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What your PPC results are really telling you

Struggling to understand your PPC performance? This expert guide helps decode the real story behind metrics like CTR, ROAS, and CPC. Learn how AI, audience signals, and campaign structure impact your PPC results - and how to turn your ad spend into strategic advantage.

By Zoe Ambrogi
PPC in wooden letter tiles with yellow background

References

  1. 1. https://blog.coupler.io/ppc-trends/
  2. 2. https://learn.jyll.ca/blog/when-and-how-should-you-change-bid-strategies-in-google-ads

Frequently asked questions

What does A/B testing mean in PPC marketing?

A/B testing, also known as split testing, involves comparing two variations of an ad or landing page to determine which performs better. The "A" version is the control, while the "B" version is the variant. This allows marketers to make data-driven decisions to improve conversion rates and overall campaign performance. Example: In a PPC campaign, you might create two different ads with distinct headlines. You then measure which ad generates more clicks or conversions, and use the best-performing ad for future campaigns.

How do I calculate CPC (Cost Per Click) in PPC marketing?

CPC (Cost Per Click) is the amount of money an advertiser pays for each click on their ad. It's a key metric to assess the cost-effectiveness of a PPC campaign. Formula: CPC = Total Cost of Campaign / Number of Clicks Example: If you spent £500 on a PPC campaign and received 200 clicks, your CPC would be £500 / 200 = £2.50. This means you paid £2.50 for each click on your ad.

What is ROAS (Return on Advertising Spend) and how is it calculated?

Formula: ROAS = Revenue from Ad Campaign / Cost of Ad Campaign Example: If you made £1000 in revenue from a campaign that cost £200, your ROAS would be £1000 / £200 = 5. This means you're making £5 for every £1 spent on advertising.

What does Conversion Rate Optimisation (CRO) involve?

Conversion Rate Optimisation (CRO) is the strategy of improving the conversion rate of your website or landing page. It involves analysing data and making adjustments, such as testing different headlines, images, or CTAs, to improve the percentage of visitors who complete a desired action (e.g., making a purchase or filling out a form). Example: A CRO strategy might involve A/B testing different landing page designs to reduce bounce rates and increase conversions, ultimately enhancing the overall effectiveness of your PPC campaigns.

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ZoeAmbrogi

Written by

Zoe Ambrogi

Head of Digital Marketing

As Head of Digital Marketing at h2o I specialise in creating innovative strategies that help brands thrive in the digital landscape.