A Comprehensive Guide to Key Performance Indicators in Performance Marketing
Performance marketing is one of the best advertising strategies. You will see high returns and quick results with performance marketing. Therefore, you must know everything about performance marketing. There are a few metrics that every PPC expert should know. Here is a list of all those key performance indicators that measure the success of ad campaigns. You can also get assistance from a performance marketing company in India to assess these metrics.
Core KPIs in Performance Marketing
Let’s divide the KPIs into two parts. There are a few core KPIs which are common to all performance marketing campaigns. You will find that these metrics will help you plan a proper budget for the campaigns.
Click Through Rate
The CTR is calculated by counting the number of people who click the CTA button. These people are potential customers who have shown interest in your products. They have seen all your offerings and might return for a purchase at the ideal time. CTR is a very important metric for judging the effectiveness of your PPC advertising in India.
Conversion Rate
The conversion rate measures how many customers have made the purchase. You must divide the number of successful conversions by the number of people who clicked on your ads. Thus, you can also optimise your campaigns for a better conversion rate.
Cost Per Acquisition
CPA is a key performance metric for all business campaigns. Therefore, this metric is also applicable to performance campaigns. A performance marketing company in India often calculates the cost per acquisition to see if the campaigns are profitable. You divide the revenue with the number of conversions.
Return on Investment
ROI is as simple as it sounds. You just have divide the profit with your investment in performance marketing services to calculate the ROI. This value will help you plan your PPC budget in your marketing budget.
Additional KPIs for Specific Channels
You will also see different KPIs according to the performance marketing channels.
- Social media KPIs: Likes, shares, comments, engagement rate
- Email marketing KPIs: Open rate, click-through rate, conversion rate
- Paid search KPIs: Average cost per click (CPC), ad rank, quality score
You will gain valuable insights of your performance marketing campaigns through these KPIs. This approach allows you to make informed decisions. Remember to regularly monitor KPIs to measure the success of your PPC advertising in India.
