The Most IMPORTANT AdWords (PPC) Metric...

ImHot · 02-25-2010, 03:28 PM

When advertising on AdWords or any PPC medium, it is always important that you keep your eye on this metric...

ROI & RPC

That is, Return on investment and Return per Click.

Most people seem to think that a high CTR is a good thing, but you should know better. What good is it having a high CTR if less than 1% of those people will buy something?

Your Return per Click (RPC) is how much money you make in profit every time someone clicks your ad. Your ROI is calculated as a percent.

When you are testing multiple ads in an adgroup, pay attention to these two metrics in order to make those big decision of whether or not you should kill a campaign.

What is your guy's opinions, insights, ideas, jokes???

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Lucid · 02-25-2010, 04:19 PM

Actually, CTR is important. And conversion rate is important. Multiply the two and it gives you sales per 10,000 impressions.

You have the right idea but making it too complicated in my opinion. Both CTR and CR are readily available when using Adwords conversion tracking code at the keyword and ad level.

Compare ad with 8% CTR and 3% CV to one with 12% CTR and 2% CV. They both are the same as far as sales per impression is concerned. The deciding factor may be your CPC (ultimately your cost per sale, your ROI) and assuming the positions are similar, go with the high CTR ad. It will likely have a higher QS and lower CPC anyway.

02-25-2010, 03:28 PM	#1
ImHot Active Warrior Join Date: Dec 2009 Posts: 56 Thanks: 2 Thanked 7 Times in 5 Posts	The Most IMPORTANT AdWords (PPC) Metric... When advertising on AdWords or any PPC medium, it is always important that you keep your eye on this metric... ROI & RPC That is, Return on investment and Return per Click. Most people seem to think that a high CTR is a good thing, but you should know better. What good is it having a high CTR if less than 1% of those people will buy something? Your Return per Click (RPC) is how much money you make in profit every time someone clicks your ad. Your ROI is calculated as a percent. When you are testing multiple ads in an adgroup, pay attention to these two metrics in order to make those big decision of whether or not you should kill a campaign. What is your guy's opinions, insights, ideas, jokes??? (Guys, I got a coupon in the mail from AdWords for $100 in free advertising credit. If you have a new account and your interested, send me a shout at kippos6@yahoo.com - This is a great opportunity if you are considering PPC. Oh, and this expires on MARCH.5, 2010. So act quickly...)

02-25-2010, 04:19 PM	#2
Lucid Senior Warrior Member Join Date: May 2009 Posts: 1,142 Thanks: 11 Thanked 128 Times in 120 Posts	Re: The Most IMPORTANT AdWords (PPC) Metric... Actually, CTR is important. And conversion rate is important. Multiply the two and it gives you sales per 10,000 impressions. You have the right idea but making it too complicated in my opinion. Both CTR and CR are readily available when using Adwords conversion tracking code at the keyword and ad level. Compare ad with 8% CTR and 3% CV to one with 12% CTR and 2% CV. They both are the same as far as sales per impression is concerned. The deciding factor may be your CPC (ultimately your cost per sale, your ROI) and assuming the positions are similar, go with the high CTR ad. It will likely have a higher QS and lower CPC anyway.
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