How to Use PPC Data to Inform Business Decisions

Every click your customers make tells a story. Pay-per-click (PPC) data insights hold the key to these stories. From understanding what your customers truly want to predicting future trends, PPC data is a goldmine of information waiting to be tapped. On this page, we’ll walk you through the PPC metrics that matter and how to pair this data with information from other sources to make more strategic decisions for your PPC, marketing, and business as a whole.

Key PPC Metrics You Should Monitor

Monitoring the right PPC metrics is crucial for making informed business decisions. Here are some key PPC metrics to keep an eye on for effective PPC analysis.

Clickthrough Rate (CTR)

CTR measures the percentage of people who click on your ad after seeing it. It’s calculated by dividing the number of clicks by the number of times your ad is shown, referred to as impressions. A higher CTR indicates that your ad is relevant and engaging.

Example

For example, if your ad had 1,000 impressions and 50 clicks, your CTR would be five percent. The average CTR across all industries for Google search ads is about 3.17 percent, while display is 0.46 percent, per WordStream research.

Cost Per Click (CPC)

CPC is the amount you pay each time someone clicks on your ad. Monitoring CPC helps you understand the competitiveness of your keywords and how efficiently you’re spending your budget.

Example

If you’re in a competitive industry like legal services, you might see CPCs as high as $50 or more, while in less competitive industries like e-commerce, CPCs can be as low as $1 or $2. The average is $2.69 on Google search network and $0.63 on the display network, WordStream reports. Focusing on cost-effective keywords in your campaigns can help achieve better ROI.

Conversion Rate

Conversion rate measures the percentage of clicks that result in a desired action, such as a purchase or form submission. It’s calculated by dividing the number of conversions by the number of clicks.

Example

For example, if your ad receives 100 clicks and 10 of those clicks result in a sale, your conversion rate is 10 percent. For comparison, the average landing page conversion rate across industries is about 9.7 percent, according to Unbounce.

Cost Per Conversion

Also known as Cost Per Acquisition (CPA), this metric shows how much you’re spending to acquire a customer or lead. It helps you understand the efficiency of your campaigns.

Example

For instance, if you spent $500 on a campaign and acquired 25 customers, your CPA would be $20. The average CPA in Google Ads across all industries is $48.96 on the search network, per WordStream.

Return on Ad Spend (ROAS)

ROAS measures the revenue generated for every dollar spent on advertising. It’s calculated by dividing the revenue from your ad campaign by the cost of the campaign.

Example

For example, if you spend $1,000 on a campaign and generate $4,000 in revenue, your ROAS is 4:1. A good benchmark for ROAS varies by industry, but generally, a ROAS of 4:1 is considered strong.

Impression Share

Impression share shows the percentage of times your ads were shown out of the total available impressions. It helps gauge the visibility of your ads.

Example

For instance, if your impression share is 60 percent, your ads are shown 60 percent of the time they could be. Improving your ad relevance and bid strategy can increase this percentage.

Quality Score

Quality Score is a metric used by Google Ads to measure the quality and relevance of your ads, keywords, and landing pages. A higher Quality Score can lead to lower CPCs and better ad positions.

Example

For example, a Quality Score between seven and ten is considered good. Improving ad relevance, expected CTR, and landing page experience can boost this score.

Bounce Rate

Bounce rate is the percentage of visitors who click on your ad but leave your site without taking any further action. A high bounce rate indicates that your landing page may not be relevant to the ad.

Example

For instance, if 50 out of 100 visitors leave immediately, your bounce rate is 50 percent. A bounce rate of 40 percent or lower is ideal, per Semrush.

Lifetime Value (LTV)

LTV measures the total revenue a customer is expected to generate over their lifetime. This metric helps you understand the long-term value of acquiring new customers through PPC.

Example

For example, if a customer spends $100 per purchase and makes 10 purchases over their lifetime, their LTV is $1,000. Knowing this helps you set appropriate bid levels for customer acquisition.

Using PPC Data to Optimize Your Marketing Strategy

Using PPC data to optimize your marketing strategy can significantly enhance your campaign performance and overall business outcomes. Here are some practical steps and strategies for leveraging PPC insights effectively.

Analyzing Keyword Performance

One of the primary benefits of PPC data is the ability to analyze keyword performance. By understanding which keywords are driving traffic and conversions, you can optimize your campaigns for better results.

Data to Review

• Search Terms Report: This shows actual search queries that triggered your ads.
• Keyword Metrics: Includes impressions, clicks, CTR, CPC, and conversions.

How to Use It

• Identify High-Performing Keywords: Focus on keywords with high CTR and conversion rates. Allocate more budget to these keywords to drive more qualified traffic.
• Eliminate Low-Performing Keywords: Pause or lower bids on keywords with low CTR and high CPC to optimize budget spend.
• Expand Keyword List: Use high-performing search terms to find new keywords to target.

Example

For example, if “affordable accounting services” has a high conversion rate, allocate more budget here and explore related keywords like “cheap accounting services” to broaden reach.

Refining Your Target Audience

Understanding who engages with your ads is crucial for targeting the right audience. PPC platforms provide demographic and geographic data that can help refine your marketing strategy.

Data to Review

• Demographic Reports: Age, gender, and household income data of users clicking on your ads.
• Geographic Reports: Locations where your ads perform best.
• Device Reports: Performance data split by desktop, mobile, and tablet.

How to Use It

• Tailor Ad Copy and Creatives: Use demographic data to create more relevant and engaging ads for your target audience.
• Adjust Bid Modifiers: Increase bids for demographics, locations, or devices that perform well to capture more valuable traffic.
• Target New Audiences: Identify and test new segments based on insights from high-performing demographics.

Example

If 70% of your conversions come from users aged 25-34, tailor your ad messaging to this age group and increase bids for this demographic.

Enhancing Ad Performance

Improving your ad performance is essential for maximizing your PPC investment. You can optimize your ad copy and creatives by analyzing ad variations and quality scores.

Data to Review

• Ad Variations: CTR, conversion rate, and CPC for different ad copies.
• Quality Score: Relevance, landing page experience, and expected CTR.

How to Use It

• A/B Testing: Continuously test different ad copies to find the most effective messages. Use winners to inform future ad creatives.
• Improve Ad Relevance: Optimize headlines and descriptions to align more closely with user search intent and improve Quality Score.
• Refine Landing Pages: Use Quality Score feedback to improve landing page relevance and user experience.

Example

If an ad with a benefit-focused headline (“Boost Your Traffic by 50%”) outperforms a feature-focused headline, use more benefit-focused messaging in your campaigns.

Optimizing Conversion Tracking

Effective conversion tracking is vital for understanding the ROI of your PPC campaigns. By analyzing conversion paths and attribution reports, you can optimize the entire customer journey.

Data to Review

• Conversion Path Data: This shows the steps users take before converting.
• Attribution Reports: Helps understand which channels contribute most to conversions.

How to Use It

• Optimize Conversion Paths: Identify and streamline the most common paths leading to conversions. Remove unnecessary steps to reduce friction.
• Allocate Budget Based on Attribution: Use data to understand which channels drive the most value and allocate budget accordingly.
• Improve Touchpoints: Enhance the performance of key touchpoints identified in conversion paths, such as optimizing landing pages or adjusting ad messages.

Example

If users often convert after visiting a product page, ensure that the page is optimized with clear CTAs and relevant information to facilitate the conversion.

Conducting Competitive Analysis

Understanding your competitors’ strategies can provide valuable insights for your PPC campaigns. By reviewing auction insights and competitor ads, you can identify opportunities to differentiate and improve your performance.

Data to Review

• Auction Insights Report: This shows how your ads compare to competitors.
• Competitor Ad Copy and Keywords: Review competitor ads and keyword strategies.

How to Use It

• Benchmark Performance: Use auction insights to understand your market position and identify areas for improvement.
• Identify Gaps and Opportunities: Find keywords or ad strategies your competitors are using effectively and incorporate them into your campaigns.
• Differentiate Your Ads: Ensure your ad copy and offers stand out from competitors to attract more clicks.

Example

If competitors are using specific keywords successfully, test these keywords in your campaigns and differentiate with unique value propositions.

Managing Budget and Spend

Efficient budget management is key to maximizing the ROI of your PPC campaigns. By analyzing CPA and ROAS, you can allocate your budget more effectively.

Data to Review

• Cost Per Acquisition (CPA): The cost to acquire a customer.
• Return on Ad Spend (ROAS): Revenue generated per dollar spent.

How to Use It

• Budget Reallocation: Shift budget towards campaigns, keywords, or audiences with lower CPA and higher ROAS for better efficiency.
• Identify Wasted Spend: Cut or reduce spending on underperforming campaigns to maximize ROI.
• Set Realistic Goals: Use historical data to set benchmarks and realistic goals for future campaigns.

Example

If one campaign consistently delivers a ROAS of 5:1, increase the budget for this campaign while scaling back on campaigns with lower returns.

Integrating CRM Insights with PPC Data

Track Lead Quality and Sales Cycle

Understanding the quality of leads generated from your PPC campaigns and the length of the sales cycle can help you refine your marketing strategy and focus on the most effective campaigns.

Data to Review

• Lead Source: Identify where your leads are coming from.
• Lead Status: Track the current stage of your leads.
• Sales Cycle Length: Measure the time taken to convert leads.
• Conversion Rates: Assess how many leads turn into customers.

How to Use It

• Identify High-Quality Leads: Determine which PPC campaigns generate the highest quality leads that convert into sales.
• Optimize Campaigns: Adjust your PPC strategy to focus on these high-performing campaigns.

Example

If leads from a specific PPC campaign have a shorter sales cycle and higher conversion rate, prioritize this campaign to improve ROI.

Measure Customer Lifetime Value

Assessing the lifetime value of customers acquired through PPC campaigns helps determine the long-term profitability of your marketing efforts and guides budget allocation.

Data to Review

• Customer Acquisition Cost (CAC): Determine the cost of acquiring a customer from PPC.
• Customer Lifetime Value (LTV): Assess the total revenue expected from a customer over their lifetime.

How to Use It

• Compare LTV Across Campaigns: Understand which PPC campaigns deliver the most long-term value.
• Allocate Budget Effectively: Focus on campaigns with higher LTV, even if their CAC is higher.

Example

If a campaign has a higher CAC but also higher LTV, it may be more valuable in the long run compared to campaigns with lower CAC but shorter customer lifespans.

Integrating PPC and Sales Data

Integrating PPC data with sales data helps you understand the direct impact of your marketing efforts on revenue and refine your strategies to maximize sales outcomes.

Analyze Sales Attribution

Understanding which PPC campaigns contribute most to your sales revenue allows you to allocate resources more effectively and optimize your marketing efforts for better results.

Data to Review

• Sales Revenue: Measure the revenue generated from each PPC campaign.
• Lead Source: Identify the origin of leads that result in sales.
• Conversion Rates: Assess the effectiveness of campaigns in converting leads to sales.

How to Use It

• Attribute Revenue: Link sales revenue to specific PPC campaigns to identify the most profitable ones.
• Optimize Investment: Increase investment in high-revenue campaigns.

Example

If a particular keyword consistently drives high-value sales, increase your investment in this keyword to maximize revenue.

Monitor Sales Funnel Performance

By examining how users move through your sales funnel, you can identify and address any bottlenecks or drop-off points, leading to improved conversion rates and overall sales performance.

Data to Review

• Sales Funnel Stages: Track the different stages leads go through in the sales process.
• Conversion Rates: Measure the percentage of leads that progress through each stage.
• Drop-Off Points: Identify where leads are most likely to abandon the sales process.

How to Use It

• Identify Bottlenecks: Use PPC data to pinpoint and address bottlenecks in your sales funnel.
• Optimize Ad Campaigns: Adjust your ad campaigns to improve conversion rates at each stage of the funnel.

Example

If many leads drop off at the demo request stage, create PPC ads that emphasize the benefits and ease of scheduling a demo to reduce friction.

Enhancing Customer Insights with PPC Data

PPC data can provide valuable customer insights that, when integrated with other business metrics, offer a comprehensive view of your target audience. Here’s how to leverage this data.

Segment Your Audience

Creating detailed customer segments based on combined PPC and CRM data allows you to tailor your marketing messages more effectively and target the right audience with precision.

Data to Review

• Demographic Data: Understand the age, gender, and other demographics of your audience.
• Geographic Data: Identify where your audience is located.
• Customer Preferences: Track preferences and behaviors from CRM data.
• Buying Behavior: Assess purchase patterns and frequency.

How to Use It

• Create Detailed Segments: Use PPC and CRM data to tailor your marketing messages.
• Improve Targeting: Focus on the right audience with precision.

Example

If a segment of customers prefers a specific product feature, create targeted PPC ads highlighting this feature to attract similar prospects.

Enhance Customer Retention

Using PPC campaigns to re-engage existing customers with personalized offers and promotions can improve retention rates and foster long-term loyalty.

Data to Review

• Customer Retention Rates: Measure how many customers return for repeat purchases.
• Repeat Purchase Rates: Track the frequency of repeat purchases.
• Engagement Metrics: Assess customer engagement levels through CRM data.

How to Use It

• Re-Engage Customers: Use PPC campaigns to re-engage existing customers with personalized offers and promotions.
• Improve Retention: Foster long-term loyalty through targeted campaigns.

Example

Run remarketing campaigns targeting past customers with special discounts to encourage repeat purchases and improve retention rates.

Integrating Website Analytics with PPC Data

Integrating PPC data with website analytics provides a deeper understanding of user behavior and campaign effectiveness. Here’s how to use these combined insights.

Optimize User Experience

Improving the user experience on your landing pages based on PPC and website analytics data can lead to higher engagement and conversion rates.

Data to Review

• Bounce Rate: Measure the percentage of visitors who leave your site after viewing only one page.
• Session Duration: Track the amount of time visitors spend on your site.
• Page Views: Assess how many pages a visitor views during a session.

How to Use It

• Identify Issues: Find which PPC landing pages have high bounce rates and low engagement.
• Enhance User Experience: Optimize these pages to improve user experience and conversion rates.

Example

If a landing page has a high bounce rate, A/B test different headlines, CTAs, and page layouts to determine what resonates best with users.

Track Multi-Channel Attribution

Understanding how PPC interacts with other marketing channels to drive conversions helps you allocate your budget more effectively and optimize your overall marketing strategy.

Data to Review

• Traffic Sources: Identify where your traffic is coming from.
• Conversion Paths: Track the steps users take before converting.
• Assisted Conversions: Measure the impact of different channels on conversions.

How to Use It

• Allocate Budget Effectively: Understand how PPC interacts with other marketing channels to drive conversions.
• Optimize Strategy: Coordinate your campaigns to maximize synergy between channels.

Example

If PPC and email marketing together drive more conversions than PPC alone, coordinate your campaigns to maximize this synergy.

Integrating PPC Data with Financial Metrics

Integrating PPC data with your financial metrics can provide a clearer picture of your marketing ROI and overall financial health. Here’s how to effectively combine these data sources for comprehensive ROI calculations.

Calculate True ROI

Calculating the true ROI of your PPC campaigns by considering all costs and revenue provides a clearer picture of your marketing efficiency and profitability.

Data to Review

• PPC Spend: Track the total amount spent on PPC campaigns.
• Gross Revenue: Measure the total revenue generated from PPC campaigns.
• Net Profit: Assess the profit after all costs are deducted.

How to Use It

• Assess Efficiency: Calculate the true ROI of your PPC campaigns by considering all costs and revenue.
• Optimize Budget: Adjust your budget allocation based on the most profitable campaigns.

Example

If a campaign generates $10,000 in revenue with a $2,000 spend, but only $1,000 in profit after costs, focus on campaigns with higher profit margins.

Budget Allocation

Effectively allocating your marketing budget based on PPC performance data ensures that you invest in the most profitable campaigns and maximize your returns.

Data to Review

• Budget Spend: Track the total spend across all PPC campaigns.
• Cost Per Lead: Measure the cost of acquiring a lead.
• Conversion Rates: Assess the effectiveness of campaigns in converting leads to customers.

How to Use It

• Maximize Returns: Allocate your marketing budget more effectively by investing in PPC campaigns that deliver the best financial returns.
• Optimize Spend: Increase the budget for high-performing campaigns and reduce spending on less effective ones.

Example

If one campaign consistently delivers leads at a lower cost than others, increase the budget for this campaign while reducing spend on less effective ones.

Using PPC Data to Inform Broader Business Decisions

PPC data can offer valuable insights that extend beyond just optimizing your ad campaigns. Here are some ways you can use PPC data to make informed decisions across different areas of your business.

Product Development

PPC data can provide insights into what features or products customers are searching for, helping guide your product development efforts.

Data to Review

• Search Queries: Analyze the keywords and search queries that drive traffic to your site.
• Customer Feedback: Monitor the comments and feedback left on your PPC landing pages.

How to Use It

• Identify Market Demand: Use search queries to understand what products or features customers are actively searching for, which can guide your product development decisions.
• Incorporate Feedback: Utilize feedback from PPC landing pages to improve or develop new products that meet customer needs.

Example

If a significant number of search queries relate to a specific feature that your current products lack, consider developing this feature to meet market demand.

Inventory Management

By analyzing PPC data, you can better predict product demand and manage your inventory more effectively.

Data to Review

• Sales Data: Track the performance of different products promoted through PPC campaigns.
• Seasonal Trends: Analyze historical PPC data to identify seasonal demand for various products.

How to Use It

• Forecast Demand: Use PPC sales data to predict inventory needs and avoid stockouts or overstock situations.
• Adjust Stock Levels: Align your inventory levels with the anticipated demand based on seasonal trends identified through PPC data.

Example

If PPC data shows a spike in demand for certain products during specific months, adjust your inventory accordingly to ensure you meet customer demand.

Customer Service Improvement

PPC interactions can reveal common customer concerns and questions, which can help you improve your customer service efforts.

Data to Review

• Customer Queries: Analyze the questions and concerns customers express through PPC ad interactions and landing pages.
• Conversion Path Analysis: Track the steps customers take before reaching out for support.

How to Use It

• Enhance Support Resources: Use customer queries to update your FAQ section and support materials, addressing common concerns.
• Streamline Support Processes: Identify patterns in conversion paths to streamline customer service processes and reduce friction.

Example

If PPC data reveals frequent questions about product installation, create detailed guides or videos to assist customers, reducing the burden on your support team.

Geographic Expansion

PPC data can help you identify regions with high demand, informing decisions about where to expand your business operations.

Data to Review

• Geographic Performance: Assess the performance of your PPC campaigns in different regions.
• Demographic Data: Understand the demographics of customers in various locations.

How to Use It

• Identify Growth Opportunities: Use geographic performance data to identify regions with high demand where you might consider expanding your business operations.
• Tailor Marketing Strategies: Adjust your marketing strategies to cater to the demographics and preferences of customers in different regions.

Example

If PPC data shows high conversion rates in a specific region, consider opening a new store or expanding your services to that area.

Make the Most of Your PPC Data Insights

Informed strategies that boost ROI and help your business grow start with clean and accurate data. If you can’t readily access the data outlined on this page or aren’t sure how to put it to work, an experienced PPC agency can help. To be matched with an agency with the skill and expertise to help take your business to new heights, request a complimentary consultation.

FAQs on Leveraging PPC Data Insights