How to Interpret PPC Data Correctly (Even If You Have Never Studied Statistics)
Most of you should notice the advertisements that appear alongside search results in search engines; these are nothing but part of pay-per-click advertising. This is because the competition in today’s market is relatively high compared to older times. So now, any company needs to create innovative ideas and efficient solutions to people’s needs to stand out.
How does pay-per-click advertising work?
PPC can be termed an online advertising setup in which advertisers pay a fee each time one of their ads gets clicked. It can be termed as a method of buying visitors rather than earning them. A lot goes into adequately channelizing your PPC campaign- from selecting and researching SEO optimized keywords, organizing those keywords into well-organized campaigns, and setting up PPC landing pages optimized for conversions.
There may be quite a confusion between SEO traffic and PPC data. While SEO is less expensive and gives results longer, PPC is a quick method to increase revenue but is expensive. PPC is such a method to increase traffic to your website or to gain prevalence. The various campaigns related to PPC are-
- Paid search ads
- Display search ads
- Video ads
- Shopping ads
- Mobile app ads
Now, how to interpret your PPC data?
Unlike SEO data analysis, PPC data interpretation is quite challenging. It is only achieved better if you invest time and energy in understanding the conversion rates, CTC, data analysis, etc. But not every marketer is a big statistician, right? Hence this article is intended to help you interpret PPC data even if you know nothing.
You have to understand a few basics and base your knowledge on common sense. Sometimes, instead of taking all the pressure on shoulders, there is one option to transfer this to any PPC agency. Collaborating using Brainvire PPC services or any services makes your work very easy because they have their set of expert data analysts who will take care of your PPC data and interpret it to give a result about your strength, weaknesses, and where to improve. Given below are few steps to interpret PPC data correctly-
1. Gather enough data and figure your goals– Before analyzing data, you have to ensure that you have enough data. Gather enough campaigns and ad group performance compiled data so that you can organize and define your metrics.
Get a correct view of your goals, generating leads, boosting your organic traffic, brand awareness, and increasing conversions
2. Statistical analysis– Collect and observe your numeric data to draw out any specific trend. Read the statistics, understand the patterns and trends of your structured data.
3. Exploratory analysis– Drill down your data into a more specific requirement. Compile into a single data set and observe your keyword performance by time, day, device types, etc.
4. Associative analysis– You can do this analysis by considering related metrics and attributes in your account. You now measure the rate of clicking the ads and the conversion ratio, which will give you an idea about how many clicks are wasted.
5. Historical Analysis– It’s always good to check up on your data with previous performance. Analyzing data in comparison to only one month can give you false hope or expectation. See your performance graph throughout time and opt-in to include your current campaign in the future. You can filter out ‘negative’ keywords or irrelevant traffic.
You must also understand the below metrics before analyzing your data-
1. Click through Rate– It is a metric, as a percentage that shows how many visitors clicked your ad to visit your web page or landing page. To calculate CTR, divide the total number of clicks on the ad by the total number of visitors who saw the ad.
2. Conversion Rate– This metric refers to the journey from clicking to purchasing the product or service. To calculate the conversion rate, divide the total number of people visiting your website by the number of purchases completed. You can track conversions by Google Analytics, Google Ad words, heat maps, replay tools, session recording, and customer satisfaction surveys.
3. Cost per Acquisition– This is one of the most important metrics used to understand the effectiveness of your channel or campaign. It is calculated by the total investment cost of a campaign by the number of conversions or purchases. Reducing your cost per acquisition can increase your ROI (Return on investment) within a short period.
There is a good depth of knowledge required to analyze your PPC data perfectly. The better way is to collaborating with Brainvire PPC services or any such agency that can give good analysis and methods to overcome weaknesses. Obviously, you, yourself, can try to analyze data based on the metrics and type of analysis mentioned above, but it can take your valuable time. Lastly, PPC is an expensive process with the advantage of getting profit within a short time, so prepare your ad in the best way before investing in it.