For me, as a SEM (PPC) Consultant, it is easy to focus conversations and reports around all kinds of PPC metrics (Impressions, Clicks, CTR, CPC, etc.) However, is that what the business that hired us as consultants want? Although their marketing managers might like to hear about how PPC is expanding the reach and visibility of the company, along with the fact that more people are visiting the company’s website, I don’t think this is (nor should it be) the final goal of Internet marketing.
So, what is the final goal of Internet marketing? What is it that businesses want from their PPC Campaigns and from us, their consultants? The simple answer is VALUE. Reports and conversations between PPC consultants and their clients need to be value focused and driven. This means that the “optional” conversion tracking, which is available on both (Google) AdWords and (Microsoft) adCenter, is not optional for successful value-focused PPC Campaigns.
Conversions can be defined as a sale, lead, subscriber, etc. Ultimately, a conversion is the desired action that the business (and Consultant) wants the visitor to take. After defining and setting up the appropriate tracking (which is different between AdWords and adCenter), the next step is to determine a value per conversion. Once value is being tracked, Profit and ROI are easily calculated. With this information, you can calculate ROI from Campaign, Ad Group, Keyword, or even Ad Copy level.
Now, compile PPC reports and have conversations focused around Conversions, Profit and ROI generated from online marketing campaigns. This will give more credibility to you and impress your clients (the upper management, as well as the marketing managers.) These new reports and conversations will help pinpoint where your PPC Campaigns are most costly and where they are most profitable. Test everything and make adjustments as needed, according to what is profitable and what is not. This will help improve performance and show VALUE added, which will delight your clients and their managers.
Let me know if there are any questions or further difficulties on focusing on Conversions, Profit and ROI, rather than other metrics. In addition, if you have any PPC questions or topics you would like to see covered in an upcoming blog post.
