Is CTR or ROI the Better Measure of a Successful New PPC Campaign?

Mar 27, 2014

To make sure that we’re talking the same language in this article, let’s start out with a few basic definitions.

    CTR or ROI to Measure PPC
  • Pay per click (PPC) – involves driving traffic to your offer by displaying a small ad that appears when your targeted keywords are searched for on a search engine or other digital medium; you pay only when someone actually clicks on your ad.
  • Click through rate (CTR) – is the percentage of visitors who are interested enough to click on your ad to obtain additional information; these prospects will usually be redirected to your landing page.
  • Return on investment (ROI) – is the value you receive for the amount of dollars you invest in a PPC campaign; usually this goal will be expressed in terms of revenue, but it could be based on other criteria such as adding subscribers to your mailing list or generating signups for a trial offer.
  • Conversion rate – refers to the percentage of visitors to your landing page who accept your offer, whether it calls for them to make an actual purchase or simply request a free quote.

Everything Starts With a Click Through

In many ways, PPC marketing is similar to direct selling. No salesperson worth their salt would ever dream of making a sales pitch to an unqualified prospect. Your PPC ad gives you the ability to turn search engine users into qualified prospects who are interested in hearing your story.

The more targeted your ad, the higher your CTR. The higher your CTR, the more qualified prospects you have to make your pitch to. And as any good salesperson can tell you, more qualified prospects means more opportunities to close sales.

Any PPC campaign, especially a new one, should focus on CTR when measuring success. While sales revenue is absolutely vital to keeping your doors open, there are many factors influencing sales success, or ROI, that no PPC campaign can or should be expected to address.

  • Is the market for your product over-saturated with competitive offerings?
  • Is your market growing or is it in decline?
  • Is your product competitive in terms of quality and price?
  • Is your company’s online reputation helping or hindering your marketing efforts?

How to Improve Your CTR

  • Improved CTR begins with your ad. Your action keyword needs to match the keyword that searchers are looking for. Your focus should be on buyer keywords wherever possible; these are keywords that give a strong indication of an inclination to make a purchase. “Fix my leak now” is a much stronger buyer keyword than “plumbers in Portland.”
  • Your ad copy should tell searchers exactly what to expect when they click on your ad, as well as what they will be expected to do once they arrive at your landing page offer. To go back to the previous plumbing example, instead of weak ad copy like “Quality Plumbers – For All of Your Residential Plumbing Needs – Call 000-0000” consider the effectiveness of copy that reads “Get Help With That Leak Now – Call Quality Plumbers for Fast 24-Hour Emergency Service at 000-0000.”

A Few Thoughts About Improving Your ROI

  • You can improve your conversion rate with a landing page that delivers on the expectations of your PPC ad. Deliver on the one promise of your ad and no more. A confused mind rarely buys.
  • Limit the amount of hoops you require your prospects to jump through. You’ll get a better response by simply asking for an email address rather than asking for name, mailing address, phone number, household income, and so on.
  • Are you ready to get started with your own PPC campaign?