Measuring success for SEA - using and understanding KPIs

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Targeted advertising on search enginesSearch Engine Advertising (SEA) is becoming increasingly important. But also the Success measurement for SEA must be done in order to evaluate the different campaigns and their efficiency. We show you which KPIs are particularly important and why measuring these KPIs can be crucial. After all, the effort should also be worthwhile and profitable for your company!

Measuring success for SEA through KPIs - understanding and interpreting them

Knowing the pure numerical values and KPIs is useful, but not particularly purposeful. Because the The individual values and key figures are related to each other. Accordingly, you must interpret. However, the interpretation depends not least on the objectives sought off. For this reason, many companies find it difficult to use KPIs to measure the success of SEA.

Various key figures for measuring success

Go to Success measurement for SEA many different key figures can be used. Each KPI has a specific meaning and purpose. Just because one of these KPIs isn't suitable for your company doesn't mean that other companies won't still reap the benefits. For this reason, it is important that you know the most important key performance indicators for SEA in any case.

The Impressions

The Impressions are an important figure for measuring success in SEA, but still only of limited significance. Because the impressions only show, how often an ad of yours was displayed in the search engine. For this reason, the values of the impressions are important, but without other KPIs they cannot be used meaningfully.

 

The conversions

The Conversions indicate How often after clicking on the ad, the actions you requested were performed by the user. Be it the Newsletter registration or the Purchase of a particular product. However, conversions are absolute numbers, which you always put into perspective need to do so that you can use the value to measure success for SEA.

The clicks

The Clicks indicate how often a direct impression is followed by a click on the ad. Each of these clicks transfers the visitor directly from the ad to your Website. This is important in principle, but it can also be misleading. Because a single visitor can click on the ad several times. This means that you are not responsible for the individual visitor, but rather pay for the click. So you can see very well how your budget is used for SEA.

The click-through rate (CTR)

The Click rate is far more decisive for measuring the success of SEA, because you can use the Ratio of impressions to clicks consider. This means that you can read from this KPI, what percentage of users not only see an ad, but also click on it.

For this reason, the CTR plays a very special role in measuring the success of SEA.

The click-through rate shows how trustworthy you appear to your customers and what value your Brand can have.

Je höher die Klickrate, umso höher die Relevanz Ihrer Anzeigen für die Nutzer.

The higher the click rate, the higher the Relevance of your ads for the users.

(Image: theonlineadvertisingguide.com/)

The conversion rate (CVR)

On the basis of the Conversion rate can be determined, How many clicks on an ad lead directly to a conversion. This metric is calculated by dividing the number of conversions by the number of clicks.

Basically, this key figure can be summarized as follows. The higher the CVR, the more efficiently the budget is used. The key performance indicator CVR is closely linked to the KPI for the Cost control, CPC connected. Through Conversion tracking tools you can refine the determined key figures even more and thus further optimize the possibilities of your campaigns.

KPIs for cost control (CPC, CPL, CPA, CPO)

A whole series of key figures serves above all to Cost control and the management of costs. These should not be neglected either, since in many companies they are part of the Budget compliance can be used. However, these indicators can only be used to measure and evaluate those actions that are associated with a specific remuneration.

First of all, these are the key figures which Cost per conversion convey. These are CPL with Cost-per-lead, CPA with Cost-per-acquisition and CPO with Cost-per-order.

On the other hand, the key figure CPC, which Cost-per-click means and gives you the real existing costs, which are incurred for you when you click on your advertisement.

These are all important KPIs, but they can only be used effectively on their own in certain environments. As a rule, these KPIs are primarily used to control costs and can be used to Efficiency of marketing activities to be assessed with regard to the budget.

Traditional key figures in comparison

In addition to the typical and above-mentioned SEA KPIs, which are regularly used to measure the success of SEA measures, you should also consider the traditional key figures not disregard.

This includes, among others, the Return on investment (ROI), but also the Cost-revenue ratio (KUR). Both can be important values, which not only show the efficiency of search engine marketing, but also the Value of marketing measures in relation to other company figures. Because these should also not be disregarded in the comparisons of success.

Constant success control of your SEA campaigns

As you can see, there is a whole range of key performance indicators that you can use to measure the success of SEA measures. Of course, not all of these KPIs are equally important and should be valued equally. Among other things, it depends on your company, the goals of marketing, and the company's standing in the marketplace, which metrics are rated particularly highly by you. There can be enormous differences here from company to company.

However, if you have opted for fixed KPIsIf you want to track and follow a specific product, you should stick to it. This is the only way to ensure that both short-term and long-term Define trends and results and these Monitor and control at any time. The better the tracking and the tighter the controls, the sooner you can Avoid bad investments or Stop or revise poorly running campaigns. The control of the KPIs therefore serves not only to measure the success of SEA, but also to optimize the various measures.

 

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