SEM Success Metrics
How do I know if my SEM campaign is successful, what are the goals and am I tracking those goals right?
Choosing your keywords, creating a compelling ad is enough or not. Not really! To figure out if your SEM campaign is bringing in customers and you are making money you need to set a clear goal and use metrics to track that goal. Your goal depends on business needs and could fall in these three categories:
- Generating leads
- Brand awareness
- Or all of above.
Chances are you will say I will go for all of above but that becomes tricky and ideally you should go for one metric at one time and track it.
For lead generation go for “Cost Per Lead” (CPL), Sales can be measured with “Return on ad spend” (ROAS). For brand awareness “frequency” or “impact” are good metrics to chase. Now lets deep dive a bit and see how each metrics is derived.
- For Generating Leads: Money spend / Leads = CPL. If as a business a lead is worth $100 and your CPL is $50 your return on investment is positive. Tip: boost your spends on keywords/placements with low CPL.
- For Sales: Revenue / money spends on ads x 100 = ROAS %. Lets say you spend $1000 and get 10000 views. 100 people clicked and 20 visitors purchased and the revenue was $1600. In this case 1600 / 1000 *100 = 160% which is a decent percentage. Tip: spend more on keywords with higher ROAS % and less on lower ROAS %.
- Brand awareness can be measured by tools like Google Analytics / Adobe Analytics. Look at “Unique visitors” “Ad Impressions” “Sessions” “ Pageviews” to get an idea if your campaign is getting desired results. Tip: increase spends on ads and keywords with good click thru rate.
Now that we know how to measure each of the goals, its time to figure out what is most important for my business and go after it one at a time.