Pay Per Click Campaigns: What’s The Most Important Metric?

adwordsWhen launching or running a pay per click, or PPC campaign, what do you think is the most important metric to keep track of? Not long ago, I thought that the cost per click, or CPC was the most important metric, but I was completely wrong.

Although the CPC measures something that you should keep track of, it is not the most important metric. Your daily budget, or daily spend is also not as important as the truly important metric and neither is your total ad budget.

The most important metric for you to keep track of, is your ROI or Return On Investment.

When I was going through the AdWords certification process, I was introduced to the concept of an “infinite budget” campaign. I couldn’t understand how such a thing could exist, until I became comfortable with tracking ROI and what ROI means to a campaign.

It doesn’t matter if you spend $50 on a single click, as long as that click leads you towards making a profit. Even if it’s only $51 worth of business. That’s an extreme example, but hopefully, you get the gist of the meaning.

Keeping track of your CPC is important, it’s just not as important as your ROI.

If it’s costing you more money to advertise than you are getting in return business, then you either have to rethink your advertising, rethink your campaign or rethink your business.

You’re in business to make money, not to lose money. Every dollar that you spend on your business, needs to lead to more than a dollar in return. Otherwise, you won’t be in business for very long.

Seems like such a basic thing to understand, but it’s a hard lesson to learn and take to heart for many of us.

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