don’t match what your customers want. It can also help you get more leads ready to buy what you offer.


Do the following:




Never forget that PPC optimization is an ongoing process that requires constant testing and analysis. Keep an eye on your metrics and adjust as needed to improve your performance. Also, please pay attention to your competitors to see what channels they are capitalizing on; optimizing your PPC is one step, and leveraging the right channel for your target audience is another.

To measure the ROI of your PPC campaigns, you need a solid tool such as the Eye10 Keyword Planner to support your efforts. With it, you can see live data of each keyword’s monthly search volume and CPC before determining whether targeting it is worthwhile. It takes only a few moments to sign up on Eye10!


How can I gauge PPC campaign quality score?

Google uses a 1-10 quality score to measure ad relevance and usefulness. It affects ad rank and cost per click. Check your score in your Ads account by adding a column. Factors include expected click-through rate, ad relevance, and landing page experience.

How do I determine the impact of PPC campaigns on brand awareness/reputation?

To evaluate how your PPC campaigns influence your brand recognition or image, it's essential to utilize metrics to measure your audience's perception and interaction with your brand. Metrics like impression share, click-through rate (CTR), quality score, brand lift, etc., are some of the examples that can help capture this information.

What are the common PPC platforms and their differences?

PPC platforms like Google Ads, Meta Ads, LinkedIn Ads, and Twitter Ads vary in reach, audience, features, and costs. Google Ads offers multiple ad formats and dominates the search market. Meta Ads target users by interests, behaviors, and demographics. LinkedIn Ads is suited for B2B marketing and targets professionals by industry, job title, and company size.

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